What trusts are available, what they do, and when they make sense
Trusts are not about hiding money or playing games with HMRC. Used properly, they are legal tools that help people control who benefits from their assets, when they benefit, and on what terms. Used badly, they are expensive disappointments.
Below is an overview of the trust structures offered by our partner, what they are designed to do, and the types of situations they are most commonly used for.
Will Trusts
Protective Property Trust (PPT)
This is one of the most common will trusts for couples.
It is typically used to:
- protect a share of the family home on first death
- prevent assets being diverted due to remarriage
- preserve value for children while still allowing the survivor to live in the property
The survivor usually has the right to occupy the property for life, but does not own the deceased’s share outright. This offers protection without forcing a sale or causing disruption.
Best suited to couples with children from previous relationships or anyone wanting long-term asset protection.
Flexible Life Interest Trust (FLIT)
A FLIT provides a life interest, usually to a spouse or partner, but with flexibility built in.
It can:
- provide income or occupation rights
- allow trustees to adapt to changing circumstances
- assist with inheritance tax planning
This type of trust is often used where the testator wants to “look after” someone, but does not want to lock the estate into rigid arrangements.
Split Will Trusts (Unmarried Couples)
Designed for unmarried couples who own property together.
These trusts:
- recognise unequal contributions
- protect each person’s share
- prevent unintended inheritance outcomes
They are particularly useful where one partner has children and the other does not.
Lifetime Trusts
Estate / Asset Allocation Trust (EAT)
An EAT is a lifetime trust used for broader estate planning.
It can:
- ring-fence assets for future generations
- provide control over how and when beneficiaries benefit
- form part of inheritance tax mitigation planning
These trusts are not “one size fits all” and must be structured carefully, especially where the settlor continues to benefit from the assets.
Investors Living Trust (ILT)
This is a lifetime trust designed for people with investment assets or multiple properties.
It can:
- consolidate assets under one trust structure
- simplify future administration
- provide succession planning for family wealth
Often used by landlords or investors who want continuity and control.
Vulnerable Person Trust
These trusts are designed for beneficiaries who are vulnerable due to disability, illness, or lack of capacity.
They:
- protect entitlement to means-tested benefits
- ensure assets are managed responsibly
- allow tailored support without exploitation
These trusts are tightly defined in law and must meet specific criteria to qualify for favourable tax treatment.
Legacy Protection Trust / Settlor-Excluded Trust
Used where the settlor wants to:
- give assets away
- remove them from personal control
- ensure they cannot benefit themselves
These trusts are often used in long-term planning where asset protection and certainty are more important than access.
Property and Ownership Trusts
Common Intention Trust
Used to formally record who owns what share of a property.
They are commonly used where:
- contributions are unequal
- families blend finances
- expectations need to be made legally clear
This avoids disputes later and provides clarity for estate planning.
Declaration of Trust
A declaration of trust sets out ownership interests in property or assets.
It is often used alongside:
- severance of joint tenancy
- estate planning for couples
- protection of individual shares
This is a foundational document and often underpins more complex planning.
Additional Trust-Related Documents and Support
Alongside trust creation, I also provide:
- Trust registration (TRS)
- Trustee minutes and ongoing administration
- Letters of wishes (standard and complex)
- Trust variations and amendments
- Loan agreements and deeds of assignment
- Deeds of gift and related documentation
Trusts are not “set and forget”. Ongoing compliance and clarity matter just as much as the original drafting.
A final word on suitability
Not everyone needs a trust.
Some people need a simple will and good family conversations.
Some people need a trust to protect others from risk, chaos, or circumstance.
If you are looking at trusts purely to “avoid tax”, that is usually the wrong starting point. The right question is almost always:
“Who do I want to protect, and from what?”
From there, the correct structure becomes much easier to identify.
If you wish to invest in a fully drafted trust, we can refer you to a private practice who can provide lawyer drafted trusts suitable for your needs, at substantially discounted rates. Please email enquiries@privatetrusts.education for more information.