In the UK, a revocable trust allows the person creating the trust to amend certain terms or cancel the trust if circumstances change, meaning they retain a degree of control over the assets. By contrast, an irrevocable trust is generally permanent; once established, the terms usually cannot be altered, and the settlor typically gives up ownership and control of the assets placed into the trust.
Dating back many hundreds of years, a trust is a legal arrangement where your assets are placed under the control of Trustees, who manage them for the benefit of your chosen Beneficiaries.
Trusts are commonly used in UK estate planning to:
Pass wealth between generations
Reduce delays caused by Probate
Protect family assets
Control how and when beneficiaries receive funds
Trusts are powerful planning tools, but they must be set up correctly.
People typically use them to:
Protect family wealth
Support children or vulnerable beneficiaries
Manage inheritance planning
Reduce estate administration delays
Maintain control over asset distribution
Some trust arrangements allow the Settlor to retain control during their lifetime.
This may allow:
Changes to the trust structure
Ongoing control of assets
Adjustments as circumstances change
However, tax and protection benefits may be more limited depending on the setup.
An irrevocable trust usually involves transferring assets out of personal ownership.
This can:
Increase asset protection
Support inheritance tax planning strategies
Separate assets from personal ownership
Once set up, these trusts are typically harder to change.
You may come across the terms revocable and irrevocable trusts. While these are widely used internationally, most trusts used for estate planning in the UK are, in practice, irrevocable once established.
If you are considering a trust or want advice on estate planning, we can help you make an informed decision.
Get clear, practical guidance on revocable and irrevocable trusts and how they may support your long-term planning goals.
A bare trust (sometimes referred to as an absolute or fixed trust) is much more straightforward. The beneficiary has an immediate and absolute right to the assets held in the trust, even if those assets are managed by trustees until a certain age.
This structure provides certainty and simplicity, but it does not allow for flexibility if circumstances change and effectivley you are giving assets to someone with a check and balance built in.
With this type of trust, one beneficiary (often a spouse or partner) has the right to receive income from the trust during their lifetime, while the underlying assets are preserved for other beneficiaries (such as children) at a later date.
In some circumstances, the Settlor (you) can maintain a Life Interest in the trust asset which means they stay inside your estate for Inheritance Tax purposes but outside for Probate purposes - this is a very effective planning tool when set up correctly.
A discretionary trust gives trustees flexibility to decide how and when beneficiaries receive assets. Rather than fixed entitlements, trustees consider each beneficiary’s needs and circumstances at the time.
This type of trust is often used where family circumstances may change over time or beneficiaries are younger or financially inexperienced or there is a need to retain control and flexibility
Trusts are not one-size-fits-all. The right structure depends on:
Your estate planning goals
The type of assets involved
Tax and legal considerations
How much control you want to retain
Incorrect setup can reduce the effectiveness of the trust, so professional guidance is essential.
We help individuals and families understand and set up trusts that are:
Legally compliant
Properly structured
Aligned with estate planning goals
Clear and easy to understand
We can explain your options in simple terms and help you decide what is appropriate for your situation.
Trusts can play an important role in managing inheritance tax (IHT), but the rules in the UK are complex and must be approached carefully.
Depending on the type of trust:
there may be inheritance tax implications when assets are transferred into the trust
some trusts are subject to ongoing charges (including periodic and exit charges)
income and capital gains within the trust may be taxed differently
In some cases, assets placed into a trust may fall outside your estate for inheritance tax purposes, but this depends on factors such as timing, value, and the structure used.
Because of this, trusts should always be considered as part of a wider estate plan, not as a standalone solution.
When structured correctly, trusts can help families:
pass wealth to children or grandchildren in a controlled way
protect assets in situations such as divorce or financial difficulty (subject to legal limits)
provide for vulnerable or dependent beneficiaries
manage how and when beneficiaries receive funds
preserve family assets across generations
The key is ensuring the structure reflects your intentions and is set up at the right time.
There is no single “best” type of trust. The right approach depends on your personal circumstances, your family, and your long-term objectives.
Some people prioritise flexibility. Others focus on certainty, protection, or tax efficiency. In many cases, a combination of structures, built around a strong Will, provides the most effective outcome.
If you’re considering using trusts, the first step is to make sure your Will is structured correctly.
From there, trusts can be introduced in a way that strengthens your overall estate plan, rather than complicating it.
You may also wish to explore our Lifetime Trust FAQs page for a more detailed look at how trusts are used in long-term planning.
It’s a common misconception that trusts replace a Will. In reality, the opposite is true.
A Will:
Sets out your wishes clearly
Ensures your estate is distributed correctly
Trusts are then used to enhance that plan, adding control, protection, and flexibility where needed.
Without a properly drafted Will, even the most sophisticated trust planning can fall short.
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