Error with "Asset Protection Trust"

We have been instructed by an elderly client whose late son facilitated contact with an Estate Planning company. Following a review of the documents, we can see that he created a flexible life interest trust with him as life tenant and son as remainderman. He then completed a declaration of trust saying that he held 100% of the equity in his property for the trustees of a trust - the problem being that this was not the trust that he had created but clearly a trust created by another client (referring to that client’s name rather than his)!

Beyond advising him to go back to the company to rectify this - any thoughts as to next steps. Is an application to court required to set this aside as a mistake. This would seem heavy handed for what is a clumsy error by the company.

“Clumsy”, yes, but with significant consequences.

In particular, if the declaration of trust has been registered with HM Land Registry any disposal of the property will require the involvement of the trustees of the “wrong” trust.

I suggest an application for rectification of the declaration should be initiated, and the estate planning company (and its insurers) notified.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

I would hope the company would agree to pay the costs of an application assuming the error is conclusively theirs. They will surely do so if they receive their own advice that a court will so order.

Jack Harper