Protecting your home and savings for loved ones is a high priority for most when it comes to planning for later life. Sadly, a growing number of families are discovering that the Asset Protection Trust they have been sold does not deliver what was promised.
Our Wills, Trusts and Probate solicitors regularly meet new clients who have been mis-sold complex trust schemes that cost thousands of pounds and ultimately offer no real protection. This is a national concern, and The Association of Lifetime Lawyers – the UK’s leading membership body for legal professionals specialising in older and vulnerable clients – has recently raised the alarm about what it calls a potential “trust mis-selling scandal.”
What is an asset protection trust in the UK?
An Asset Protection Trust (sometimes referred to as a Family Protection Trust or a Property Protection Trust) shields an individual’s assets from creditors, claims, or lawsuits. It’s a legal arrangement that is marketed as a form of security. People typically purchase them in the hope of protecting their assets and ensuring that they are distributed quickly to their loved ones upon their passing.
According to research published by the Association of Lifetime Lawyers in July 2025, 95% of specialist lawyers surveyed have encountered cases of trust mis-selling. In the last year alone, three in four members advised multiple clients who had been mis-sold these schemes.
It tends to be older homeowners who are the most common victims, particularly those who own their property outright or have significant equity. Worse, most clients paid between £3,000 and £5,000 for these products, often without fully understanding what they were signing.
89% of cases involved unregulated providers, with many firms operating completely outside regulatory oversight.
The Association of Lifetime Lawyers has warned people that while these schemes promise to protect a person’s home from care fees or reduce inheritance tax, the sad truth is – they can expose families to greater financial risk, tax consequences, and even the loss of their homes.
The risk that unregulated providers pose
Unlike solicitors and other regulated professionals, unregulated providers are not subject to formal oversight and do not have to carry professional indemnity insurance. This means that if something goes wrong, families may have little or no recourse. Worryingly, the research carried out by the Association of Lifetime Lawyers shows that in many of these cases, these unregulated firms had even appointed themselves as trustees (sometimes without the client’s full knowledge!), creating long-term risks and conflicts.
What happens if you’re mis-sold an Asset Protection Trust
If you’ve been mis-sold a Trust by an unregulated provider, there’s a chance you’ll suffer financial loss as a result of these schemes. Instead of bringing peace of mind, these trusts can leave people facing stress, legal disputes, and unexpected bills.
We’re here to help. When it comes to estate planning, care fee planning or inheritance tax, there is no one-size-fits-all solution, and you will need guidance from a properly qualified, regulated professional. Our Wills, Trusts and Probate Solicitors will consider your personal circumstances and long-term wishes and will help you protect your assets safely and effectively.
Based in the New Forest, our team has over 90 years of trusted experience supporting families in Hampshire and beyond. We provide clear, regulated advice on:
- Wills and estate planning
- Lifetime trusts and asset protection
- Inheritance tax planning
- Care home fee planning
- Reviewing existing trust arrangements
If you have already entered into a scheme and are unsure whether it offers real protection, we can review the documents for you, explain your options, and guide you towards a secure way forward. Contact us today.
