McClure Solicitors Family Protection Trusts
Trusts
Who are McClure Solicitors?
McClure Solicitors were a Scottish firm of solicitors. They ceased trading in 2021 and were overtaken by another firm of Solicitors. They have become well-known throughout Scotland, England and Wales for setting up family protection trusts which were often not required or not suitable.
What are the McClure Family Protection Trusts?
They are trusts, often set up by spouses or civil partners, where each person places half of their property into a trust. Unfortunately, it has since become clear that many of these trusts either were not suitable at the outset, or circumstances have since changed and mean that the trusts no longer work as intended.
What are the problems with these trusts?
- “Family protection trusts” are typically advertised as a way of avoiding inheritance tax and/or care fees, depending on the circumstances in which they are set up (and the timing). They will often not achieve either.
- The Trustees (the people who are in charge of looking after the trust) include previous partners or directors of McClure meaning that it can be much more complicated to sell, or do anything, with the house that has been placed in the trust.
- The trusts may have incurred a Capital Gains and/or an Inheritance Tax bill that requires paying.
Should I be worried?
If you have set up a family protection trust, whether with McClure or otherwise, then it is always worth reviewing the document to make sure that it is still suitable. Better yet, seek professional advice if your circumstances change significantly.
If a person loses capacity or passes away with one of these trusts in place, it can make things a bit more difficult. If you find out that a loved one has put one of these trusts in place, it is even more important that you approach someone who has detailed knowledge of trusts to get advice.
When is this type of trust suitable?
At Lawson West we generally advise against this type of trust, except in very limited circumstances.
Local authorities know that people want to avoid paying care fees and so they can simply ignore any gifts or transfers into trust where the sole or main purpose was to avoid having to pay for care. This means that trusts, or outright gifts, often do not help a person to avoid having to pay for their care (if required).
How can Lawson-West help?
We have experience in dealing with these trusts set up by McClure. This means that we know what the documents look like, the typical wording involved, and we have contact with the ex-directors of McClure who are often appointed as co-Trustees. This means that we can deal with your matter quickly and efficiently, keeping costs at a minimum.
