A flexible tool for protecting and passing on what matters.
From Discretionary Trusts to Vulnerable Beneficiary Trusts, we explain which trust suits which circumstances and draft accordingly.
A trust is a legal arrangement where one person (or several) holds assets for the benefit of another. Trusts are used in estate planning to protect assets for vulnerable beneficiaries, to ring-fence money for grandchildren, to reduce Inheritance Tax exposure, or to keep wealth in the family across generations. Different trusts do different things; we explain which trust suits which circumstances.
What trusts actually do.
A trust separates ownership from benefit. The trustees own the assets in law; the beneficiaries are entitled to benefit from them under the trust's terms. That separation is what makes trusts so flexible: they let you provide for someone without handing them control, ring-fence assets from creditors or future divorce, or smooth the passage of wealth across generations.
Trusts are not a tax dodge, and we will not pretend they are. Used properly, they are part of a careful estate plan. Used badly, they create cost, complication and tax inefficiency. The starting question is always 'what are you trying to achieve?', not 'should we set up a trust?'.
The trusts we use most often.
Discretionary Trust
Trustees decide which beneficiaries from a defined class receive what, and when. Used for protecting assets, supporting vulnerable beneficiaries, and Inheritance Tax planning.
Life Interest Trust
One beneficiary (the 'life tenant') receives the income from the trust during their lifetime; on their death, the capital passes to other beneficiaries. Common for second marriages and protecting children's inheritance.
Vulnerable Beneficiary Trust
Designed to support a beneficiary with a disability or vulnerability, often with tax advantages. Used to provide for the beneficiary without affecting their entitlement to means-tested benefits.
Property Protection Trust
Often built into a Will to protect a share of the family home for children when one spouse dies, while allowing the surviving spouse to continue living there.
Disabled Person's Trust
A specific tax-advantaged trust for beneficiaries who meet HMRC's definition of 'disabled person'.
Bare Trust
The simplest form of trust. The beneficiary becomes absolutely entitled to the assets at age 18.
Trusts inside Wills, and trusts created during life.
Most trusts in estate planning are created within a Will and come into effect on death (a 'Will trust'). Some clients also set up trusts during their lifetime, often to remove assets from their estate for IHT purposes or to start passing wealth to the next generation gradually.
Both approaches have their place. We advise on which is right for your circumstances and what each will cost over time, including the trust's own ongoing administration.
Trusts have their own tax regime, in plain English.
Trusts are taxed differently from individuals. The right trust can be very tax-efficient. The wrong trust can be very tax-inefficient. We explain the tax position of each trust we recommend, in plain English, before any decision is made, including any periodic charges, exit charges and income tax considerations that apply.
How trusts are priced.
Trust drafting fees depend on the trust type and complexity. We always provide a clear written quote after a free consultation. For Will trusts, the cost is included within the Will quote.
A clear process, from consultation to signing.
- 01
Free consultation
A no-obligation conversation about your circumstances and what you want to achieve. We listen, ask the right questions and explain your options.
- 02
Tailored advice and quote
Once we understand what you need, we explain what we recommend and why, and we give you a clear written quote. You decide whether to proceed.
- 03
Drafting and review
We draft your documents from scratch, tailored to you. We send them to you to read, walk you through anything you want explained and adjust anything that is not quite right.
- 04
Signing and storage
We guide you through the signing process, which has to be done correctly for the document to be valid. Secure storage is offered, so the original is never lost.
Common questions.
Anyone over 18 with mental capacity. Trustees take on legal duties, including a duty to act in the beneficiaries' best interests, to follow the trust's terms, and to keep accounts. Most people appoint family members, friends, or professional trustees, often a mix.
At least two is usually advisable, particularly for trusts holding land or property, where two trustees are required to give a valid receipt. Four is the maximum for most trusts.
It depends on the type of trust. Some trusts have provisions allowing trustees or settlors to make changes; others are fixed. Trusts can sometimes be varied with the agreement of all beneficiaries, or by Court order. We design trusts with appropriate flexibility built in.
Most express trusts have to register with HMRC's Trust Registration Service, regardless of whether they are liable to tax. We handle the registration, or guide trustees through it, as part of setting up the trust.
Sometimes. Lifetime gifts into trust may fall outside your estate after seven years, subject to the rules. Discretionary Will trusts can shelter assets from the survivor's estate. The right answer depends on the size of your estate and your objectives. We model the IHT impact before recommending a structure.
Most trusts have some ongoing administration: trustee meetings, accounts, tax returns where applicable. Costs vary with complexity. We give a clear estimate of ongoing costs alongside the set-up quote so there are no surprises.
“A good trust is invisible to the people it protects. They get what they need, when they need it, without ever feeling controlled.”
What clients often need alongside this.
Will writing
A properly drafted Will makes your wishes clear, protects the people you love and saves your family from unnecessary stress. Single Wills, Mirror Wills, Complex Wills.
Read moreInheritance Tax planning
With careful planning, much of an estate can be passed on without an unnecessary tax bill. We work with you, and your other advisers where helpful, to plan properly.
Read moreLasting Powers of Attorney
A Lasting Power of Attorney lets you choose who makes decisions for you if you cannot make them yourself. Both types: property and finances, health and welfare.
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A free consultation is the easiest place to start.
Thirty minutes with a qualified consultant, no obligation, with a clear sense of your options at the end.
Or call us on 01304 577 998