Family Protection Trusts. What are they and are they right for me?

Hands of family together holding house in green park - family home and real estate concept

You may have heard through friends of an amazing scheme of giving away your home so that you won’t have to pay care home fees. It seems too good to be true, but you think well if they have done it why shouldn’t we?

As we are living longer, there is more emphasis on our need for extra care in our later years and if this cannot be provided at home it may mean a move into residential care. This, however, will usually come at a price and the only way to fund this cost will be the sale of your home.

So, the solution which is often suggested to “protect” your home is to put it into a Family Protection Trust or a Family Trust.

What is it exactly? The Trusts are often marketed and sold by Will writers or other organisations as a way to protect your home from being sold to pay for care home fees so you can leave it to your family.

The cost of setting up these trusts will often be several thousands of pounds and you will be assured that it will save you money and protect your assets in the future.

As the Trusts are provided by Will writers or others who may not have any formal legal qualifications and will not be regulated by a governing body this may leave you, as the client, open to abuse, incorrect advice, and substandard work. You will have NO form of redress should anything go wrong.

Many clients who we meet have been incorrectly advised as to the implications of creating a Family Protection Trust for example:

  • The couple who have no children or other family members – a Family Protection Trust was of no real benefit to them, but they were sold one anyway
  • Ongoing costs for the administration of the Trust (in addition to the initial costs charged) can be costly and will reduce the value of the Trust payable to the beneficiaries
  • Challenges by the local authority on the basis of “deprivation of assets” when being financially assessed to receive funding for the payment of care home fees. There is no rule to say that any assets in the Family Protection Trusts will be excluded.
  • Inheritance Tax implications may not have been considered and this will reduce the value of your estate to be left to your beneficiaries

As with any other service you are looking for it is beneficial to shop around and there are advantages to seeking advice from a solicitor given that they are regulated by the Solicitors Regulation Authority and are required to have a complaints procedure.

A solicitor will ensure that you receive advice which is personal to your individual circumstances, including the advantages and also the disadvantages of the Family Protection Trusts so that you can make an informed decision as to whether you wish to go ahead.

From experience, the costs charged by Will writers or similar are far higher than those that would be charged by a solicitor but, you will not have the same protection with those who are unregulated as you would with a solicitor.

WHAT TO DO NEXT:

For a FREE initial consultation, call the Wills Department on 0113 200 9720  or contact us online here to discuss how we can help you.

 

 

Quick Enquiry

Meet The Head Of Department

Charlotte Bandawe

Solicitor

Call 0113 200 9787 to speak to one of our solicitors.

CONTACT US TODAY

Simply complete this short form and one of our experts will be in touch soon.

Your confidentiality is always assured and we aim to provide excellence in our client care.

WHAT CLIENTS SAY

See what our customers think of us…

find out more

MEET THE SOLICITORS

See staff from this department

find out more

FACEBOOK FEED

If, like many other people, you have been putting off writing your will, this is your chance to make it right. #Makeawillmonth ... See MoreSee Less

View on Facebook

RELATED NEWS

NEED HELP WITH THIS SERVICE – CLICK TO CONTACT US