Warrington law firm partner warns against misleading asset protection schemes

A Cheshire-based private client solicitor is calling for public awareness and tougher regulation against misleading asset protection schemes that cost consumers thousands but offer nothing but false promises.

Families across the UK are paying up to £5,000 for asset protection trusts, which are often disguised as asset preservation trusts, family protection trusts, and flexible trusts.

Offering to shield people from paying for care fees or reducing inheritance tax for loved ones, the reality is that such schemes are often misused, offer no real protection, and can backfire by triggering unintended legal and tax consequences that expose lasting financial and legal harm.

Research conducted via a survey of more than 100 accredited Lifetime Lawyers revealed that people in vulnerable circumstances, particularly older homeowners, are being aggressively targeted by unregulated firms selling complex and often worthless plans.

Kristel Clarke, partner and member of the probate department at Warrington-based Watsons Solicitors, has issued a stark warning about the growing threat of trust mis-selling.

She said: “Families are being sold expensive, complex trusts that promise protection but often deliver the opposite. Instead of security, people are left facing financial loss, stress, and even the risk of losing access to their own homes.

“There is no one-size-fits-all answer to care planning or inheritance. That’s why it’s vital to seek advice from a properly qualified, regulated professional you can trust, and if you’ve already been caught in one of these schemes, there are ways out, we can help.”

The Association of Lifetime Lawyers survey of specialist lawyers highlighted some worrying statistics with regards to asset protection schemes, including that 95 per cent have encountered cases of mis-selling.

Other data found:

• Three in four members have advised multiple clients who have been mis-sold these schemes, with 70 per cent being older homeowners who either own their homes outright or have significant equity.
• Some 82 per cent say clients were misled into thinking the trusts would protect their homes or reduce tax.
• Most people paid between £3,000 and £5,000 for having complex legal products drawn up, when they didn’t fully understand what they were signing up for and that offered no legal protection.
• The majority (89 per cent) involved unregulated providers*, with two thirds of the firms behind the sales operating entirely outside any regulatory oversight.
• Four in five (82 per cent) of lawyers surveyed said the firms selling trusts had appointed themselves as trustees, often without the client’s full knowledge or consent.
• Three in four reported clients had suffered financial loss, while a similar number had seen families experience emotional distress or conflict.

To speak to someone at Watsons Solicitors, please contact enquiries@watsonssolicitors.com or call 01925 571 212.

Watsons Solicitors, which has been established for more than 60 years, specialises in family law, employment law, wills and probate, and conveyancing.

The team of experienced solicitors holds various accreditations and memberships of professional bodies relevant to their expertise, while the firm’s partners oversee all areas of work.

*Unregulated providers are typically individuals or companies who offer services related to estate planning, from the drafting of wills, setting up trusts, to advising on inheritance tax–who are not subject to formal regulation or oversight by a professional body, and crucially aren’t required to have insurance to cover negligence.