Trusts | Protecting Your Assets, Securing Your Legacy

Setting up a trust can be one of the most effective ways to protect your estate and ensure your assets are passed on exactly as you intend. At Simon Hall Will Writing Services, we offer straightforward advice on trusts and estate planning, tailored to your family, your values, and your wishes.

Whether you’re thinking about registering a trust, setting up a trust in your will, or simply exploring your options, we’re here to guide you.

What Is a Trust?

A trust is a legal arrangement between three parties:

• The settlor (you) – who sets up the trust
• The trustees – who manage the trust assets
• The beneficiaries – who benefit from the trust

When you set up a trust, your assets (such as your home or savings) are owned by the trust rather than by you personally. For example, your property could be held by The Joan Smith Family Trust, instead of being owned outright by Joan Smith.

Think of it like car finance: if you have a car on a lease, you don’t legally own it – but you can still use it and benefit from it. Trusts operate in a similar way.

Why Set Up a Trust?

Trusts are not just for the wealthy. They’re a powerful estate planning tool that can:

• Protect your assets from future risks
• Ensure your estate passes to the right people at the right time
• Provide support to vulnerable or young beneficiaries
• Help reduce potential inheritance tax liabilities

When Are Trusts Useful?

Here are some of the most common reasons clients choose to set up a trust:

Divorce Protection

Without a trust, assets passed to your child could be lost in a divorce settlement. A trust helps keep family wealth within the bloodline.

Bankruptcy Protection

If your beneficiary runs into financial trouble or business failure, creditors may come after their assets. A trust may help shield those assets from claims.

Remarriage After Death

If your partner remarries after your death, a trust can ensure your estate ultimately passes to your children – not to a new spouse or their family.

Long-Term Care Planning

Care home costs can quickly reduce the value of your estate. While trusts cannot be used to deliberately avoid care fees, when set up early and appropriately, they may offer some protection – especially when care needs are not foreseeable at the time of setting up the trust.

Inheritance Tax Planning

Every individual has a £325,000 Nil Rate Band (NRB) and a £175,000 Residential Nil Rate Band (RNRB) if passing a property to direct descendants.

That gives many married couples a total allowance of £1 million before inheritance tax applies.

However, if house prices and asset values rise – and the NRB doesn’t – your estate could be liable for significant tax in the future.

Carefully structured trusts (alongside financial advice) may help reduce the taxable value of your estate, especially if you survive for 7 years after transferring assets into trust.

How Much Does a Trust Cost?

Trusts, unlike standard wills, are more complex legal arrangements. The average cost of setting up a trust is approximately £1,200.

Because of this, we only recommend trusts if there’s a good reason for you to have one – for example:

• Protecting your home from unintended future claims
• Allowing someone to live in your home after you’ve passed away
• Protecting a vulnerable or disabled beneficiary
• Keeping assets within the family bloodline

We’ll always explain the costs and whether a trust is right for your circumstances before proceeding.

Types of Trusts We Commonly Advise On

At Simon Hall Will Writing Services, we can help you consider options such as:

• Discretionary Trusts
  Flexible trusts where your trustees decide when and how assets are distributed.
• Property Protection Trusts
  Often used in wills to protect a share of the family home for children or loved ones.
• Trusts for Vulnerable or Disabled Beneficiaries
  Protect benefits and ensure long-term support.
• Bereaved Minor or 18-25 Trusts
  Ensure that children inherit at a responsible age, with support in the meantime.

Setting Up or Registering a Trust – What’s Involved?

We’ll guide you step by step:

1. Free consultation – We’ll understand your goals and explain your options.
2. Designing the right trust – Based on your family, estate, and wishes.
3. Preparing the legal documents – Clearly drafted and legally compliant.
4. Registering the trust – Where required, we’ll ensure it’s correctly registered with HMRC.
5. Ongoing support – For updates, amendments, or future advice.