Guide to securing your legacy

Adaptable control, protection, and flexibility across generations

Welcome to our Guide to Securing Your Legacy.

Trusts have been used for centuries to manage and safeguard wealth, yet they continue to be amongst the least understood aspects of estate planning. Although often seen as complicated or solely for the very wealthy, a trust is simply a legal arrangement that separates ownership from control for the benefit of a beneficiary.

When properly constructed, trusts can regulate how assets are utilised, protect against creditors and disputes, prevent probate for enhanced privacy and faster proceedings, and reduce costs and family disagreements.

Today, with changing tax laws and increasingly varied family structures, such as blended families,
unmarried partners, and dependents with special needs, trusts remain essential for efficient and effective asset transfers. They provide precise control over timing and conditions, enable the inclusion of safeguards
or incentives, and can align with charitable or business succession aims. Whether protecting a home,
managing investments, or planning for incapacity, trusts offer adaptable control, protection, and flexibility
across generations.

Demystifying the structure of a trust

At its core, a trust is a formal arrangement involving three main parties. First, there is the ‘settlor’,
the person who establishes the trust and transfers assets into it, such as property, cash, or investments. Next are the ‘trustees’, the individuals or professionals appointed to oversee these assets according to the settlor’s instructions. Trustees have a legal obligation to act in the best interests of the final party, the ‘beneficiaries’, who are the people or organisations intended to benefit from the trust.

This simple yet powerful structure allows the settlor to determine the terms for how their wealth is managed and distributed long after they are gone. For instance, a settlor can specify that funds should only be used for a grandchild’s education or that a vulnerable relative receives a regular income for life. Because managing a trust involves significant legal and financial responsibilities, many people choose to appoint professional trustees, such as a solicitor or a trust company, to guarantee impartial governance and strict compliance with the law.

Navigating the different types of trusts

The UK legal system offers various trusts, each tailored for different situations. A ‘bare trust’ is the simplest type, where the beneficiary has an absolute right to the assets and income once they turn 18 (or 16 in Scotland). It is often used to hold assets for children. An ‘interest in possession trust’ grants a beneficiary (the ‘life tenant’) the right to receive income from the trust for their lifetime, but they cannot access the capital. After their death, the capital passes to other specified beneficiaries.

More adaptable options include ‘discretionary trusts’, where trustees possess broad powers to determine
which beneficiaries receive what, how much, and when. These are highly useful for adjusting to evolving family needs. Specialised trusts also exist, such as a ‘vulnerable person’s trust’ or a ‘disabled person’s trust’, which offer favourable tax treatment when established for beneficiaries who meet specific criteria. Lastly, ‘charitable trusts’ permit you to allocate assets to a cause you value, creating a lasting philanthropic legacy.

When a trust is the right solution

There are many situations where a trust is extremely useful. For blended families, a trust can ensure that a new spouse is cared for during their lifetime, while making sure that the original assets eventually go to the children from a previous relationship. They also form a key part of planning for beneficiaries who might be vulnerable because of age, disability, or an inability to manage their own finances, shielding them from poor decisions or external influence.

Trusts also play vital roles in business succession, enabling ownership to be transferred smoothly without disrupting operations. For those with charitable aims, a trust can establish a formal, long-term framework for giving. In all these situations, the core purpose remains the same: to provide a layer of control and protection that a simple, outright gift or inheritance cannot offer, ensuring your wishes are precisely
followed.

Get in touch

For more detailed information, refer to our guide or contact our financial planners to find out how we can help you use trusts to safeguard your wealth for estate planning purposes. 

THIS GUIDE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE. THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED. THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE ESTATE PLANNING, TAX ADVICE OR TRUSTS. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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