What Is a Trust and Do I Need One? A UK Guide for Families

Mention the word "trust" and many people picture something reserved for the very wealthy — offshore accounts, complex tax structures, family fortunes. In reality, trusts are a practical, everyday tool used by ordinary families across the UK, often set up simply and affordably within a will.

Here is a plain English explanation of what a trust is, the main types used in will planning, and how to know whether you might need one.

What Is a Trust?

A trust is a legal arrangement where one or more people — the trustees — hold and manage assets on behalf of someone else, the beneficiary, according to rules set out by whoever created the trust (the settlor). When a trust is created within a will, it only comes into effect after the person who made the will has died.

Rather than a beneficiary receiving an inheritance outright, the assets are held and managed by the trustees, who release money or property to the beneficiary according to the terms you set — whether that is at a certain age, for specific purposes, or at the trustees' discretion.

Common Types of Trust Used in Wills

Life Interest Trusts

A life interest trust gives one beneficiary — often a surviving spouse — the right to benefit from an asset (commonly a house, or income from investments) for their lifetime, while the underlying asset ultimately passes to someone else, such as children, when that beneficiary dies. This is a popular solution for second marriages or blended families, allowing a surviving partner to remain in the family home while ensuring it eventually passes to your own children.

Discretionary Trusts

A discretionary trust gives trustees flexibility to decide how and when to distribute assets among a group of potential beneficiaries, rather than fixing shares in advance. This flexibility is valuable when circumstances are likely to change — for example, providing for grandchildren whose needs are not yet known, or protecting a beneficiary who may be vulnerable to financial pressure or poor decision-making.

Bare Trusts

A bare trust is the simplest form — the trustee holds the asset purely on behalf of a named beneficiary, who has an absolute right to it once they reach 18. These are often used to hold money for children until they reach adulthood, without the additional flexibility of a discretionary trust.

Why People Use Trusts

Protecting Assets from Care Home Fees

Certain trust structures, set up in good time, can help protect part of a couple's assets — particularly the family home — from being fully assessed for means-tested care home fees in later life. This is a nuanced area and needs careful, individual advice, but it is one of the most common reasons families look into trusts.

Providing for Children or Vulnerable Family Members

A trust lets you control when and how children receive their inheritance, rather than handing over a lump sum the moment they turn 18. It is equally valuable for providing for a family member with a disability or vulnerability, without affecting their entitlement to means-tested benefits.

Inheritance Tax Planning

Certain trusts can play a role in reducing a future inheritance tax bill, particularly for larger estates. Our guide to inheritance tax thresholds and rates explains how the nil-rate bands work alongside trust planning.

Protecting Against Remarriage

A life interest trust can ensure that if your surviving partner remarries, your share of the estate still ultimately passes to your children rather than potentially being absorbed into a new marriage and, eventually, someone else's family.

Do You Need a Trust?

Not every will needs a trust, and for many straightforward situations — particularly couples leaving everything to each other and then to adult children in equal shares — a simple will without a trust is entirely appropriate, such as the arrangement described in our guide to mirror wills for couples.

A trust is worth discussing if any of the following apply to you:

• You have children from a previous relationship and want to protect their inheritance
• You want to provide for a vulnerable or disabled family member
• You are concerned about future care home fees
• You want to control when children or grandchildren receive money, rather than handing it over at 18
• Your estate is large enough that inheritance tax planning is worthwhile

What Does a Trust Cost?

Setting up a simple trust within your will typically adds a modest amount to the cost of drafting the will itself, and is far more affordable than most people expect — nothing like the cost associated with complex offshore trust structures. The right approach depends entirely on your circumstances, which is why a proper conversation matters more than a fixed price list.

How Abrahams Wills Can Help

As a member of The Society of Will Writers, I help families across Richmond, Hounslow, and Ealing understand whether a trust makes sense for their situation, and if so, build it properly into a clear, professionally drafted will. I offer home visits 7 days a week, so we can talk through your family's specific circumstances at home, without rushing the conversation.