Lifetime Trusts - from £2,000

Protect Your Estate, Control Your Legacy, and Plan with Confidence

Trusts can feel like a modern legal concept, but their origins go back centuries. In medieval England, knights would often leave their land in the care of the local Monks while they went away to fight in the Crusades because they were the people who could read and write and, because they had taken a vow of poverty, they were trusted never to run off with the assets. This arrangement ensured their families were protected and their estates managed in their absence. Over time, this evolved into the legal trust structures we use today.

While society has changed dramatically, the principle remains the same. Trusts exist to protect what matters and ensure it is used in the way it was intended.

However, before trusts come into play, there is always one essential starting point in any estate plan, and that is a properly drafted Will.

What Is a Lifetime Trust?

A Lifetime Trust is created during your lifetime rather than through your Will. You, as the settlor, transfer assets into the trust, which are then managed by trustees for the benefit of your chosen beneficiaries.

Once established, the trust can control how and when assets are accessed, support long-term family planning, and form part of wider inheritance tax and estate structuring strategies. It can also help ensure that wealth is preserved and passed on across generations in a controlled and intentional way.

Unlike a Will, which only takes effect after death, a Lifetime Trust begins operating immediately.

Why Trusts Still Work Today

Although the legal framework has developed significantly since medieval times, the underlying idea has not changed. Trusts are still about responsibility, protection, and ensuring assets are managed according to your wishes.

Many families in Tavistock and across Devon and Cornwall use Lifetime Trusts when they want more than a simple transfer of assets. In many cases, it is about ensuring that wealth is not only passed on, but passed on in a structured and thoughtful way.

For some, this means protecting younger beneficiaries from receiving large sums too early in life. For others, it is about safeguarding assets from future uncertainty or ensuring that family wealth is preserved for generations to come.

At its core, a trust is still an expression of intent and care for the people you leave behind.

Probate and Lifetime Trusts

One of the practical advantages of a Lifetime Trust is that assets held within the right trust are generally not subject to the probate process when you die so avoid the UK probate process.

This is because those assets no longer form part of your personal estate. Instead, they are owned by the trust itself and managed by the trustees in accordance with the trust deed.

As a result, those assets can often be dealt with more efficiently, without waiting for probate to be granted. This can help reduce delays in access for beneficiaries and provide continuity in the management of family wealth.

However, it is important to understand that this only applies to assets properly transferred into a trust during your lifetime. Any assets still held in your personal name will still form part of your estate for Inheritance Tax calculations..

For most people, trusts are therefore not a replacement for a Will or probate process, but a way of ensuring that certain assets sit outside that process entirely.

Types of Trust Structures

Lifetime Trusts can take different forms depending on the objectives of the individual creating them.

A discretionary trust allows trustees to decide how and when beneficiaries benefit. This is often used where flexibility is important or where circumstances are likely to change over time.

A bare or absolute trust gives beneficiaries a fixed entitlement to assets, even if those assets are managed by trustees until they reach a certain age.

An interest in possession arrangement allows one beneficiary to receive income from the trust during their lifetime, while the capital is preserved for others in the future.

Each structure carries different legal and tax implications, which is why selecting the right one is an important part of the planning process.

Tax and Estate Planning Considerations

Lifetime Trusts can play a role in inheritance tax planning, but the rules in the UK are complex and highly dependent on individual circumstances.

In some cases, tax may be payable when assets are transferred into a trust. Certain trusts are also subject to ongoing reporting requirements and periodic charges, and income or capital gains within the trust may be taxed differently from personal assets.

There are situations where assets placed into a trust may fall outside of your estate for inheritance tax purposes, but this is not automatic and depends entirely on structure, timing, and overall planning strategy.

For this reason, Lifetime Trusts should always be considered as part of a wider estate plan rather than as a standalone solution.

Asset Protection – With Careful Limits

Lifetime Trusts are sometimes used as part of broader asset protection planning.

Because assets placed into certain trusts are no longer owned personally, they may offer a degree of protection against future risks or changes in circumstances.

However, trusts must always be established for genuine planning purposes. They cannot be used to avoid known liabilities, and legal safeguards exist to prevent misuse or improper structuring.

When correctly established and used appropriately, they can provide an additional layer of long-term protection for family wealth.

Lifetime Trusts vs Wills – How They Work Together

A common misunderstanding is that trusts replace Wills. In reality, they work together as part of a wider estate plan.

A Will is the foundation of that plan. It sets out your wishes, appoints executors, and ensures your estate is distributed correctly after death.

A Lifetime Trust builds on that foundation by adding structure, control, and long-term planning during your lifetime and beyond. Without a properly drafted Will, trust planning is incomplete and may not function as intended.

Are Lifetime Trusts Right for You?

Lifetime Trusts are not suitable for everyone. They involve giving up a degree of direct ownership, ongoing administration, and careful consideration of tax implications.

For many people, a well-structured Will is sufficient to achieve their goals. However, where estates are more complex, or where there is a desire for greater control, protection, or long-term planning, a Lifetime Trust can be a highly effective tool.

The key is ensuring that any trust is designed around your personal circumstances rather than being treated as a standard solution.

Local Estate Planning in Tavistock and Devon

We support individuals and families across Tavistock and the wider Devon and Cornwall area with Will writing, trust planning, and probate advice.

Whether you are reviewing your existing Will, considering inheritance tax planning, or exploring how to protect family assets, the first step is always clarity about your current position and long-term intentions.

Next Step – Start With Your Will

If you are considering a Lifetime Trust, the most important starting point is ensuring your Will is correctly structured and up to date.

From there, trust planning can be introduced in a way that supports your objectives and strengthens your overall estate plan.

If you would like tailored advice, we can help you understand whether a Lifetime Trust is appropriate for your circumstances and how it may fit into your wider planning strategy.