Trusts for the Family
Trusts have been in existence for hundreds of years, and they have increasingly become a modern cornerstone to solicitor-drafted Wills.
We primarily recommend Trusts as giving a range of options to an individual wishing to make gifts, whether in their Will or during their lifetime. Those options include lending the capital to the beneficiaries consecutively “in turn” over the generations.
Trust structures are best explained in person if at all possible, which is why a personal service from a lawyer is always advisable.
When should Trusts be considered?
When making gifts of money or value, Trusts should be considered. We would say that an individual making a gift in excess of £10,000 in value should consider making that gift via a Trust. This applies to gifts made in a Will on death as well as to gifts made during someone’s lifetime.
It is therefore easy to see why Trusts have become so popular, as they apply to so many circumstances of gift-making or for asset transfers.
Why are Trusts useful?
In simple terms, Trusts protect the money or asset gifted or transferred for the beneficiaries.
Why is protection desirable when making gifts?
Protection is desirable as there are a number of potential claimants against assets owned by individuals and families. Those potential claimants can be summarised as:
- “Second marriage” issues: preventing step-families from receiving assets to the detriment of direct children. For example, a widow or widower remarrying and assets passing to a second spouse and, on their death, to the second spouse’s own children
- Inheritance Tax on your estate assets and those you have inherited from others, on death
- Divorce: former spouses who can claim a share of your assets and those you have inherited from parents or other relatives
- Creditors and those to whom you owe money who claim against the assets you own or have received in gifts or inheritances from others
- Crystallising wishes: to avoid changes in Wills at a later date that alter longstanding arrangements. Such as a widow(er) changing a Will just before death to benefit one child more than the other(s) when previously everything had been left equally
- Third-party claims: alongside the above reasons for setting up Trusts, assets might also be protected from claims by third parties
What are the main principles of Trusts?
A fundamental benefit of using Trusts is the ability to provide that gifts pass to consecutive beneficiaries “in turn”, for example, making provision in a Will Trust for one particular beneficiary such as a spouse, then on the spouse’s death to make provision for those assets to pass down to a second set of beneficiaries such as children.
The other fundamental benefit is that Trusts protect the value of gifts for the beneficiaries in turn, ensuring that beneficiaries have full access to the assets, however, these assets are protected from outside third parties who cannot claim a share.
Trusts are excellent structures to protect assets until beneficiaries have reached a certain age or can protect assets for vulnerable beneficiaries or those with disabilities.
A common Trust used is a Discretionary Trust. The Trust comprises a series of legal documents. A Trust can create a “lifetime loan” of assets to beneficiaries in turn, such as a spouse for life, then children for their lives and so on for the lifespan of the trust (125 years).
How can I obtain information on Trusts or advice on their use?
If you intend to review your Will or make a gift in excess of £10,000 in value, we suggest you contact us to arrange a personal appointment with one of our lawyers.
Meet the Private Client Team at BWK Solicitors
Our Private Client team provides trusted legal advice and support on personal estate planning, wills, probate, trusts, powers of attorney, and broader private wealth matters. We help clients organise and protect what matters most — your family, your legacy and your peace of mind.
Leading the team is Usman Khan LLB Hons, Solicitor, Head of Private Client, who specialises in wills, estate and inheritance tax planning, trust structures, lasting powers of attorney, and probate and estate administration. Usman brings extensive experience and a clear, supportive style to highly personal legal matters.
Johanna Knott BA SFE TEP, Senior Associate Solicitor – a highly experienced solicitor in private client work, including complex estate planning, trust advisory, Court of Protection matters and administration of estates. Her STEP accreditation reflects her expertise in managing sensitive and high-value private affairs.
Lucy Pankhurst LLB Hons, Associate Solicitor – provides a personable and informed approach to wills, trusts, probate and powers of attorney, often meeting clients in locations that suit their needs.
Jeremy Wise FCILEx, Legal Executive & Director – specialises in Wills and Estate Planning; Powers of Attorney (LPAs) for both Property & Financial and Health & Welfare, and all aspects of Probate and estate administration, including the administration process, advising on both taxable and non-taxable estates, completing and submitting inheritance tax accounts, preparing estate accounts and obtaining the Grant of Probate or Grant of Letters of Administration on intestacy.
This team offers a compassionate and knowledgeable service for individuals and families looking to plan for the future, administer estates, or put robust legal protections in place.
