From a tax perspective, these structures usually fail to achieve inheritance tax savings because of the "gift with reservation of benefit" rules. In essence, the home is still treated as forming part of a person's estate, even though it is technically not owned by them anymore. While there are potentially options available to mitigate against these rules, in my experience they are rarely considered or implemented by the firms promoting these trusts.

There are other tax pitfalls as well: a potential entry charge of 20% if the value of the home being placed into trust exceeds the nil-rate band (currently £325,000 per person, or £650,000 for a married couple); the loss of the residence nil rate band; risks of capital gains tax charges if the home is sold; and exit charges if the trust is collapsed.

It’s also worth noting that if one spouse goes into care while the other remains in the family home, that property is generally disregarded for means-testing purposes - the need to protect the home from care costs is often overstated.

There’s also the broader question of why someone would try to shield assets from care, given that state-funded care often means fewer choices and potentially lower care quality than self-funding. With the current threshold for paying for care set at £23,250, those relying on state funding may find their options limited.

As ever, the devil is in the detail with these trust structures, and there are often subtle differences in the trust drafting between the different businesses that market them.

Unfortunately, the legal, compliance and tax costs of unwinding these structures (if that is the appropriate course of action) is typically a lot less than the legal costs of formally setting aside the structure and/or pursuing the firm that mis-sold it in the first place.

1. Beware of advertising in local newspapers and magazines offering big tax savings or discounts for bundled products. If it sounds too good to be true, it probably is.

2. Watch for jargon like “asset protection”, “family protection”, or “property protection” - reputable firms don’t use these terms.

3. Insist on written advice explaining how the trust works and why it’s suitable.  Lack of proper advice is a common theme in these cases.