Trust or Trap?
The hidden dangers of asset protection trusts

Across the UK, a growing number of people in vulnerable circumstances – particularly older homeowners – are being misled into paying thousands of pounds for so-called ‘asset protection trusts’.

Also marketed as ‘asset preservation trusts’, ‘family protection trusts’ or ‘flexible trusts’ these schemes are often sold as a way to protect a home from care fees or reduce inheritance tax. In reality, many provide no such guarantees and instead leave families facing:
  • Unexpected tax liabilities
  • Loss of control over property
  • Legal disputes and emotional distress
  • Difficulty exiting the trust
To shine a light on this national consumer issue, our new report ‘Trust or Trap? The hidden dangers of asset protection trusts’ draws on evidence from over 100 of our experienced members, exposing the devastating consequences of mis-selling and highlights the urgent need for stronger regulation.

Alongside the report, we have also collated an easy-to-digest guide to help people quickly assess whether an asset protection trust is likely to be safe or potentially risky, as well as how to make informed choices on the matter.

Download the full report here

Key findings at a glance

95%

of Lifetime Lawyers surveyed have encountered clients mis-sold asset protection schemes

1 in 4

have seen cases increase in the last 12 months

82%

said clients were misled into believing trusts would protect their home or reduce tax

90%

reported that unregulated providers were behind the schemes

£3,000–£5,000

Most victims paid £3,000–£5,000 for a scheme offering little or no benefit

4 in 5

cases involved firms appointing themselves as trustees without informed consent

Did You Know?


Nearly 3 in 4 victims were older homeowners with significant property equity

Many had no inheritance tax liability to begin with, but ended up worse off

Some victims even lost access to their own homes after signing up to unsuitable schemes

What our Lifetime Lawyers are saying 

“This is a consumer protection issue hiding in plain sight. Families think they’re protecting their homes, but instead they’re buying into a trap: increased risks, unimaginable stress, avoidable tax bills, and legal uncertainty. It must be stopped.”
Jade Gani, Chair of The Association of Lifetime Lawyers
“We’re seeing a growing number of people, often in distressing life circumstances, being manipulated into handing over large sums for schemes they don’t need.”
Rebecca McCarthy, Ashtons Legal LLP

Protect Yourself: how to spot a risky trust

Red flags to watch out for, green flags to look out for

Not all trusts schemes are created equal, so to help protect consumers from mis-selling, we’ve created the following guide to help identify the warning signs of unsafe asset protection trusts and make informed choices. 

RED FLAGS

Advisers who are not regulated by a legal or financial authority: people or companies who offer estate planning services, without being properly qualified or accountable to a professional body.
Claims that a trust will protect your home from care fees or eliminate inheritance tax
Applying pressure and using emotionally manipulative sales techniques when you query aspects of the scheme or ask for time to consider your options
Firms appointing themselves as trustees without explaining this and discussing other options and asking you to sign over property or asset ownership
No consideration to whether or not you can undo the planning should your circumstances change in the future

Green Flags

Regulated legal professionals: fully qualified solicitors holding a valid and current practising certificate and regulated by the Solicitors Regulation Authority (SRA) or Law Society of Scotland (LSS); or CILEX Fellow Members (FCILEX) and CILEX Lawyers holding a valid and current practising certificate and regulated by CILEx Regulation
Clear, written explanation of risks, alternatives, and limitations
The role of the trustees, including their responsibilities, duties, and reporting requirements is fully explained
Transparent fees and proper documentation with all legal terms fully explained to you
Patience and understanding with any and all of your queries raised, with no time pressure placed on you to make a decision

Our call for change

The Association of Lifetime Lawyers is calling for:

Greater public awareness

Through clear guidance and education

Stronger regulation

Closing loopholes and holding unregulated firms to account

Mandatory transparency

Clear documentation, regulated oversight, and routes to redress

Improved access to expert advice

Encouraging people to seek help only from qualified professionals

Public Inquiry

To investigate the scale of mis-selling, its impact on vulnerable people, and the urgent reforms needed

Stay informed. Stay protected.

If you’re considering an asset protection trust, seek advice from a regulated professional. Look for an Accredited Lifetime Lawyer.

And if you’ve already entered into a scheme you’re unsure about, it may not be too late. Our members are working hard to help people unravel unsuitable arrangements and reclaim peace of mind.

Download the full report now

Download our red and green flag guide
Read our FAQs Here