“Trusting Our Home Became a Legal Nightmare”
A legal dilemma has unfolded for residential owners in Cornwall, leading some to question the reliability of family protection trusts. Joyce Gifford, a 72-year-old homeowner, discovered that she was no longer the legal owner of her house, which she thought was safeguarded under a trust set up in 2018. Her ordeal began when she faced the implications of transferring her home into the trust with McClure solicitors, based on assurances that it would protect her property from local authority care fees.
Joyce Gifford’s Experience
Gifford signed the trust agreement in a time of great stress, as her husband was critically ill. She believed that the trust would ensure her home could be passed down to her children without financial penalties. However, in 2023, after the firm went into administration, she learned her name had been removed from the property deeds and replaced with Ww & J McClure Trust Corporation Limited.
Feeling deceived, Gifford expressed her distress, stating, “I felt sick…. I had so much stress and anxiety.” The emotional toll has kept her from sleeping, and she continues to pursue her rights as a homeowner.
The Legal Landscape
Asset protection trusts are designed to manage property and finances. Yet, they can be interpreted by local authorities as efforts to hide assets, which may lead to issues during asset evaluations, especially when care fees are involved. Gifford claims she was not adequately informed of these risks during her consultations.
Andrew Robertson, a former director of McClure, contends that their trusts were not mis-sold, asserting that clients voluntarily signed agreements which transferred ownership to the trustees. The experience of other clients suggests that many were similarly unaware of the full implications of their agreements.
Case of Lee Jackson
Lee Jackson from Truro shared a comparable experience with his own McClure trust. After spending £5,000 on the trust, he found himself losing approximately £12,000, including legal fees, to dissolve it. He recalls how the trust was portrayed as a method of “ring-fencing” their property to protect their son’s inheritance.
Jackson eventually realized that the fears instilled by the McClure representative were unfounded. “Our lawyer explained that there was no risk of inheritance tax,” he noted. Like Gifford, Jackson expressed concern over the potential number of individuals unaware that their properties were held in an unreliable trust.
Industry Response and Future Outlook
The Association of Lifetime Lawyers has called for more stringent regulations surrounding the sale of asset protection trusts. Jade Gani, chair of the association, highlighted that while some trusts can be beneficial, they often come with complexities and may not serve their intended purpose.
In light of these developments, the Solicitors Regulation Authority has also examined McClure’s practices but found no criminal activity. The ongoing issues have prompted discussions about improving communication and service standards within trust management companies.
- Clients Affected: Joyce Gifford and Lee Jackson
- Trust Transfer Date: 2018
- Year Discovering Issues: 2023
- Legal Fees Incurred by Jackson: £12,000
- Cost of Trust: £5,000
As Gifford continues her fight for home ownership, the larger community begins to recognize the need for transparency and support in navigating these trusts. Clients are encouraged to seek independent legal advice before entering such agreements to avoid future nightmares.
