Putting 'assets in trust...' scam?

[ScarfAndGlassesgirl]

Hi wondering if anyone has any knowledge or information on this
Dmil (nearly 70) received a phone call from a company (she can't recall their name) asking if she would consider putting her house and assets in 'trust' the trustees will be dh and bil
Basically she believes it will ring fence or protect her assets (maybe around 200k house with no mortgage and savings) from going towards care home fees etc

The company have quoted around 2k to so this for her

She brought me the only literature the sales man who visited her brought- a poorly written A4 paper written like this

On your death!!
If you become disabled!!

The paper also didn't have any branding or logo etc stating company name- red flag for me

Anyway she's not done anything about this but I'm wondering if anyone knows if this is even something that can legally be done- ring fencing your money into a trust so that it will 100% go to your children

Don’t touch it with a barge pole.

There are ways to ringfence assets in trust, but it is complicated and the legal costs are usually pretty high - making it unaffordable unless you’re already v wealthy. If she’s interested she should speak to a solicitor who specialises in trusts. Definitely not some random caller with poorly written information.

This used to be quite common, and is not unlawful. However, social services can go back as long as they wish to in assessing assets, and are so used to seeing this as a means of avoiding care costs that they will treat the property as if it is still owned by the claimant.

It's fine to do, but she's wasting her time (and money).

What you describe is possible but doing this way would be crazy.

Thank you everyone
Basically what I had thought- you've al confirmed...

My mil is very switched on and I could see how something like this would seem attractive to someone more vulnerable

Very helpful replies

In short yes, you can avoid tax/paying for you care home fees by transferring assets to someone else. But you have to do this seven years prior to death/finding yourself in a home and you absolutely must have a legit law firm do this. There is no point for your mother in doing this. Her house isn’t worth enough to be taxed when she dies and doing this to avoid paying for care is a bit immoral not to mention will probably result in her ending up in a really horrible care home in the event that she needs one.

Thanks @OutyMcOutface yeah I agree there is a whole ethics matter attached here and if it did come to her needing care she would probably move in with us anyway!!

Run. Run for the hills.

All you need to know.

www.legalfutures.co.uk/latest-news/bogus-lawyers-jailed-after-targeting-the-elderly-with-asset-protection-scam

Just to clarify Outy the 7 year thing applies to tax but it doesn't apply to finding yourself needing to pay for care, local authorities can go as far back as necessary if they suspect deprivation of assets.

I would pass the letter to local trading standards, or the CAB. CAB can be quite proactive in spotting cons on their patch.