There are companies who offer “Asset Protection Trusts” to give “guarantees” that you will not have to pay Local Authority Care Home fees or Inheritance Tax.
Beware! These types of trust are not suitable for everyone. There are very strict rules relating to gifts to avoid Care Home fees and there are complicated rules relating to Inheritance Tax. Every person’s circumstances are different and without proper legal advice you could end up in breach of the rules relating to deliberate deprivation of capital for Local Authority financial assessments. You could end up without the means to choose which type of care you have in the future. You could end up ensuring that Inheritance Tax is paid on the trust even though your estate would not have been liable for it.
Some of these companies charge huge fees, often running in to several thousands of pounds, to set up the Asset Protection Trust, appoint themselves as trustees and continue charging fees for administration into the future. There are companies out there who will not advise you properly on the consequences of setting up one of these trusts.
Some of these companies are not regulated by the Solicitors Regulation Authority and some of the lawyers are not qualified. This might mean that they are not covered by insurance.
Please ensure that you seek full, independent legal advice by someone qualified to advise on these subjects before paying over any money. For more information please contact us.