Trusts

Trusts can be very useful, but only when they are used for the right job. One of the biggest problems in this area is that completely different things get blurred together. A trust written into a Will is not the same thing as a lifetime, or inter vivos, trust created while you are alive. The advice, the risks, and the cost can be very different.

At Make My Will Today, we use Will Trusts regularly where they are sensible. We do not believe in frightening people into expensive lifetime trust arrangements with sweeping promises that do not stand up to scrutiny. We are Trust geeks, but we are also very comfortable saying when a simpler plan is the better option.

What is a trust?

A trust is a legal arrangement where assets are held by one person or group of people for the benefit of someone else. That could involve money, property, or other assets. The trust terms decide who is in charge, who can benefit, and when.

That sounds broad because it is broad. There is no one single thing called a trust. Different trust structures do different jobs, and some firms give them proprietary names that make them sound more exotic than they really are.

Will Trusts and lifetime trusts are not the same

A Will Trust is created by your Will and only takes effect after death. These can be very useful. We use them regularly for a range of legitimate estate planning reasons, including where more control or protection is needed after somebody has died.

A lifetime trust, sometimes called an inter vivos trust, is created while you are alive. These can also have legitimate uses, but they need much more careful scrutiny because they are often the area where people are sold expensive arrangements they do not actually need.

If someone talks about “a trust” without making that distinction, that is usually a sign to slow the conversation down.

When a Will Trust may be worth considering

A Will Trust may be worth discussing if you want more control over what happens after death, or if a straightforward gift in a Will does not properly reflect the family situation.

• Protecting children until a suitable age
• Providing structure for a vulnerable beneficiary
• Adding protection or flexibility in a blended family
• Creating clearer control over how assets are used after the first death

These are the sorts of conversations that sit naturally alongside a properly drafted Will and, in many families, wider planning such as Lasting Powers of Attorney.

Where the real danger usually sits

The trust mills are usually not talking about sensible, well-targeted Will Trusts. The bigger danger tends to be firms churning out expensive lifetime or inter vivos trusts, often at eye-watering fees, with wild promises about protection, care fees, or what the arrangement will supposedly achieve.

If somebody is trying to sell a £4,000 lifetime trust with sweeping claims and very little careful explanation, that is exactly the point where caution matters. Good advice should explain what the trust does, what it does not do, what the downsides are, and what the simpler alternatives might be.

We would much rather give you clear advice than sell you something because it sounds clever.

How we approach trusts

We start with the real planning problem. Are you trying to protect children, support somebody vulnerable, introduce flexibility, or deal with a more complex family structure? Once that is clear, we can explain whether a Will Trust, a lifetime arrangement, or no trust at all is the sensible answer.

If a trust makes sense, we will explain how it works in plain English. If it does not, we will say so. If you are also thinking ahead about estate administration, our upcoming Probate service may also be relevant in time.

If you want a straightforward conversation about whether a trust is useful in your situation, book a consultation and we will talk it through with you.