A Trust lets you set money or property aside for someone, with clear rules about how and when they benefit, rather than handing it over outright. Our Trust solicitors help you decide whether a Trust is the right tool for your situation, and set one up properly if it is.
What is a Trust?
A Trust is a legal arrangement where one or more trustees hold and manage assets on behalf of one or more beneficiaries, according to rules you set out when you create it. Trusts can be set up during your lifetime or through your Will, and can hold money, property, investments or business interests.
People use Trusts for all sorts of reasons: protecting an inheritance for children until they’re older, providing for a vulnerable family member without affecting their benefits, or simply keeping assets separate and properly managed for a specific purpose.
Types of Trust we set up
Life Interest Trusts
Often used in Wills for blended families, a Life Interest Trust lets one person, commonly a surviving spouse, benefit from an asset such as the family home during their lifetime, with it passing to different beneficiaries, often children from an earlier relationship, afterwards.
Discretionary Trusts
The trustees have discretion over how and when beneficiaries benefit, giving flexibility to respond to changing circumstances, such as a beneficiary’s needs or means, rather than fixing everything in advance.
Bare Trusts
The simplest form of Trust: the beneficiary has an absolute right to the assets once they reach a set age, usually 18. Often used for straightforward gifts to children or grandchildren.
Vulnerable person’s Trusts
Designed for a beneficiary with a disability or vulnerability, these Trusts can provide for someone without disqualifying them from means-tested benefits, and sometimes carry their own more favourable tax treatment.
Why use a Trust?
There are numerous reasons for setting up a Trust, including:
Protecting an inheritance: Keeping assets out of a beneficiary’s own estate or away from a future divorce or bankruptcy, until they’re ready to manage it themselves.
Providing for a vulnerable beneficiary: Supporting someone with a disability or additional needs without affecting their entitlement to means-tested benefits.
Blended family planning: Providing for a surviving spouse while protecting an eventual inheritance for children from an earlier relationship.
Care fee planning: Structuring assets during your lifetime, with proper advice on the rules around deprivation of assets, since not every arrangement will be effective or appropriate.
Trusts and inheritance tax
Most Trusts you set up during your lifetime, other than for a spouse, a disabled person, or a bereaved minor, are treated as ‘relevant property’ Trusts for inheritance tax, meaning they can face a charge when set up, a periodic charge every 10 years, and a charge when assets leave the Trust.
From 6 April 2026, Trusts holding business or agricultural property will get their own £2.5 million allowance for the 100% rate of Business Property Relief and Agricultural Property Relief, refreshing every 10 years, with only 50% relief above that. If your Trust holds, or might hold, business or farming assets, this is worth reviewing well before the change takes effect, see our inheritance tax solicitors page for the wider picture on inheritance tax.
Trustee duties
Being a trustee is a genuine legal responsibility, not just a formality, and it’s worth understanding what you’re taking on before you agree to act.
Acting in the beneficiaries’ interests: Trustees must act in the best interests of the beneficiaries as a whole, not their own interests or preferences.
Managing Trust assets properly: This includes investing sensibly, keeping proper accounts, and not mixing Trust money with your own.
Following the Trust’s terms: Trustees must act within the powers set out in the Trust document, not simply what seems reasonable at the time.
Reporting and tax compliance: Trusts often need to be registered with HMRC’s Trust Registration Service, and may need their own tax returns.
Why choose Slater Heelis for Trusts
We’ve been advising families across the North West for over 250 years, and we’re listed in The Times Best Law Firms for 2026 and recognised by The Legal 500 as one of the leading firms in the North West.
Straight-talking advice: No jargon, no hedging, just a clear explanation of your options and what they’re likely to cost.
Genuinely experienced team: Alex Sealy leads our Wills, Trusts and Probate team, and several of our Private Client partners are members of STEP and Solicitors for the Elderly.
Rated by real clients: Over 1,700 five-star reviews and a 4.9 out of 5 average rating on ReviewSolicitors.
Trust solicitors in Manchester, Sale and Chester
We advise on setting up and running Trusts across Manchester, Sale and Chester, as well as clients further afield across the UK and overseas.
Our offices in Manchester, Sale and Chester are open for face-to-face meetings, and we work with clients across the UK and overseas, with appointments available at our other locations in London, Liverpool, Leeds, York and Sheffield when that’s more convenient for you.
Thinking a Trust might help your situation?
Trusts aren’t right for everyone, so it’s worth a straightforward conversation first. Call us on 0330 111 3131, or get in touch via our online enquiry form.
Costs depend on the type and complexity of the Trust. A simple bare Trust costs less than a discretionary Trust with detailed provisions. See our fees or get in touch for a tailored quote.
Can I be a trustee of my own Trust?
Yes, though it’s common to appoint at least one other trustee alongside yourself, particularly for Trusts that will run for many years, so someone else is already familiar with it if you’re no longer able to act.
Do Trusts avoid inheritance tax entirely?
Not automatically. Most lifetime Trusts are still within the scope of inheritance tax, though certain Trusts, such as those for a disabled beneficiary, do get more favourable treatment. Careful structuring can reduce the overall bill, but it needs proper advice.
What happens if a trustee doesn't act properly?
Beneficiaries can potentially hold a trustee to account, including through the courts in serious cases, for failing to act in their interests or mismanaging Trust assets. This is exactly why choosing trustees carefully, and taking advice on their duties, matters.
Can a Trust be changed once it's set up?
Sometimes, depending on the type of Trust and its terms. Some Trusts include built-in flexibility; others need a formal variation, which isn’t always possible. We can advise on your specific Trust’s options.
Do I need a Trust if I already have a Will?
Not necessarily, a Will alone is enough for many people. A Trust becomes useful where you want more control over timing, protection for a vulnerable beneficiary, or a way to manage assets for someone who isn’t ready to receive them outright.
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