John Hopkins worked hard all his life as a commercial salesman and wanted to make sure he had something to pass on to his loved ones to enjoy.
Through careful saving, he managed to set aside a small nest egg in addition to the family home in Exmouth where he had lived for 30 years.
So, in 2019, John, a widower, approached an estate planner for help rewriting his will. He also asked if there were any other steps he should consider to secure his savings – then worth £40,000 – and his home, which was valued at £280,000.
John was sold a Family Protection Trust at a cost of £3,500, which he believed would protect his wealth from being ravaged by care fees, should he need it in later life, and from inheritance tax. These trusts are legal arrangements that allow you to remove money or assets from your estate and hold it for other people – typically family members.
But instead, when John died in 2023, the trust meant his family faced a bill of more than £50,000 in tax and extra costs. Without the trust, his family would not have paid a single penny.
