What Is a Trust in a Will?

A trust is a legal arrangement where assets are held and managed by one person (called a trustee) for the benefit of another person (called a beneficiary). When a trust is created through a will, it is known as a "will trust" or "testamentary trust." Trusts are one of the most powerful tools available in estate planning, and they are more common than most people realise.

Why do people put trusts in their wills?

There are many reasons you might want to include a trust in your will. The most common are:

• Protecting assets: A trust can protect assets from being lost — for example, if a beneficiary is going through a divorce, has debts, or is vulnerable to financial exploitation.
• Controlling when beneficiaries inherit: You might want to leave money to your children but not until they reach a certain age, such as 25. A trust lets you set these conditions.
• Providing for vulnerable people: If a beneficiary has a disability or mental health condition, a trust can ensure they are provided for without affecting their entitlement to means-tested benefits.
• Tax planning: Trusts can help manage inheritance tax by controlling how and when assets pass to beneficiaries.

Common types of trust in a will

Life interest trust

A life interest trust gives someone (usually a surviving spouse) the right to benefit from an asset — most often the right to live in a property — for the rest of their life. When they die, the asset passes to someone else, such as the children from your first marriage. This type of trust is very common in blended families, where you want to provide for your current partner while ensuring your children ultimately inherit. Read our full guide to life interest trusts.

Discretionary trust

With a discretionary trust, the trustees have the power to decide how, when, and to whom the trust assets are distributed. This is useful when you want to leave assets for children or vulnerable beneficiaries but want the trustees to have flexibility — for example, to respond to changing circumstances or to pay out money when it is genuinely needed rather than as a lump sum. Read our full guide to discretionary trusts.

Vulnerable person's trust

A vulnerable person's trust is a special type of trust for a beneficiary who is disabled or otherwise vulnerable. It can provide for them throughout their life and may receive favourable tax treatment, while protecting their entitlement to means-tested benefits. Read our full guide to vulnerable person's trusts.

Bare trust

A bare trust is the simplest type. The trustee holds the assets on behalf of the beneficiary, and the beneficiary has an absolute right to both the income and the capital. Bare trusts are often used when leaving money to someone who is too young to manage it themselves. Once the beneficiary reaches the specified age (often 18), they take full control.

Protective trust

A protective trust is designed to safeguard assets for a beneficiary who may be vulnerable — for example, someone with a learning disability, a mental health condition, or a history of financial difficulty. The trust gives the trustees discretion to manage the funds in the beneficiary's best interests.

Who are the parties in a trust?

• The settlor: This is the person who creates the trust. In a will trust, the settlor is you — the testator (the person making the will).
• The trustees: These are the people you appoint to manage the trust. They have a legal duty to act in the best interests of the beneficiaries.
• The beneficiaries: These are the people who benefit from the trust. Depending on the type of trust, they may have a fixed entitlement or a potential entitlement at the trustees' discretion.

Choosing trustees

Choosing the right trustees is important. Your trustees can be the same people as your executors, or they can be different people. You might choose trusted family members, close friends, or professionals such as solicitors or accountants. It is a good idea to appoint at least two trustees, and to choose people who are reliable, impartial, and willing to take on the responsibility.

When might you need a trust in your will?

Common situations where a trust is worth considering include:

• Blended families: To provide for your current partner while protecting your children's inheritance
• Minor children: To hold assets until children are old enough to manage them responsibly
• Vulnerable adults: To provide ongoing support without affecting benefit entitlements
• Inheritance tax planning: To make the most of available tax allowances
• Protecting assets from care home fees: Although the rules around this are complex and not guaranteed

Can an online will include trusts?

Yes, many online will services — including ours — can include trusts in your will. Our guided questionnaire will help you set up common types of trust, and every will is checked by a qualified solicitor to make sure everything is correct. For more complex trust arrangements, we recommend speaking to one of our advisors. You can book a call to discuss your situation.