Trusts — Protecting What You've Built for the People You Love

A Trust is one of the most powerful tools in estate planning — and one of the most misunderstood.


Most people associate Trusts with the very wealthy. In reality, a Trust can be an important and accessible part of almost any estate plan — for married couples, single people, homeowners, and business owners alike.


A Trust is simply a legal arrangement that gives you greater control over what happens to your assets. Rather than passing everything outright to your beneficiaries on your death, assets are managed by trusted individuals — your Trustees — in line with your wishes. This creates a protective layer around the things you've spent a lifetime building, and helps ensure they reach the people you intended.



At NxtGen Wills, we'll explain exactly what a Trust can do for your family — in plain English, with no jargon.


"Without proper planning, the assets you worked hard to build can be exposed to risks you never anticipated — from care costs and divorce to inheritance tax and creditor claims. A Trust puts you back in control."


Why a Basic Will May Not Be Enough


A straightforward Will leaves your estate to your chosen beneficiaries outright. For many families, this works well — but for others, it can leave assets exposed to risks that could have been avoided with a little more planning.

If you have a basic Mirror Will — leaving everything to your spouse or partner first, then to your children — here is what can happen to those assets after the first death, without Trust protection:


  • Marriage After Death: All assets pass to the surviving spouse or partner. If they remarry, the entire estate could ultimately pass to a new spouse — potentially disinheriting your children and grandchildren entirely.
  • Care costs: If the surviving spouse or partner needs long-term care, the entire combined estate — including the family home — could be assessed to meet those costs.
  • Creditors or bankruptcy: If the surviving spouse faces financial difficulties, the whole estate could be at risk.


And following the second death, your children or chosen beneficiaries face their own risks:


  • Any inheritance they receive adds to their own estate, potentially increasing their own Inheritance Tax bill.
  • If a child goes through a divorce, part of their inheritance could be lost in a settlement.
  • If a beneficiary faces creditor claims or bankruptcy, their inherited assets could be at risk.
  • Assets passed outright could later be assessed towards their own care costs.


None of these outcomes is what you intended. The right Trust arrangement can help protect against all of them.



For Single or Widowed People


If you are single or widowed and leaving your estate to children or other beneficiaries, a Discretionary Trust of Residue within your Will means your assets don't pass to your beneficiaries outright. Instead, they're held in Trust — protecting them from divorce settlements, creditor claims, care costs, and unnecessary Inheritance Tax — while still giving your beneficiaries full access to benefit from them.

For Married Couples & Civil Partners


If you are married or in a civil partnership with a combined estate of up to around £650,000, a Discretionary Trust of Residue written into both of your Wills offers powerful protection. On first death, the deceased's share of assets moves into Trust rather than passing outright — safeguarding it from remarriage, care costs, and creditor risks. The surviving spouse or partner continues to benefit fully and can still move home if they wish.

For Larger Estates (£650,000+)


For married couples or civil partners with a larger combined estate, a combination of a Nil Rate Band Discretionary Trust and an Interest in Possession Trust offers the most comprehensive protection. The Nil Rate Band is the portion of your estate that can pass free of Inheritance Tax (currently £325,000 per person, with an additional Residence Nil Rate Band available when the family home is left to direct descendants). An Interest in Possession Trust gives the surviving spouse the legal right to benefit from assets — for example, to live in the family home — during their lifetime. Together, this structure makes full use of available tax-free allowances, protects assets from the risks above, and ensures the surviving spouse retains full rights to live in the family home — while preserving the estate for future generations as efficiently as possible.

How a Trust Works in Practice


When assets are held in a Trust, they don't belong to your beneficiaries outright — which is precisely what protects them. Your beneficiaries still have access to the benefit of those assets, but because they haven't formally entered their own estates, they're shielded from many of the risks outlined above.


The people responsible for managing the Trust are your Trustees. They act on your behalf, guided by a Trust Memorandum — a private document that sets out your wishes in detail, separate from your Will. This gives Trustees the clarity they need to act in line with your intentions, whilst also retaining the flexibility to respond to your beneficiaries' changing circumstances.


Trustees should meet regularly and keep clear records of their decisions. This is important — it demonstrates that the Trust is being actively and properly managed, which helps maintain the legal protections it provides. For this reason, many families choose to appoint a professional Trustee alongside family members, to ensure the Trust is managed as effectively as possible.


The key principle is this: it is the Trustees' discretion — their considered judgement about how and when to use Trust assets — that creates the protection. A well-managed Trust, with engaged and informed Trustees, is a powerful tool for preserving your family's financial future.


Please note: The information on this page is general guidance only and does not constitute personal advice. Any planning should be tailored to your individual circumstances. We will always take time to understand your situation before making any recommendations.


Not Sure Which Trust Is Right for You?


That's exactly why we're here. Every family's situation is different, and the right Trust arrangement depends on your circumstances — the size of your estate, your family structure, your wishes for the future.


Our team will take the time to understand your situation properly and explain all your options clearly, with no obligation and no jargon.


Or call us on 03330 048 466