The claimant (M) created a settlement in February 2013 on the advice of her father and a solicitor. M was the life tenant. The settled property comprised two houses (S and G).

M’s father had helped M to buy S as her residence in 2001, by lending her the purchase price, and in 2004/05 he agreed to forego the loan. In April 2010, M moved out of S to be nearer her place of work. She found G, but had difficulty selling S. M’s father agreed to lend her the purchase price for G, subject to an agreement that the loan would be repaid at least partly from the sale proceeds of S, with any balance to be left outstanding for the foreseeable future. However, after purchasing G, M could still not sell S.

Subsequently, M’s father suggested the idea of placing both properties into a trust, as an asset protection measure. M did so, relying on her father and the solicitor to protect her interests, but without considering the tax