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When to start a Trust

When should you start a trust in the UK?

In the UK, you can start a trust at any time, but it is often most effective when it forms part of early estate planning or follows a significant life event. Many people choose to start a trust when they have children, acquire property, build up savings or business assets, or begin planning for inheritance tax. A well-timed trust can help protect assets and ensure they are passed on in line with your wishes.

At Welland Valley Legal, we help clients understand whether now is the right time to start a trust and how it fits into their wider estate planning goals.

What Is a Trust?

A trust is a legal arrangement where assets are held by one or more trustees for the benefit of named beneficiaries. The person who sets up the trust is known as the settlor.

In England and Wales, trusts are commonly used to:

  • Protect family assets
  • Control how and when beneficiaries receive money or property
  • Provide for children or vulnerable individuals
  • Support inheritance tax planning

 
Trusts must comply with UK law and HMRC rules, which makes professional legal advice particularly important.

When Is the Right Time to Start a Trust?

There is no single answer that suits everyone, but a trust is often appropriate in the following circumstances.

When You Want to Protect Family Assets
A trust can help protect assets from future risks such as divorce, remarriage, bankruptcy, or third-party claims. Many people use trusts to ensure that wealth remains within the family and is passed down responsibly across generations.

When Inheritance Tax Planning Is a Priority
Trusts can play an important role in inheritance tax planning when structured correctly. Starting a trust early can allow you to plan ahead, make use of available allowances, and ensure your estate is arranged in a tax-efficient manner in line with HMRC regulations.

When You Have Children or Vulnerable Beneficiaries
If your beneficiaries are young or vulnerable, a trust allows you to decide:

  • When assets are released
  • How funds can be used
  • Who manages the assets on their behalf

This provides peace of mind that beneficiaries will be looked after appropriately and in their best interests.

When You Own Property or Business Interests
Trusts are frequently used by individuals who own property portfolios or family businesses. Starting a trust can help with succession planning, asset protection, and long-term continuity.

Can You Start a Trust Too Early?

Starting a trust early is not necessarily a problem, but it must be done for the right reasons. An unsuitable or poorly structured trust can create unnecessary tax charges or ongoing administration.

At Welland Valley Legal, we take the time to assess whether starting a trust now is appropriate or whether it would be better introduced at a later stage as part of a broader estate plan.

Should a Trust Be Set Up During Your Lifetime or in Your Will?

A trust can be created:

  • During your lifetime, or
  • Within your will, taking effect after death

 
Lifetime trusts are often used for asset protection and proactive planning, while will trusts are commonly used to manage inheritance and safeguard beneficiaries after death. The right option depends on your personal circumstances, assets, and long-term intentions.

Should a Trust Be Set Up During Your Lifetime or in Your Will?

A trust can be created:

  • During your lifetime, or
  • Within your will, taking effect after death

Lifetime trusts are often used for asset protection and proactive planning, while will trusts are commonly used to manage inheritance and safeguard beneficiaries after death. The right option depends on your personal circumstances, assets, and long-term intentions.

How Welland Valley Legal Can Help You Decide When to Start a Trust

Deciding when to start a trust involves legal, tax, and personal considerations. A solicitor can help ensure your trust is both effective and compliant.

At Welland Valley Legal, we:

  • Review your estate and family circumstances
  • Advise on the most suitable type of trust
  • Ensure compliance with UK trust law and HMRC requirements
  • Help you avoid costly mistakes and unintended tax consequences

Our advice is clear, practical, and tailored to your individual needs.

Frequently Asked Questions

Is there a minimum age to start a trust in the UK?
There is no fixed minimum age, but the settlor must have the legal capacity to understand the trust and its consequences.
Do trusts reduce inheritance tax?
Trusts can assist with inheritance tax planning, but they are not automatically tax-free. The tax treatment depends on the type of trust and how it is structured.
Can a trust be changed or cancelled later?
Some trusts can be amended or brought to an end, while others cannot. This depends on how the trust is drafted and should be considered carefully at the outset.
Do I need a solicitor to start a trust?
Although it is not a legal requirement, using a solicitor is strongly recommended. UK trust law and taxation are complex, and professional advice helps ensure the trust works as intended.
How long does it take to set up a trust?
Most trusts can be set up within a few weeks, depending on complexity and the assets involved.

Speak to a Trust Solicitor at Welland Valley Legal

Starting a trust is an important decision that benefits from clear, professional advice. Welland Valley Legal provides specialist guidance on trusts and estate planning, helping you protect your assets and plan confidently for the future.

Our solicitors are regulated by the Solicitors Regulation Authority and offer clear, straightforward advice tailored to your circumstances.

The following are circumstances that would indicate that you could benefit from a trust:

You have a vulnerable beneficiary

Examples of this could be that your child has a disability and receives means tested benefits or you have a child that is not responsible with money perhaps because they have drug or alcohol dependency
You are worried about your children getting divorced in the future or becoming bankrupt
Trusts can assist in safeguarding monies becoming part of any future divorce settlement or passing to trustees in bankruptcy
You have a business.
Trusts can be utilised to preserve business property relief on death or in your lifetime.

Protection of property against care home fees.

On death we can place your share of a property into a certain type of trust so that if the survivor needed to go into a care home, only 50% of the property could be used to fund such care. It is a way to protect 50% of the property against care home fees.
Protect children’s inheritance where you have children from a previous marriage
Trusts can be used to benefit your current Partner but also safeguard against your partner potentially making a new Will on your death and disinheriting your children
Preservation of wealth for future generations
Where an individual has substantial wealth it may be unwise for this to pass directly to beneficiaries. Trusts can be used to look after the money and preserve the funds for future generations.

Give Us a Call

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