Trust Services
Protect assets for future generations and ensure your wealth is managed according to your wishes.
What is a Trust?
A trust is a legal arrangement where assets are held by trustees for the benefit of specified beneficiaries. Think of it as a protective wrapper around your assets that gives you control over how, when, and to whom they're distributed.
Trusts aren't just for the wealthy. They're a practical tool for anyone who wants to protect assets, provide for family members in specific ways, or ensure their wishes are followed even after they're gone.
Why Consider a Trust?
Protect Your Family Home
One of the most common reasons people create trusts is to protect their share of the family home. If your spouse needs care later in life, their entire estate (including your half of the house if you've left it to them outright) could be assessed for care costs. A property protection trust can ring-fence your share for your children.
Provide for Vulnerable Beneficiaries
If you have a family member with disabilities, mental health issues, or addiction problems, leaving them money directly might not be in their best interests. A discretionary trust allows trustees to provide for their needs without giving them direct access to the capital, and without affecting their benefits.
Protect Beneficiaries from Divorce
If your children inherit assets and later divorce, those assets could be divided with their ex-spouse. A trust can protect inheritances by keeping them separate from marital property.
Control Spending
If you're concerned about a beneficiary's ability to manage money, whether due to age, inexperience, or spending habits, a trust allows you to specify how and when they receive their inheritance.
Inheritance Tax Planning
Some trusts can help reduce inheritance tax liability. While the rules are complex and professional advice is essential, trusts can be part of an effective tax planning strategy.
Common Types of Trusts
Property Protection Trust
Also known as a life interest trust, this protects your share of the family home while allowing your surviving spouse to continue living there. When they pass away or move into care, your share passes to your chosen beneficiaries (usually children) rather than forming part of the surviving spouse's estate.
Discretionary Trust
This gives trustees flexibility to decide how and when to distribute assets to a group of potential beneficiaries. It's useful when you want to protect vulnerable beneficiaries, accommodate changing circumstances, or haven't decided exactly how to divide your estate.
Flexible Life Interest Trust
This combines elements of life interest and discretionary trusts. It provides income or use of assets to a primary beneficiary while protecting the capital for others.
Disabled Person's Trust
Specifically designed for beneficiaries receiving means-tested benefits, this trust allows them to benefit from your estate without losing their entitlement to state support.
Who Might Benefit from a Trust?
- Homeowners who want to protect their property for their children
- Parents with young children who need guardians to manage their inheritance
- Anyone with family members who receive means-tested benefits
- People concerned about a beneficiary's ability to manage money
- Those in second marriages wanting to provide for both their spouse and children from a previous relationship
- Anyone wanting to protect inheritances from divorce or creditors
- Business owners wanting to pass on their business in a controlled way
Frequently Asked Questions
Can a trust protect my home from care fees?
A trust can protect your share of the home from being included in your surviving spouse's care assessment, but it won't protect the home if you yourself need care. The rules around care funding are complex, and deliberately depriving yourself of assets can be challenged. However, a property protection trust created for legitimate estate planning reasons (not to avoid care fees) can still be valuable.
Who can be a trustee?
Trustees can be family members, friends, or professionals. They should be people you trust to manage the assets responsibly and make decisions in the best interests of beneficiaries. Many people appoint adult children as trustees, sometimes alongside a professional trustee.
Are trusts expensive to set up?
The cost depends on the type and complexity of the trust. Many trusts are created as part of a will at relatively low cost. I'll explain your options and provide clear pricing during your free consultation.
Can I change a trust after it's set up?
It depends on the type of trust. Some trusts (particularly those in wills) can be changed while you're alive. Once certain trusts become active, changes may be limited. This is why it's important to think carefully about your wishes when setting up a trust.
Do I need a trust if I have a simple estate?
Not necessarily. Trusts add complexity and aren't right for everyone. If you have a simple situation with no concerns about protecting assets or vulnerable beneficiaries, a straightforward will may be all you need. I'll help you understand whether a trust would benefit your situation during our consultation.
Protect What You've Built
Book a free consultation to discuss whether a trust could benefit your family.