When Joyce Gifford realized her name had been taken off her house deeds after it was transferred into a “family protection trust,” she felt devastated. The 72-year-old from Cornwall signed her home over to a trust with McClure solicitors in 2018. The aim was to protect her home from being sold to cover care fees, ensuring it could be passed down to her children. At that time, her husband was seriously ill.
Sadly, Joyce discovered in 2023, two years after McClure went bankrupt and after her husband’s death, that she was no longer the legal owner. She recalls, “I felt sick. I didn’t know which way to go. I had so much stress and anxiety; it was terrible.” This traumatic experience is not unique. Many people are finding themselves in similar situations after using trusts like the one Joyce did.
Understanding the Trusts
Asset protection trusts are often promoted as a way to safeguard homes from care costs. However, local authorities may view this as hiding assets, leading to what’s known as “deprivation of assets.” This can trigger challenges to the setup. When Joyce signed the agreement, she wasn’t aware of these implications.
During a home visit from a McClure representative, Joyce and her late husband were encouraged to create the trust, which cost nearly £4,500. They were promised it would protect their home from local authority assessments. However, after McClure’s collapse, Joyce found her own name had been replaced on the deeds, leaving her as just a beneficiary instead of an owner.
Expert Insights
Legal experts highlight that many trusts do not effectively protect against certain fees or taxes. Jade Gani, chair of the Association of Lifetime Lawyers, emphasizes that these trusts can introduce tax complexities and are not a guaranteed safeguard against inheritance tax. She suggests that while trusts can be beneficial in some cases, seeking independent advice is crucial.
A survey showed that many people who use such trusts do not fully understand their implications. Nearly 70% of respondents reported feeling uninformed about what a trust entails, which can lead to heartbreak for families like Joyce’s.
Community Reactions
Joyce’s story has resonated with others facing similar issues. Lee Jackson from Truro is also speaking out after facing losses of around £12,000 from a similar trust. He and his wife originally signed their home into a trust believing they were ensuring their son’s future, only to discover it wasn’t worth the paper it was written on. “It’s been a nightmare,” he says. “People are still finding out their properties are in trust and that McClure has gone into administration—they had no idea.”
This sense of confusion and loss is echoed in many online communities. The “Victims of McClure’s” Facebook group has over 3,000 members sharing their experiences and seeking help.
Regulatory Oversight
The Solicitors Regulation Authority (SRA) investigated McClure but could take no action since the former directors were no longer on its roll. They criticized the new firm, Jones Whyte, for slow communication with affected clients. Meanwhile, Gani is advocating for stricter regulations on asset protection trusts to prevent further issues.
The saga of Joyce and others illustrates a troubling reality. Many unknowingly place their homes in precarious positions. It serves as a warning: seek independent advice when considering your financial future. The implications might be far-reaching, and peace of mind is worth it.
For more information on trusts and the regulations surrounding them, you can visit the UK Government’s official guidance.
