Wills & Lifetime Trusts: Pay Peanuts and Get Monkeys!

The Hidden Risks of Low-Cost Wills and Asset Protection Trusts

We are increasingly seeing advertisements for low-cost Wills and Asset Protection Trusts across social media. While these offers may seem appealing, it is important to understand the risks.

Wills and Trusts can be extremely effective tools when used appropriately. However, they must be carefully tailored to your individual circumstances and prepared with the right level of legal expertise.

Regulation and Protection

The companies offering low-cost Wills and Asset Protection Trusts are often not regulated and may not carry professional Indemnity Insurance.

If mistakes are made, there may be limited recourse for you or your family. In some cases, loved ones are left to resolve complex legal issues at their own expense.
For peace of mind, it is essential to ensure your Will Writer is properly regulated and insured.

Are “Simple Wills” really simple?

“Simple Wills” are rare, although they do exist.

We have dealt with homemade Wills on numerous occasions that we’ve taken to Probate. These Wills do not always achieve what is required and what would be best for the family both personally and financially.

A professionally drafted Will helps ensure everything is handled clearly and effectively.

Trusts Are Not Always Required

Trusts can be presented as a straightforward option, but they are separate legal entities that have their own tax reporting obligations and registration formalities. That’s what we call “Housekeeping”.

Setting up a trust is not a simple alternative and is often misunderstood. It should only be used where it is genuinely appropriate.

Asset Protection Trusts

Asset Protection Trusts are claimed to protect assets from care home fees. However, this can be misleading.

Local Authorities may still assess these arrangements under deliberate deprivation of assets rules.

It is also important to consider that:

• These trusts can be expensive to set up; a recent client told us they were going to be charged £4,000.
• They are expensive to end
• They do not guarantee protection from care home fees
• They may not achieve your intended outcome

We regularly speak to clients who have been guaranteed that they will protect their assets from Care Home fees for their children.