Will Trusts are used to provide control, protection, and flexibility over inheritance. They are particularly useful in blended families, where there is a need to balance the interests of a surviving spouse and children from previous relationships.

They can also help protect assets from divorce, bankruptcy, or poor financial decisions by beneficiaries.

Will Trusts are managed by trustees, who are appointed in the Will. Trustees are legally responsible for managing the trust in accordance with its terms and acting in the best interests of beneficiaries. 

Some Will Trust structures may help manage or defer inheritance tax liabilities. However, tax treatment depends on how the trust is structured and how assets are transferred.

Professional advice is strongly recommended due to the complexity of UK tax law.

A life interest trust allows one beneficiary (often a spouse) to benefit from income or use of an asset during their lifetime, while preserving the capital for other beneficiaries after their death. This is often used for blended marriages to look after a spouse after first death but to make sure the right children inherit eventually.

Yes, trustees are often family members, although some people also appoint professionals to ensure impartiality and compliance with legal responsibilities or make it clear that advcie should be sough to make sure the trust works as intended.

If trustees cannot agree, disputes may need to be resolved through legal channels which are prescribed as part of trust law - but it is rare and, if is thought that a trustee might nor cooperate, they should not be chosen

Generally no, family members are simply looking after assets for others and either holding money in a bank account or investing it for the longer term so costs should be no more than looking after their own money.

Challenges are possible but generally more difficult to win if the trust has been properly structured and clearly documented.

No, Will Trusts do not avoid probate entirely, but they can influence how assets are distributed after probate is granted.  To avoid probate a Lifetime Trust is best used - you can learn more in our Lifetime Trust guide.

Yes, Will Trusts can fall within the scope of inheritance tax, but they are designed to work within the UK tax system rather than outside it.

In many cases, careful planning means allowances such as the nil-rate band or spouse exemption are used efficiently before the trust is created. Once established, the trust is then taxed according to its structure, which provides a clear and predictable framework for how assets are managed over time.

While tax may still apply, Will Trusts offer a structured way to ensure assets are distributed in line with your wishes, rather than being left to default rules.

Will Trusts do not automatically remove inheritance tax, and they are not intended as a tax avoidance mechanism.

However, they can play an important role in tax-aware estate planning. When used appropriately, they help ensure that available allowances are used effectively and that assets are passed on in a controlled and efficient way.

In practice, many families use Will Trusts not to avoid tax, but to balance tax considerations with long-term protection and clarity for beneficiaries.

When a Will Trust is created, the estate is first assessed for inheritance tax in the usual way. After that, the trust becomes its own legal and tax structure.

This separation is helpful because it allows assets to be managed in a clear and organised way, with trustees responsible for administering them according to your instructions.

Different trust types are taxed differently, which means the structure chosen can be tailored to suit both family needs and financial planning goals.

Beneficiaries may pay tax depending on how they receive benefits from the trust.

In many cases, income generated by the trust is taxed in the hands of the beneficiary, while capital distributions are handled under different rules and are not normally taxed.

The overall approach is designed to be fair and structured, ensuring tax is applied appropriately while still allowing beneficiaries to receive their inheritance in a managed way.

Will Trusts may be subject to income tax, capital gains tax, and in some cases inheritance tax charges depending on the structure.

While this may sound complex, the tax treatment is similar to if assets are eld by an individual - if they go up in value and are sold, tax becomes due and so tax would be due if they are held in a trust and they go up.  In practice it allows trustees to manage assets in a transparent and regulated way, ensuring the trust operates correctly over time.

Each trust type has its own rules, which means arrangements can be tailored to suit different family and financial situations.

Some trusts in the UK, particularly discretionary trusts and other ‘relevant property’ trusts, may be subject to a 10-year periodic inheritance tax charge.

In practice, however, this charge does not apply in many everyday situations. It is only relevant where a trust still holds assets above the available nil-rate band at the 10-year anniversary point.

Many families will never experience a tax charge at this stage, either because the trust value remains within allowances or because assets are distributed to beneficiaries over time as part of normal trust management.

Importantly, not all trusts are treated the same. Trusts created for vulnerable or disabled beneficiaries often fall under different tax rules and are not be subject to the standard periodic charge in the same way as discretionary trusts.

Where the charge is relevant, it is generally part of a structured and predictable system rather than an unexpected penalty. Trustees can often plan ahead, manage asset levels, or make distributions where appropriate to ensure the trust continues to operate efficiently and in line with the settlor’s intentions.

Overall, the 10-year charge should be seen as a technical planning checkpoint within the trust tax framework, rather than a common or unavoidable cost for most Will Trust arrangements.

Yes, life interest trusts are generally taxed in a different way to discretionary trusts.

They are often used where it is important for one person to benefit from assets during their lifetime, while ensuring others inherit later on.

This structure can provide a balanced approach, combining financial security for one beneficiary with long-term protection for others.