Solicitors in Northamptonshire have warned people to be wary of sales people selling “massively over-priced” Asset Protection Trusts.
Wilson Browne Solicitors has received a number of reports of pressure selling tactics, encouraging people to buy the trusts from unregulated providers.
The approach entails the third party selling an Asset Protection Trust to people, to protect their assets from being taken or diluted in order to pay for care home fees or home care.
Vicki Pearce, a partner with the law firm said: “On the face of it, this is all entirely legitimate, until we get to the matter of fees: typically £3,000 to £6,000 when the cost should be in the region of £1,200 plus VAT.
“The companies concerned ‘warn’ clients that they shouldn’t see a solicitor as it will without fail, only cost them more.”
The law firm said such selling often involves a persistent salesperson seeing clients at home and encouraging them to sign up.
There are then follow-up phone calls putting further pressure on the client to ‘do the deal’.
Often, the advice provided is incorrect and clients are not clearly warned about the fact that these trusts are open to challenge.
Such salespeople/advisors rarely provide up-to-date advice on the likes of inheritance tax changes.
A Wilson Browne spokesman said: “We warn anyone contemplating an Asset Protection Trust to seek proper legal advice first and not to be pressured into signing anything until they have done so.”