Trust Services
Protect your assets and provide for your loved ones with professionally structured trusts. Whether you want to safeguard your family home, provide for vulnerable beneficiaries, or plan for the future, we will help you find the right trust solution for your circumstances.
What is a Trust?
A trust is a legal arrangement where you (the settlor) transfer assets to be held and managed by one or more people (the trustees) for the benefit of others (the beneficiaries). Think of it as a secure container for your assets with clear rules about who benefits and when.
When you create a trust, you set out the terms in a legal document called a trust deed. This specifies who the trustees are, who the beneficiaries are, and the rules for how the trust should be managed and distributed.
The Settlor
The person who creates the trust and transfers assets into it. This is you, the person setting up the trust to protect your wealth for others.
The Trustees
The people responsible for managing the trust assets according to the trust deed. They have a legal duty to act in the best interests of the beneficiaries.
The Beneficiaries
The people who benefit from the trust, whether through receiving income, capital, or the right to use trust assets like a property.
Types of Trusts and Their Purposes
Different trusts serve different purposes. Here are the most common types we help clients set up, each designed to meet specific needs.
Property Protection Trusts
Specifically designed to protect your share of a property, often used alongside severance of tenancy. Ensures your share of the family home passes to your chosen beneficiaries rather than being absorbed into a surviving partner's estate.
Discretionary Trusts
Trustees have discretion over who receives what and when from a pool of potential beneficiaries. Ideal for protecting assets from divorce, bankruptcy, or when beneficiaries cannot manage money themselves.
Life Interest Trusts
One beneficiary (often a spouse) has the right to benefit from assets during their lifetime, after which the assets pass to other beneficiaries. Perfect for protecting children's inheritance in second marriages.
Disabled Persons Trust
A trust specifically designed to hold assets for a beneficiary with a disability, without affecting their entitlement to means-tested benefits. This ensures your loved one is provided for while preserving their access to essential state support.
Who Benefits from Trusts?
Trusts are not just for the wealthy. They are practical tools for anyone who wants more control over how their assets are used and protected. You might benefit from a trust if you:
Have Complex Family Situations
Blended families, second marriages, or estranged relatives can make inheritance planning complicated. Trusts allow you to provide for a current spouse while ensuring your children from a previous relationship ultimately inherit your assets.
Want to Protect Vulnerable Beneficiaries
If you have a beneficiary with a disability, mental health challenges, addiction issues, or simply poor money management skills, a trust can provide for their needs without giving them direct control of a lump sum that could be quickly depleted or affect their benefits.
Are Concerned About Care Fee Planning
While you cannot simply hide assets from care fee assessments, legitimate trust planning done at the right time and for the right reasons can form part of a wider strategy to protect some of your wealth for future generations.
Want to Protect Against Future Risks
Assets held in trust can be protected from a beneficiary's divorce, bankruptcy, or poor financial decisions. This is particularly valuable if you want to ensure your hard-earned wealth stays in the family.
Trusts vs Wills: Understanding the Difference
Many people ask whether they need a trust or a will. In most cases, the answer is both, as they serve different but complementary purposes.
A will is your foundational estate planning document. It covers everything you own at death, appoints guardians for minor children, names executors, and specifies how your estate should be distributed. Without a will, intestacy rules decide who inherits, which may not match your wishes.
A trust provides additional control and protection for specific assets or situations. It can operate during your lifetime or be created within your will to take effect on death. Trust assets are managed according to your detailed instructions rather than passing outright to beneficiaries.
When You Need Both
- Your will can create a trust that only comes into effect when you die
- Lifetime trusts work alongside your will for comprehensive planning
- Your will acts as a safety net for any assets not held in trust
- Together they provide maximum protection and flexibility
The Setup Process with Your Estate Planner
Setting up a trust might sound complex, but we guide you through every step, explaining everything in plain English.
Free Initial Consultation
We start with a no-obligation conversation about your circumstances, your concerns, and what you want to achieve. This can be via video call or over the phone. We will explain whether a trust is right for you and which type would best meet your needs.
Detailed Planning
Once you decide to proceed, we work through the details together. Who should be trustees? Who are the beneficiaries? What are the rules for distribution? We will help you think through all the scenarios and make informed decisions.
Document Drafting
We prepare the trust deed and any related documents, such as an updated will or severance of tenancy if needed. You will receive drafts to review, and we will explain every clause so you understand exactly what you are signing.
Execution and Registration
We arrange a meeting to sign the documents with proper witnessing. If the trust needs to be registered with HMRC, we will guide you through that process. You will receive certified copies and clear instructions on what happens next.
Ongoing Support
We do not disappear after the paperwork is signed. we are here to answer questions, help with future changes if your circumstances change, and provide guidance to your trustees when needed.
Frequently Asked Questions About Trusts
Here are answers to the most common questions we receive about trusts and trust planning.
A will takes effect after you die and goes through probate, making it a public document. A trust can take effect during your lifetime or upon death, and assets held in trust typically pass outside of probate, offering more privacy and often quicker distribution. Trusts also provide greater control over how and when beneficiaries receive assets, which is particularly useful for protecting vulnerable beneficiaries or managing complex family situations.
For most people, a well-drafted will is sufficient for basic estate planning. However, you may benefit from a trust if you want to protect assets for vulnerable beneficiaries, have concerns about care home fees, own a business, have a blended family, or want to protect your share of property for specific beneficiaries. During your free consultation, we can assess your circumstances and advise whether a trust would benefit your situation.
This is a common question, but the answer requires careful consideration. Local authorities can look back at any deliberate deprivation of assets, which includes transferring your home into a trust specifically to avoid care fees. However, trusts set up for genuine reasons such as protecting your share of the property for your children can be legitimate. Timing is crucial, as arrangements made well before any care needs arise are viewed more favourably. We always recommend honest conversations about your motivations and circumstances.
A trustee must be over 18, of sound mind, and not bankrupt. You can appoint family members, friends, or professional trustees such as solicitors or trust companies. Many people appoint two or more trustees to share the responsibility. It is important to choose people you trust completely, as they will have significant responsibilities in managing the trust assets for the beneficiaries. Professional trustees charge fees but bring expertise and impartiality.
Trust taxation can be complex and depends on the type of trust. Income generated within a trust may be subject to income tax at special trust rates. Some trusts may be subject to inheritance tax when assets are transferred in, at ten-year anniversaries, and when assets are distributed. Capital gains tax may also apply when trust assets are sold. The tax treatment varies significantly between different trust types, so it is essential to get professional advice on the tax implications for your specific situation.
Related Services
Trusts often work alongside other estate planning documents for comprehensive protection.
Ready to Protect Your Family?
Book your free consultation today. We'll take the time to understand your circumstances and explain how we can help.