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Golden Charter Family Protection Trust

13

Comments

  • My parents (now in their 80's) took out the Golden Charter Funeral Plan many years ago.
    Now they've been approached to take out the Family Protection Trust.
    Based upon what I read here I told them to send me the paperwork (they live 200 miles away).
    Their house is worth a little over £100,000, and apart from their Pensions, they only have £9,000 in Cash Assets.
    The Golden Charter booklet confuses the issue throwing lots of different issues into the mix, confusing even for educated people in their 50's.
    Golden Charter quoted them £3,845 for setting up the Trust, ie 40% of their remaining savings.
    I've told them not to bother - I don't need their money to be saved for me, they should spend it on themselves.
  • ticktack_2
    ticktack_2 Posts: 172 Forumite
    dlewis1966 wrote: »
    [...] I might consider using Beneficent Law who are a not for profit company.

    I hadn't heard of Beneficent Law before. Their website is certainly very informative about different kinds of trusts. I'm slightly put off because they have a link from their website to "Reviews" -- surely rather unusual for a law firm? And what's worse, on the Reviews page, all the reviews give 5 stars for everything, which makes me wonder if they're genuine reviews.

    I need a new will. Maybe I'll test them out by using the will services.
  • MeanExpat
    MeanExpat Posts: 47 Forumite
    Like Ticktacks, I need to make a new will and read thoroughly the Beneficent Law website and reviews.
    All these 5 star reviews start in Aug 2009 and the last one date from April 2011, a year ago.
    I wonder why no-one felt the urge to praise this company in the past 12 months.

    Has anyone been in touch with them recently?
  • stevepett
    stevepett Posts: 79 Forumite
    Any chance someone could separate these two threads?

    1) Funeral Plans

    2) Asset Protection Trusts

    There is a great deal of confusion about both of them, but trying to clear it up would probably make it worse!

    But here goes!

    1) Funeral Plans don't normally cover everything, and that is made clear in the rather large "small print" - but it is open to everyone to add in additional finds for "extras." Memories fade and third parties assume everything will be covered. Prepaidfuneralreview.co.uk can give you a checklist of things to consider. You don't have to give any details to get the checklist - just download it.

    2) Asset/ Home Protection Trusts - good lord, what a lot of confusion. Most solicitors are not experts at these things, and will just cut and paste a precedent from a book. If it gets challenged, you're on your own. Good sound home protection plans are available. And yes, there really is a 6 month rule, but I think that is enough said for now.

    PS Protective property trust wills (severance of tenancy etc) are not generally as cost effective as a full trust in the long term, as probate is needed on the first death, and protection is only partial. But they are relative cheap if your short on cash, and WAY better than no precautions.

    !!!!!!!!!!!!!!
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    My funeral plan is to be buried in the garden near the cats. My wife might not agree to it, mind.
    Free the dunston one next time too.
  • stevepett
    stevepett Posts: 79 Forumite
    edited 3 August 2012 at 8:03PM
    What a lot of confusion about Home Protection Plans!

    Useful leaflet at Asset Protection Secrets

    My family trustees are able to top up my care fees from within the Trust if necessary, and my IFA says that savings wrapped in an investment bond will mean no tax hassles as any tax is paid within the investment bond. But it was made clear that this is not a last minute measure, but one to be taken nice and early (I'm 62) while you are in good health.

    Heads you win, tails your family win.
  • A rather gullible/vulnerable relative has recently bought one of these schemes. We feel that it is inappropriate to her situation - she has very little money or assets to protect, and no obvious heirs. Is there any way she can back out of it? Can one argue that it has been 'mis-sold'?
  • Are there any further recommendations of companies operating family protection trusts as we are currently looking at the option for my elderly parents.
    thanks
  • John_Pierpoint
    John_Pierpoint Posts: 8,396 Forumite
    Part of the Furniture 1,000 Posts
    edited 7 January 2013 at 10:31AM
    Can anyone give me a legal definition of a family protection trust ?

    I have a nasty feeling it is just marketing hogwash?

    Hopefully we have now entered an environment where charges have to be taken up front and not sliced off the resulting "advised" investments?

    The term "family protection trust" is meaningless in both legal and tax terms; protection trusts are defined in TA 1925 s 33 but such are irrelevant for present purposes.
    Read more at http://www.taxationweb.co.uk/forum/family-protection-trust-avoiding-care-home-fees-t33764.html#gjrA4bCuQIsZ3PvW.99

    The only effective way to protect you inheritance when the last parent is already "elderly"; it to care for them yourself. Which may well be what they would wish.

    Though you have to overcome the health professionals who have their own agenda:
    "You won't be able to do this. Some families think they can care for their relatives in these circumstances, but it never works".

    Fortunately I was able to cap that with an even more worrying remark over 4 years later.
  • The family protection trust worked for WeeGems mum who posted on this thread and her mum went into a care home within 2 years of setting it up.

    For my parents, if this can be done jointly, it was surely give the one not needing care more peace of mind if it means that income would be available to top up to provide care in a better home etc and the worry of a legal charge on their home from the Council, presumably making it difficult if the remaining parent needs to relocate.
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