"There is no limit to the size of the trust, though there could be an issue with taxation. However, there is likely to be a fee for the solicitor to process funds in and out of the trust bank account for a client."
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Can I set up a family protection trust to avoid paying care costs?
You cannot set up a trust with the purpose of avoiding having to pay for your residential care.
This is called deprivation of assets. If the local authority thinks there has been deliberate deprivation to avoid care home fees, they can contest the trust in court, so the trust will not work and the assets will be assessed for residential care home fees.
Therefore, these trusts should not be set up where care fees are foreseeable. However, while avoiding care fees cannot be the reason for the family protection trust, it can be a benefit.