Thousands of people have been mis-sold asset protection trust schemes, with unscrupulous advisers suggesting that a homeowner’s property would be protected by the scheme should they go into care.
However, the Solicitors Regulation Authority is poised to take serious action against advisers who have exploited worker’s retirement fears. With people paying as much as £10,000 for an effectively worthless piece of paper, they are believed to have taken millions of pounds from unsuspecting clients.
Asset protection trusts, when used correctly, ensure that properties are managed and disposed of in accordance with a person’s intentions after their death. Some advisers have used the schemes as a tool, taking advantage of the fear of those who may face the prospect of having to sell their home to pay for residential care services.
Local authorities are now expected to crack down on such schemes under the Whitehall regulations. As a result, trusts that have clearly been set up solely to help people avoid selling their assets to meet long-term care costs will be disregarded.
The SRA stated that it is aware that trusts have been mis-sold and will collaborate with other regulating authorities if necessary to resolve the matter.
With the mis-selling of asset protection schemes, it’s now more important than ever to ensure that your wishes are respected after your death. If you are worried about the handling of your assets when you’ve gone, call us on 01536 276300 for a free no obligation chat.