Property Asset Trust

[Verbena37]

Have posted this in money matters too but think it might be more appropriate here....
Hi,
My parents have just had a free one hour meeting from a paralegal guy who has assured them that he can set up a trust for their house for which myself and my sibling will be beneficiaries once they've died.

He has charged them £1800 for that.....which they gave have already given him a cheque for in advance for the work that needs to be carried out.

I just told DH and he said it seems like a rip off, if it's even legal at all.
I've looked into setting up trusts online today and it seems like it's genuine but has anybody else known people to do this?

The guy told them that a solicitor would be much more expensive if we had to go through probate after death and take up to 6 months, whereas a trust is instant.

Anyone think this sounds dodgy?
He told them that solicitors don't generally suggest putting homes into trust for children as they make much more money in probate fees.

Oh dear.

As a willwriter alarm bells are going off in my head.

I normally charge £100 on top of the standard will fee to put a property into a Life Interest Trust, and never ask for money before the work is completed.

There should be a cooling-off period so I think they should cancel their instructions immediately and cancel the cheque until they've had time to look into this properly..

Dodgy. get the cheque cancelled.

I'm a solicitor

There is a 14 day cooling off period.
I'll tell them to cancel the cheque.
Forgot to also say how he took their house deeds with him, took photos of them and took copies of their driving licenses and passports.

I wouldn't worry so much about taking copies of their ID. I don't personally do it but I do make a note of clients' PP numbers and check their photo ID.

As well as cancelling the cheque, they do need to cancel their instructions in writing. The method of doing so will be on the Ts and Cs

Thank you, yes it says in writing or email.
I'll tell them tonight that there is no harm is cancelling for now to take more time to check it out.

If it's to avoid care home fees It may be a waste of money
My parents were advised to do this and were quoted £2500 but when hey checked with he solicitor he said that the Council could over turn it as it would be obvious wh they had done it

That depends on the type of trust though, Hopping, as some types are more watertight than others. If the OP's parents were also told that it would save on IHT, they were wrongly advised.

IHT is irrelevant as their property falls well under the bracket for IHT.
They just want my sibling and I to have their home they've worked hard for all their life. I and they realise about the care home thing but they are youngish parents, in their early 60's, fit and healthy and have no desire to go into a care home for a very long time in the future.

Their pensions and the rest of their remaining estate will obviously to to paying if any care home isn't needed in future.

FIL did the same thing just before the rules changed on putting property into trust like this. DH and I were very cross since we are both solicitors but FIL didn't think to speak to us before handing over £2k to a dodgy company.

They now have the family trusts in place (because they had already done it by the time they spoke to us). The trusts are completely pointless.

Speak to a solicitor about something like this - always. We might not all be good but we are obliged to act in our clients best interests. That includes telling you if something you are thinking of doing is a waste of your money.

Thank you Atticus. That's useful to know.
I'm writing the cancellation email for them now.

All sorted and cancelled.
Atticus had w come the property trusts are pointless?
My parents saw a a solicitor yesterday who said the same...that they're not always a watertight way of your children inheriting your home. He said about them gifting it to my sibling and me but then DH pointed out the big problem with that.

If they gift it soon, that would mean we half own the house.....a second home and we would therefore be liable for capital gains tax upon their death. Also, my sibling receives benefits so they wouldn't then be entitled to those yet, with my parents still living in the house, my sibling would have no financial benefit from the house....but no benefits.

All a nightmare!
Tbh, I'd rather my parents didn't give us the house at all!