When Trust Fails: The McClure Solicitors Collapse and What It Reveals About Asset Protection
Written by Amy Douch | Wills, Trusts, Tax and Probate team | 21 October 2025
The collapse of McClure Solicitors in 2021 left thousands of clients across the UK facing uncertainty, confusion, and in some cases, financial loss. Many had trusted the firm to protect their homes, estates and families through what were marketed as “Family Protection Trusts.” When McClure went into administration, it quickly became clear that many of these trusts were far more complex and problematic than clients had been led to believe.
For anyone considering using trusts as part of their estate planning, the McClure case serves as an important lesson in how things can go wrong, and what to watch out for.
What happened to McClure Solicitors?
McClure Solicitors had built a large client base across Scotland, England and Wales by offering low-cost or free wills and promoting trusts as a way to protect family homes from care fees, reduce inheritance tax, and make passing assets to loved ones easier. The firm’s marketing suggested that Family Protection Trusts could shield assets from future costs or challenges, and that transferring property into these trusts would provide peace of mind.
When the firm went into administration, thousands of clients suddenly found themselves in a legal and financial mess. Their trusts and wills were left in limbo, documents were difficult to retrieve, and property transactions stalled. The company’s client files and some assets were transferred to another law firm, but many clients found that communication was slow and guidance unclear.
For many families, the promises of safety and simplicity turned into years of frustration. Some discovered that their homes could not be sold or transferred because McClure staff members were still listed as trustees. Others learned that the trusts they had set up might not provide the protection they were promised, and in some cases could even lead to unexpected tax or care fee implications.
How former clients have been affected
The collapse of McClure Solicitors left a trail of distress and confusion that is still being untangled today. Many clients believed they were acting responsibly when they set up a Family Protection Trust, only to later discover that these structures could not deliver what had been promised.
Some clients were shocked to learn that their properties were legally owned by the trust, not by them. When they later tried to sell, they needed the cooperation of trustees — often former McClure employees — to complete the transaction. In some cases, trustees requested additional payments to remove themselves from property deeds or to approve sales.
Others were told their trusts would protect them from care fees, only to find that local authorities viewed the transfers as deliberate attempts to avoid paying for care. As a result, the value of their property was still counted when assessing care home funding. Families dealing with bereavement also faced delays in administering estates where trusts were involved, adding unnecessary stress at already difficult times.
The emotional impact of these problems should not be underestimated. Many people reported sleepless nights, anxiety and financial worry while trying to understand complex legal arrangements that had never been properly explained to them.
Why the regulators got involved
The issues caused by McClure’s collapse were so widespread that regulators in both Scotland and England launched investigations. The Solicitors Regulation Authority (SRA) and the Law Society of Scotland became involved to ensure that client files were managed correctly and that outstanding legal matters were completed.
A successor firm took on responsibility for many of McClure’s former clients under the supervision of the regulators. However, delays and communication problems persisted, and complaints continued. The situation highlighted how difficult it can be to protect clients when a law firm collapses and how limited regulatory powers can be once a firm is no longer operating.
The key lessons about trusts and asset protection
The McClure case is more than just an unfortunate event in the legal world. It is a wake-up call for anyone thinking about setting up a trust or using asset protection schemes.
1. Trusts are not a guaranteed form of protection
A trust can be a useful estate planning tool, but it is not a magic solution. Some advisers claim that trusts can automatically protect your home from care fees or inheritance tax, but in reality, this is not always the case. Local authorities can challenge transfers that appear to have been made deliberately to avoid paying for care. Similarly, poorly drafted trusts can trigger unexpected tax consequences or make future transactions far more complicated than expected.
Before setting up any trust, it is crucial to understand its purpose, benefits, and limitations. Always ask your solicitor to explain how it will work in your specific circumstances and what risks are involved.
2. Understand who controls your assets
When you transfer property into a trust, you are changing who legally owns it. Control of the property passes to the trustees, even if you are one of them. If a solicitor or firm acts as trustee, their name may appear on the property’s title deeds. This means you might need their permission to sell or transfer the property later.
In McClure’s case, many clients found that former employees were named as trustees and refused to step down without charging a fee. This caused serious delays and distress for families who needed to access or sell their property.
3. Beware of one-size-fits-all solutions
Estate planning should always be personal. McClure’s model relied heavily on selling the same trust products to large numbers of clients, often through sales representatives rather than through one-to-one legal advice. Many clients did not fully understand what they were signing or how the trusts would affect their ownership and control of their homes.
If any adviser recommends a particular structure or product without first understanding your finances, family situation and goals, take that as a warning sign. Every trust should be tailored to your circumstances, not copied from a template.
4. Make sure you can remove or replace trustees
A well-drafted trust should include a clear process for removing or replacing trustees if something goes wrong. Without that flexibility, you could find yourself trapped in an arrangement that is impossible to change. Always check this before signing, and ensure your solicitor explains who will act as trustee and what their responsibilities are.
5. Check regulation and accountability
Many clients affected by McClure assumed that regulators could easily step in to resolve the situation. In practice, regulators’ powers are limited once a firm closes. Compensation schemes and insurance can sometimes help, but only under specific conditions. That is why it is vital to choose a regulated solicitor who provides clear written advice, a transparent fee structure, and accountability for their work.
What to do if you were a McClure client
If you are a former McClure client, or if you have a Family Protection Trust set up by the firm, it is sensible to take independent legal advice. An experienced solicitor can review your documents, confirm who your trustees are, and explain whether your trust is still operating correctly.
You may wish to:
Request copies of your trust documents, will, and title deeds.
Ask a solicitor to review whether your trust offers the protection you were promised.
Explore options for removing trustees if necessary.
Check whether you have grounds for a complaint or compensation claim.
Taking action now can prevent further issues in the future, especially if you plan to sell a property or update your will.
The wider implications for estate planning
The McClure collapse is one of the most significant events in UK private client law in recent years. It has raised questions about how complex legal products are marketed to the public and how well clients understand what they are signing.
For law firms, it is a reminder of the responsibility that comes with trust work. Clear communication, honest advice and transparency are essential to maintaining public trust in the legal profession. For clients, it shows that no matter how reputable a firm may appear, it is still important to seek independent advice, ask questions, and ensure you fully understand every document before signing.
Trusts and estate planning can still be highly effective when done properly, but they must be based on tailored advice and informed consent — not on mass marketing or unrealistic promises.
Final thoughts
The McClure Solicitors collapse exposed deep flaws in how some legal services were being sold, but it also offers valuable lessons for the future. For individuals, the key takeaway is simple: never hand over control of your assets without understanding exactly what it means. For professionals, it reinforces the importance of ethical practice and the duty to explain complex arrangements in plain language.
For those affected, help is available. Specialist solicitors can review your situation, untangle any remaining issues, and help you regain control of your estate planning. For those considering a trust now, the best protection is knowledge, understanding what you are signing and working with advisers who put your interests first.
Contact us
The administration of McClure Solicitors has had a huge impact on their former clients, which has resulted in stress and worry. It’s important that you seek professional advice as soon as possible to ensure your trust is working for you. Our team of experienced and knowledgeable solicitors has worked with many former clients of McClure, helping them put things right for themselves and their loved ones. If you’d like to discuss your circumstances, please get in touch with us directly by either calling 01752 827067 or emailing trusts@nash.co.uk. We’ll do all we can to help you.
