Trusts in Wills England and Wales: Types, Benefits, and When to Use Them

When planning your estate, you may want to do more than simply leave assets directly to beneficiaries. One option is to include a trust in your Will. Trusts in Wills England and Wales allow you to protect assets, decide how and when they are passed on, and provide flexibility for your family.

Trusts can be extremely useful, but they are also complex. In this article, we explain the main types of trusts in Wills England and Wales, when they might be used, the benefits they offer, and why professional advice is essential.

What are trusts in Wills England and Wales?

A trust is a legal arrangement where trustees look after assets on behalf of beneficiaries. When you include a trust in your Will, it comes into effect after your death. The trustees manage the trust according to your instructions, ensuring your wishes are respected.

Trusts are often used to protect property, manage money for children, or deal with complex family arrangements in a responsible way.

Types of trusts in Wills

The most common types of trusts in Wills England and Wales include:

Bare trusts

Assets are held by trustees until a beneficiary turns 18. At that point, the beneficiary becomes entitled to the trust property.

Interest in possession trusts

These give a named person (the life tenant) the right to benefit from an asset or income during their lifetime. Afterwards, the asset passes to another beneficiary. This is common where someone wants to provide for a spouse while protecting assets for children from a first marriage.

Discretionary trusts

Trustees are given flexibility to decide how and when to distribute income or capital to beneficiaries. This is useful where circumstances may change, or beneficiaries have different needs.

Trusts for vulnerable or disabled beneficiaries

These trusts protect the interests of beneficiaries who cannot manage money themselves. They allow funds to be managed responsibly and may also preserve access to certain means-tested benefits.

For more detail, the GOV.UK guide on trusts provides an overview of how trusts are treated for tax purposes.

When might a trust in a Will be used?

Trusts in Wills England and Wales can be suitable in many situations, including:

• Providing for a spouse while keeping assets safe for children.

• Managing money left to children or grandchildren who are under 18.

• Supporting vulnerable relatives who need ongoing care.

• Allowing trustees flexibility to adapt to family changes over time.

It is important to note that using trusts to try to avoid paying care home fees may be seen by local authorities as deliberate deprivation of assets. In these cases, the trust can be disregarded in financial assessments. This is why professional advice is vital — to ensure any planning is responsible, compliant, and in line with the law of England and Wales.

Benefits of trusts in Wills

Trusts in Wills England and Wales can offer significant advantages:

• Control – You decide how and when assets are used.

• Protection – Assets are safeguarded until beneficiaries are ready to inherit.

• Flexibility – Trustees can respond to changing circumstances.

• Family security – Complex needs, such as second marriages or vulnerable beneficiaries, can be addressed effectively.

Why professional advice matters

Trusts are not one-size-fits-all. They must be set up correctly to avoid tax issues, family disputes, or being challenged later.

At AHJ Wills & Estates, we provide clear, responsible guidance on trusts in Wills England and Wales. Our advice is always tailored to your situation and fully compliant with current laws. For further background on intestacy and inheritance, you can also read the official GOV.UK intestacy guidance.

Protect your family with a well-structured Will

If you are considering including a trust in your Will, the best step you can take is to seek professional advice. With the right planning, you can protect your family, provide flexibility for the future, and achieve peace of mind.

Contact AHJ Wills & Estates today:
Telephone: 0114 553 5416
Email: info@ahjwillsandestates.com

Our Sheffield-based team will help you understand your options and create a Will that reflects your wishes while complying with the law of England and Wales.