Family Protection Trusts

Hi everyone, I would just like to say that I would consider myself very knowledgeable on this matter and should you wish to ask any questions on here I am happy to answer them in open forum.

I'm not suggesting tht this is your motivation, OP, but to anyone thinking of this in order to safeguard assets against care home fees, I'd say please think very carefully.

Aside from the 'deprivation of assets' question - and unsurprisingly local authorities can be exceedingly eagle-eyed on this - there is another aspect many people don't think of.

I have heard of people who think it's a simple matter - if they money has been squirrelled away and the person needs a care home, then the local authority will pay. In practice, where families are dependent on the LA it's often the case that families/carers can be on their knees, stressed and exhausted out of their minds (I am thinking of dementia here) and social workers will still find reasons not to fund a care home. They are all under pressure regarding costs, hardly surprising when you look at care home fees, and it's not at all unheard of for them e.g. to say they can't put the person in a care home if they don't want to go. And of course, virtually anyone, with or without dementia, will say, if asked, that they don't want to go. Particularly in the case of dementia, when the person will very be likely be quite unaware of the strain they are putting on their family, and may well believe there is nothing wrong with them (as was the case with my mother).

We had dementia in two relatives over many years, my mother and my FIL, and I have heard of so many cases like this, with family carers right at the end of their tethers. So I am just pointing out that it's not as simple as some people like to think. Both our relatives were self funded, and TBH, having heard all I have, I think it was a 'luxury' to be able to self fund and to be able to choose the time and place without being dependent on the tender mercies of social services/LAs at all.

Anyone can set up a trust during their lifetime to put assets in so they are owned by the trustees, not by the settlor. There are a number of valid reasons for doing this, but they are usually promoted, even if on a "nudge and a wink" basis, to protect a house from care fees. If this is the reason, or if the transfer is made at a time when it is "reasonably foreseeable" that care will be required, then it will not work because of "deliberate deprivation".
McClures will charge several thousand pounds for setting this up, many other providers or promoters have been investigated by Trading Standards departments.
Such a trust can also trigger an immediate inheritance tax bill if too much is put in, or the value of the assets increases too much.
You should speak to a solicitor specialising in this field, preferably a member of Solicitors For the Elderly or the Society of Trust and Estate Practitioners, who will meet you face to face. But then I would say that as ...

Have spoken to McClure, Solicitors, who specialise in this, so they are very encouraging. They have branches in Scotland and England.

I am also thinking about this and look forward to reading any advice given.

There is really only one answer to your query. Speak to a lawyer who specialises in the field.

I would be interested in any advice too