11/20/2025 12:46:24 PM | less than a minute read

Shining a light on the dangers of Asset Protection Trusts

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Tessa Bonser

Senior Associate

Get in touch

Tessa Bonser

Senior Associate

The Association of Lifetime Lawyers has produced a report on the hidden dangers of 'Asset Protection Trusts'.

As a lawyer with extensive experience in this area, I have repeatedly dealt with the fallout from trusts of this nature. They are often put in place for the wrong reasons, or in situations where they are not effective and where the pitfalls have not been fully explained.

These include the belief that this sort of trust is effective for saving inheritance tax and avoidance of care home fees, which is simply not the case. Undoing these trusts can also be costly with unexpected tax liabilities.

Trusts can be brilliant vehicles for estate planning and the protection of beneficiaries, but only when you have taken professional advice as to all the consequences.

If you are considering setting up such a trust, please consider getting a second opinion from a legal professional before going ahead.

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’. 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.

www.lifetimelawyers.org.uk/...