Trust Structures
Trusts can be a powerful way to control how and when wealth is passed on, protect vulnerable beneficiaries and manage tax. Used carefully, they can provide flexibility and certainty within a long-term plan.
Why This Matters Now
- Trusts are increasingly being used as part of IHT planning in response to record levels of receipts and proposed changes to pension and business property relief from April 2027.
- Without a trust, outright gifts remove all control over how and when beneficiaries use assets, which may not be appropriate in all family circumstances.
- Trust and tax law are subject to change. Structures put in place today may need to be reviewed in response to future legislative developments.
What are Trust Structures?
A trust is a legal arrangement in which trustees hold assets on behalf of beneficiaries, according to the terms set out in a trust deed. Trust structures can be used during a lifetime or upon death to control the distribution of assets, manage tax exposure, and protect beneficiaries. They are a core component of comprehensive estate and succession planning.
Key Facts
- Different trust types, including bare trusts, discretionary trusts and interest-in-possession trusts, offer different balances of control, flexibility and tax treatment.
- Trusts can help protect assets for vulnerable beneficiaries, minor children, or individuals with complex family circumstances such as second marriages.
- Assets in a discretionary trust do not automatically form part of a beneficiary's estate, which can help with generational estate planning.
- Trusts carry their own tax obligations, including potential entry, periodic, and exit charges, depending on the type and value of assets.
Who is This For?
- Parents or grandparents who wish to help children or grandchildren but are not ready to transfer full control over assets.
- Individuals with complex family situations, such as second marriages, blended families or vulnerable beneficiaries who require additional protection.
- Business owners and professionals who want greater control over how assets are distributed and used across generations.
- Individuals undertaking IHT planning who want to use trusts as part of a broader estate strategy.
What This Service Aims to Achieve
- Clarify whether, and how, trusts could support your objectives.
- Explain the main types of trust and their implications for control, access and tax.
- Help you decide which assets may be appropriate to place in trust.
- Work alongside your legal advisers to implement suitable trust structures and integrate them into your wider financial plan.
Our Trust Planning Process
Understanding Your Objectives and Concerns
We explore what you want to achieve, for example, protecting family assets, providing for children at appropriate ages, or supporting a beneficiary with specific needs, and identify which trust structures may be relevant.
Considering Trust Options
We outline the main types of trusts and how they might apply in your circumstances, including the tax implications for income tax, capital gains tax and inheritance tax.
Coordinating Implementation
We work with your chosen solicitor or legal adviser to help ensure that trust structures are correctly drafted and aligned with your financial plan and estate objectives.
Ongoing Review
Trusts often run for many years. We review arrangements regularly to ensure they remain suitable in light of changes in legislation, investments and family circumstances.
Frequently Asked Questions
Do I have to give up all control if I use a trust?
Different trust types offer different levels of control and access. In some cases, you may retain significant influence through your choice of trustees and trust provisions. The right structure depends on your specific objectives.
Are trusts only for very wealthy families?
Do trusts always save tax?
Do I need a solicitor to set up a trust?
Important Information
Trust and tax law are complex and subject to change. Specialist legal advice is essential when creating a trust. Ark Wealth Management is an Appointed Representative of Quilter Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate Tax Planning, Estate Planning, Succession Planning, and Trusts.