There are several main types of trusts used in UK estate planning, each serving different purposes:

• Bare trusts – beneficiaries have an absolute and immediate right to both capital and income. These are simple structures often used for holding assets until a beneficiary reaches adulthood.

• Discretionary trusts – trustees have full discretion over how, when, and to whom assets are distributed. This allows flexibility based on changing circumstances.

• Interest in possession trusts – one beneficiary has the right to receive income or benefit from the trust assets for a defined period, after which capital passes to other beneficiaries.

Each type of trust has different legal, administrative, and tax implications. The most appropriate structure depends on whether the priority is control, flexibility, protection, or long-term planning.

Trusts are used to provide structure, protection, and long-term control over assets, rather than simply transferring them outright.

Common reasons include:

• Ensuring children or younger beneficiaries do not receive large sums before they are ready to manage them

• Providing financial protection for vulnerable or dependent beneficiaries

• Managing inheritance fairly in blended or complex family situations

• Reducing the risk of assets being lost through divorce, bankruptcy, or poor financial decisions

• Supporting wider estate planning strategies, including inheritance tax planning where appropriate

A trust allows assets to be managed according to clear rules, ensuring they are used in a way that reflects the settlor’s intentions over time

A trustee is an individual or organisation legally responsible for managing trust assets in accordance with the trust deed and in the best interests of the beneficiaries.

In most cases, any adult with mental capacity can act as a trustee. This often includes family members or trusted friends. However, trustees must take on legal responsibilities, including managing assets properly, keeping records, and acting impartially.

In more complex or higher-value arrangements, professional trustees such as solicitors or trust companies may be appointed. This can provide additional expertise, continuity, and neutrality in decision-making.

Whether a trust can be changed depends entirely on its structure and legal wording.

Some trusts are designed with flexibility, allowing trustees limited discretion or the ability to adapt certain decisions over time. Others are fixed, meaning the terms are legally binding and cannot be altered without formal legal processes or court involvement.

Lifetime Trusts are drafted to suit the needs of the Settlor and their family circumstances.

Trusts can sometimes be part of long-term planning, but they do not provide automatic protection from care fees.

When assessing care contributions, local authorities will review an individual’s overall financial position. If assets are held in a trust, they may still consider whether those assets are effectively accessible or whether the arrangement was created to avoid care costs.

However, trusts can still be useful for clearly separating assets, setting long-term intentions, and ensuring that funds are managed for the benefit of intended beneficiaries in a structured way.  It's worth reading our guide on Care Fees to find out more.

A discretionary trust is a flexible structure where trustees decide how, when, and to whom trust assets are distributed.

Rather than giving beneficiaries fixed entitlements, the trustees have the ability to respond to individual circumstances, such as financial need, age, or changes in life situation.

This makes discretionary trusts particularly useful in family estate planning, where flexibility is important and where circumstances may change over time.

Many trusts in the UK can last up to 125 years depending on how they are structured and the rules governing them.

This allows trusts to support not only immediate beneficiaries but potentially future generations as well, making them useful for long-term wealth planning and protection.

In practice, however, many trusts are designed with a shorter working lifespan, with assets distributed once specific conditions are met or the trust’s purpose has been fulfilled.

While it is possible to create some basic trust arrangements without legal advice, it is strongly recommended to use a solicitor, a barrister or professional estate planner to access these types of trust for you.

Trust law is highly technical, and even small drafting errors can affect tax treatment, legal validity, and how assets are ultimately distributed.

Professional advice helps ensure the trust is correctly structured, legally sound, and aligned with your intentions as well as UK legal requirements.