Posted: Tuesday, 18 November 2025 @ 09:15
When planning for the future, many people think of a Will as a simple instruction manual—a document that says who gets what. But what if you need more control? What if you want to provide for loved ones while protecting assets for the long term? This is where trusts come into play.
Think of a trust as a protective vault within your Will. Instead of giving assets directly to someone, you place them in this vault with specific instructions about how and when they should be accessed. It's a powerful tool that offers control, protection, and peace of mind.
What Exactly is a Trust in a Will?
A trust involves three key roles:
- The Settlor - That's you, the person creating the trust and putting assets into it
- The Trustees - The reliable people you choose to manage the trust according to your instructions
- The Beneficiaries - The people who will ultimately benefit from the trust assets
It's like appointing reliable caretakers to manage a family treasure according to your specific wishes.
Common Types of Trusts in Wills
👨👩👧👦
Life Interest Trust (Right to Reside)
Imagine giving someone the keys to a house for their lifetime, while ensuring it eventually passes to your chosen heirs. This trust allows a spouse or partner to live in and benefit from a property during their lifetime, while protecting the capital for your children or other beneficiaries.
Protects your share of the property for your children if your spouse remarries
Can help with care home fee planning
Provides security without giving away ownership
🧒
Bare Trusts for Young People
Like a timed treasure chest that opens when the keyholder reaches a certain age. Assets are held in trust for children or young adults until they reach a specified age (usually 18 or 21).
Prevents young people from inheriting large sums before they're ready
Assets are legally theirs but managed by trustees until the right time
Simple and straightforward to administer
🛡️
Discretionary Trusts
Think of this as a family fund where trustees have flexibility. Instead of naming specific gifts, you create a pot of assets that trustees can distribute among a group of beneficiaries as they see fit, based on changing circumstances.
Perfect for vulnerable beneficiaries who may need ongoing support
Useful for business assets or complex family situations
Provides maximum flexibility for changing family needs
Why Consider a Trust? The Key Benefits
Trusts aren't just for the wealthy—they're practical tools that solve real family concerns:
🛡️ Protection
Shields assets from potential future risks like divorce, bankruptcy, or remarriage. It's like putting a protective fence around your family's inheritance.
🎯 Control
Allows you to set specific conditions about how and when assets are used. You can ensure money is used for education, or that a property remains in the family.
💰 Tax Efficiency
When structured properly, trusts can help manage Inheritance Tax liabilities and protect family wealth across generations.
👥 Support for Vulnerable Relatives
Provides for loved ones with disabilities or those who may not be able to manage large sums of money independently.
How Trusts Work: The Journey of Your Assets
1. You create the trust in your Will with clear instructions
2. Your chosen trustees are appointed after you pass away
3. Assets are transferred into the trust
4. Trustees manage the assets according to your wishes
5. Beneficiaries receive benefits as you specified
Important Considerations
While trusts offer significant benefits, they also come with responsibilities:
- Choosing the right trustees is crucial—they should be reliable and financially sensible
- Trusts require ongoing administration and may have tax reporting requirements
- Professional advice is essential to ensure the trust is properly established and meets your goals
- There may be tax implications when setting up and managing trusts
Is a Trust Right for Your Family?
Consider a trust in your Will if:
- You have children from a previous relationship
- You want to provide for a partner but ensure assets eventually pass to your children
- You have young children who might inherit before they're ready to manage money
- You have family members with disabilities or special needs
- You're concerned about care home fees or want to protect family wealth
- You have business assets that need special handling
Trusts in Wills are like creating a personalized roadmap for your family's future. They ensure your assets not only reach the right people, but do so at the right time and in the right way.
Next Steps: Every family situation is unique. The best way to determine if a trust is right for you is to speak with a professional Willwriter who can explain the options in plain English and help you create a plan that matches your wishes and protects your loved ones.
Professional Guidance Recommended: This article provides general information about trusts in Wills. Trust law can be complex, and the tax implications vary depending on individual circumstances. We recommend consulting with a qualified professional, such as a member of The Institute of Professional Willwriters, for advice tailored to your specific situation.