For many people, trusts are a useful way to assist in tax planning and to preserve assets. There are various types of trusts, and they can be created during your lifetime or by your will.
Trusts
In short
A trust is a legal arrangement where one or more people (trustees) hold and manage assets on behalf of someone else (a beneficiary), according to rules set out by whoever created it (the settlor). In everyday terms, trusts let you control who benefits from your money or property, when, and under what conditions — commonly used for tax planning, protecting assets, and providing for children or vulnerable family members. Call 08082747557 for a free initial assessment.
Why people set up trusts
Trusts are a tax planning and asset preservation tool, and they can be created during your lifetime or through your will. Common reasons our clients set one up include:
- Protecting an interest in a property purchase — for example, where two people contribute unequal amounts and want that reflected legally
- Safeguarding assets from bankruptcy or divorce — ring-fencing inheritance for your children even if their own marriage or finances run into difficulty
- Controlling a child's or grandchild's inheritance — releasing funds at a chosen age, or for a specific purpose such as education, rather than as a lump sum at 18
- Providing for a vulnerable or disabled beneficiary without affecting their entitlement to means-tested benefits
- Business succession — passing on business assets in a structured, tax-efficient way
Key roles in a trust
- Settlor — the person who creates the trust and decides its terms
- Trustee — the person or people who legally hold and manage the trust assets
- Beneficiary — the person or people who benefit from the trust
- Protector (optional) — someone appointed to oversee the trustees and ensure they act in the beneficiaries' best interests
Trusts and your will
Many trusts are created through a will rather than during your lifetime — this is exactly what our Protector Plus will product is designed for, covering life interest trusts, delayed inheritance, and provision for disabled beneficiaries. If your estate is also above the Inheritance Tax threshold, see Financial Protector and our full guide to inheritance and tax planning.
Thinking a trust might be right for your family? Call 08082747557 for a free initial assessment.
How QualitySolicitors can help
Our solicitors advise on trust creation and administration, including:
- Life interest trusts (for example, a home held for a surviving partner, passing to children afterwards)
- Discretionary trusts, where trustees have flexibility over distributions
- Trusts for vulnerable or disabled beneficiaries
- Bare trusts for straightforward gifts to minors
- Ongoing trust administration and trustee duties
Related Services
- Provide for a disabled or vulnerable beneficiary in a will Protector Plus will
- Combine trust planning with inheritance tax planning Financial Protector
- Reduce inheritance tax or plan for the future Inheritance and tax planning
- Write or update a will Making a will
- Deal with an estate after a death (probate) Estate administration
- Appoint someone to manage your affairs in future Power of attorney
- Back to Wills & Probate Wills & Probate