People across the UK are being misled into paying thousands of pounds for so-called ‘asset protection trusts’, which are often disguised as ‘asset preservation trusts’, ‘family protection trusts’ or ‘flexible trusts’ that promise to shield them from paying for care fees or reduce inheritance tax for their loved ones. However, in reality, such schemes are often misused, offer no real protection and can backfire by triggering unintended legal and tax consequences, exposing families to lasting financial and legal harm.
Henrietta Brett, Head of our Private Client team issues a stark warning about the growing threat of trust mis-selling, as new research* reveals that people in vulnerable circumstances – particularly older homeowners, are being aggressively targeted by unregulated firms selling complex and often worthless schemes.
Often falsely marketed as a way to avoid care fees or reduce inheritance tax, the majority of specialist lawyers surveyed (95%) by The Association of Lifetime Lawyers confirm to have encountered cases of trust mis-selling.
And, in the last year alone, members have noticed an increase with three in four having advised multiple clients who have been mis-sold these schemes – with nearly three in four (70%) being older homeowners who either own their homes outright, or have significant equity.
Alarmingly, more than 4 in 5 (82%) say their clients were misled into thinking the trusts would protect their homes or reduce tax, and most victims 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. What’s more, the majority (89%) of these cases involved unregulated providers **, with two-thirds of the firms behind the sales operating entirely outside any regulatory oversight.
The damage caused by these schemes can be deep and long-lasting. Four in five (82%) of lawyers surveyed said the firms selling trusts had appointed themselves as trustees, often without the client’s full knowledge or consent. In parallel, three in four reported clients had suffered financial loss, while a similar number had seen families experience emotional distress or conflict.
Henrietta explains: ““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 is calling for increased consumer awareness, stronger regulation of unregulated firms, and for more people to seek advice from regulated experts in later-life planning, before agreeing to complex trust arrangements.
Read the full report on the Association of Lifetime Lawyers website.
What to look out for
These red and green flags highlight the warning signs of risky ‘asset protection trusts’ (also known as ‘asset preservation trusts’, ‘family protection trusts’ or ‘flexible trusts’), and the hallmarks of safe, regulated advice.
Red Flags:
- Advisers who are not regulated by a legal or financial authority: people who offer estate planning services, without being properly qualified or accountable to a professional body
- 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
Green Flags:
- Advisers who are regulated legal professionals: fully qualified solicitors holding a valid current practising certificate and regulated by the Solicitors Regulation Authority (SRA), or a Fellow member of the Chartered Institute of Legal Executives (FCILEX) and regulated by CILEX Regulation.
- Patience and understanding with any all of your queries raised, with no time pressure placed on you to make a decision
- The role of the trustees, including their responsibilities, duties, and reporting requirements, is fully explained
For help and assistance, please just get in touch. We’re here to help.
*Research conducted via survey of 118 Accredited Lifetime Lawyers in July 2025.
** 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.