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Whether you’re considering creating a lifetime or will trust, our guide to family trusts in the UK will help you get started. What is a trust? A trust is a legal entity set up by an individual (known as the settlor) which allows another person to benefit from an asset without being its legal owner.
There are two main types of trust that you might choose to set up: a will trust, created upon your death, or a lifetime trust, which you establish during your lifetime. We explain the pros and cons of both. Get 50% off wills with Which?. You can even get it reviewed by our specialists to make sure it’s completed correctly. Offer ends 31 July 2025.
What advantages are there to making a family protection trust? What are the disadvantages of a family protection trust? What happens to a lifetime trust after my death? How much does a family protection trust cost? How does the tax work for a family protection trust?
In this article, we highlight the key advantages and disadvantages of both structures to help you determine whether either (or both) is suitable for you and your family. A family trust puts assets in the hands of new legal owners – the trustees – to hold on behalf of and manage for the benefit of a class of beneficiaries.
The family trust can be an effective way of making financial provision for your loved ones, both during your lifetime and after you die. This type of trust can be used for all sorts of different reasons, from helping to fund a child’s education to mitigating the cost of care home fees or inheritance tax.
Choosing the right one depends on your financial goals and family situation. Bare Trusts – A Bare Trust holds assets for a beneficiary until they reach a certain age (typically 18 in England and Wales). The beneficiary has an absolute right to the assets once they come of age.
In this guide, we’ll explore the differences between FICs and trusts including what they’re for, how they’re taxed, and practical considerations. (5-minute read) Trusts are usually sold as being vehicles to save tax, but nowadays, they’re not as effective for this purpose as Family Investment Companies.
For those looking to protect their wealth and pass it down to the next generation, the best family trust to use might not even be a trust at all. Instead, there is something far simpler which doesn’t involve complex legal structures or high levels of taxation. Let me explain.
When choosing the best structure for managing wealth, many families compare trusts vs family investment companies. At ASWATAX, we understand how complex this decision can be. Both offer tax advantages, asset protection, and estate planning benefits—but they differ in control, flexibility, and long-term strategy.
Contact us today and find out how our family trusts and asset protection solicitors can help you. What can a family trust and asset protector do? We can help you set up a trust to make sure that your family gets the most out of your assets. A trust can: Reduce your spouse’s tax burden when you die.