Basingstoke Solicitor Warns of Trust Mis-Selling Scandal Costing Families Thousands

Families across the UK are being misled into paying between £3,000 and £5,000 for so-called “asset protection trusts”. Often marketed as “asset preservation trusts”, “family protection trusts” or “flexible trusts”, these schemes are sold as a way to shield property from care home fees or reduce inheritance tax. In reality, they rarely deliver the protection promised and can leave families worse off.

Instead of providing peace of mind, these arrangements often trigger hidden risks, unexpected costs, and even family disputes. Many are sold by unregulated providers, leaving people exposed to lasting financial and legal harm.

Rising Concerns Over Mis-Sold Trusts

New research from the Association of Lifetime Lawyers reveals the scale of the issue:

• 95% of specialist lawyers surveyed have encountered cases of trust mis-selling.
• Nearly three in four advised multiple clients last year who had been mis-sold these schemes.
• 70% of affected clients were older homeowners with significant equity.
• 82% were misled into believing their homes would be protected or that tax liabilities would be reduced.

Many victims paid thousands for complex legal documents they did not fully understand, often drafted by firms operating outside any regulation. Shockingly, in most cases, these firms had even appointed themselves as trustees — sometimes without the client’s knowledge or consent.

Expert View from Phillips Law

Sian Lias, Legal Director and Co-Head of Wills, Trusts and Probate at Phillips Law, has seen first-hand the damage these arrangements can cause.

“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 is vital to seek advice from a properly qualified, regulated professional you can trust. And if you have already been caught in one of these schemes, there are ways out—we can help.”

Protecting Yourself and Your Family

The Association of Lifetime Lawyers is calling for:

• Greater public awareness of trust mis-selling.
• Stronger regulation of unregulated providers.
• More people to seek advice from regulated, accredited experts before signing complex trust arrangements.

If you are considering setting up a trust or are worried about one you have already signed, Phillips Law can provide clear, regulated advice tailored to your circumstances.

📞Call us on 01256 460830.
📧 Email [email protected].