Trusts & Wills – Your Questions Answered

Trusts protect inheritance like nothing else can, and they are becoming more common as people realise you do not need to be wealthy to benefit. Natasha Jones TEP, our Director of Estate Planning, answers the questions we hear every day.

What does a Trust give you that a simple Will doesn't?

Protection, flexibility and control. Pass inheritance by a bare gift in a Will and it becomes part of the recipient's personal estate - exposed to their divorce, remarriage, creditors, inheritance tax, and so on. Pass it through a Will Trust and a fence is placed around it, with you deciding who benefits and how.

How is it set up?

An Estate Protection Trust is written into your Will and comes into being on your death. Your Will directs assets to the Trust rather than to individuals outright.

Doesn't it overcomplicate things?

Usually the opposite. A Will alone often cannot deliver what people actually want - and the complications then land on the executors and family after death, when nothing can be fixed.

How does it protect against divorce?

Inheritance received outright is very hard to keep out of the matrimonial pot. Held in a Will Trust post death and managed correctly, it is ringfenced for your intended beneficiaries.

Why does it matter for blended families?

"Everything to my partner, then split between all our children" is the commonest wish we hear - and a simple mirror Will cannot guarantee it. A Trust can. See our Case File on how badly the simple version can misfire.

What about remarriage?

If a widowed partner remarries, their existing Will is revoked.If a widowed partner remarries or enters a civil partnership, their existing Will is revoked. A Trust ringfences the first estate so a new spouse cannot inherit what was meant for your children.

Does a Trust eliminate Inheritance Tax?

No - your estate is assessed for inheritance tax on your death in the normal way. The advantage comes afterwards: assets held in the Trust do not form part of your beneficiaries' own estates, so they are not taxed again as they pass down the generations. Trusts do carry their own tax regime - there can be a charge when assets are first placed into the Trust if they exceed the available allowance, and periodic and exit charges apply thereafter - and there can also be capital gains tax, income tax, and in some cases other taxes such as Stamp Duty Land Tax, depending on the assets involved and how the Trust is run. Managed correctly by a professional trustee, these are generally modest set against the generational inheritance tax and other threats a Trust protects against. We do not give regulated tax advice on any of these taxes: our role is designing the legal structures with the tax consequences in mind, working alongside your accountant or tax adviser on the detail.

Who controls it?

Your chosen Trustees, following your stated wishes. Trustees can also be beneficiaries.

Isn't it expensive?

A Will with a Trust costs more than a Will alone - and the protection is usually worth many multiples of the difference. Current fees are on our services page.

Key takeaways

• A Will Trust protects inheritance from divorce, remarriage and creditors
• It is the only reliable way to deliver "partner first, then children"
• Not an IHT eliminator, but materially tax-efficient across generations

Talk it through with a STEP-qualified estate planner - complimentary and without obligation.