Trusts Within a Will - Added Protection and Flexibility
No two estates are the same. While a straightforward Will is suitable for many people, others require additional planning to reflect family circumstances, asset values or specific concerns about the future.
In these situations, incorporating a trust into your Will can provide added control, protection and reassurance. A Trust allows assets to be held and managed safely by appointed trustees, for the benefit of those you choose and in line with your wishes.
Below are examples of Trusts that may be appropriate depending on your objectives.
Inheritance Tax Planning Trust
This type of Trust may be suitable for unmarried couples whose combined estate exceeds the inheritance tax nil-rate band, currently £325,000.
The Trust can help ensure assets pass in a tax-efficient manner while preserving control over who ultimately benefits. A detailed letter of wishes is prepared alongside the Trust to guide the trustees in managing and distributing the assets in accordance with your intentions.
Flexible Life Interest Trust
A Flexible Life Interest Trust blends elements of both a life interest Trust and a discretionary Trust, allowing adaptability as circumstances change.
It can be particularly effective in:
- Safeguarding inheritances from divorce or financial difficulties of beneficiaries
- Preserving flexibility for trustees to respond to changing needs.
This structure is often used where protection and flexibility are equally important.
Right to Occupy Trust
A Right to Occupy Trust allows a named individual to remain living in a property for a specified period following your death.
This can be useful where, for example, an adult child or elderly relative lives with you and would otherwise face the risk of losing their home immediately on your death.
The trust provides:
- A defined period of occupation (such as two years)
- Time for the occupant to make arrangements and plan their next steps
- Certainty for ultimate beneficiaries, who will receive their share of the property once it is sold at the end of the occupation period.
Protective Property Trust
This type of trust can:
- Protect against changes to a surviving partner’s Will
- Safeguard assets if a surviving partner remarries or cohabits
- Provide reassurance that children will inherit as intended.
Our advice in this area includes guidance on severing a joint tenancy where appropriate.
Business Property Relief Trust
This trust can:
- Protect business assets from inheritance tax exposure
- Provide continuity and control
- Offer flexibility in how business interests are managed or passed on.
Whether this type of trust is appropriate will depend on the nature of the business and ownership structure. We assess suitability on a case-by-case basis and explain the options clearly.
Discretionary Trust
This can be particularly suitable where:
- A beneficiary is vulnerable or unable to manage money independently
- A beneficiary receives means-tested benefits
- There are concerns about addiction, debt or financial instability
- You wish to protect assets from future divorce or care costs.
Examples include:
- Supporting a disabled beneficiary without affecting benefits
- Ensuring funds are used responsibly for a beneficiary with substance dependency
- Long-term asset protection for future generations.
A detailed letter of wishes is included to guide trustees in how you would like the trust fund to be used.
Choosing the Right Trust
Trust planning should never be generic. We take time to understand your family dynamics, assets and concerns before recommending whether a trust is appropriate and, if so, which structure best meets your needs.
Our role is to ensure you are fully informed and supported, so you can decide what level of protection and planning is right for you.
