What Is a Will Trust?
At Complete Estate Protection, we are committed to guiding our clients through every stage of estate administration. In recent years, the probate process in EnWills and trusts are often seen as completely separate parts of estate planning—but what if you could combine the benefits of both? That’s where Will trusts come in.
Whether you’re looking to protect your estate, minimise taxes, or ensure loved ones are cared for after you’re gone, a Will trust could be the solution. In this guide, Complete Estate Protection breaks down everything you need to know about Will trusts: how they work, why they matter, and how we can help you set one up.
What Is a Will Trust?
A Will trust, also known as a testamentary trust, is a legal structure created within your Will that only takes effect after your death. It ensures that specified assets are held in trust—rather than passed directly to beneficiaries—allowing you to control how and when those assets are distributed.
These trusts are managed by appointed trustees, who carry out your instructions for the benefit of the beneficiaries.
Common Reasons to Use a Will Trust:
- Managing money for young or vulnerable beneficiaries
- Protecting assets from potential risks (like divorce or bankruptcy)
- Delaying asset distribution until a certain age or milestone is reached
- Reducing the risk of assets being used to pay for long-term care
Types of Will Trusts
Not all Will trusts are created equal. The right one depends on your personal and family situation:
- Discretionary Trusts – Trustees decide how and when to distribute assets
- Life Interest Trusts – Allow a beneficiary to benefit during their lifetime, with the capital preserved for others later
- Bare Trusts – Assets are held for one specific beneficiary who has full rights at age 18
Things to Consider:
- Are your beneficiaries underage or vulnerable?
- Do you want to give trustees flexibility or lay out specific instructions?
- How complex is your estate, and how does this trust fit into the broader plan?
Setting up the right trust involves careful thought and legal insight. That’s where Complete Estate Protection can guide you through the process.
Why Consider a Will Trust?
✅ Control Over Your Legacy
Will trusts let you control who receives what—and when. You can ensure your assets are used responsibly and in accordance with your wishes.
✅ Asset Protection
Trusts can shield your assets from outside claims, poor money management, or significant life events like divorce or remarriage.
✅ Privacy
Unlike Wills, which become public during probate, trust arrangements can remain private, protecting sensitive financial details.
✅ Tax Planning
In the right circumstances, a Will trust can help reduce inheritance tax and other liabilities, keeping more of your estate in the hands of your loved ones.
✅ Flexibility
Many trusts allow for updates or adaptations as your family’s needs evolve over time.
Will Trusts and Care Home Costs
One particularly strategic use of a Will trust is protecting your home from care fees.
If you and your partner own your property as tenants in common, you can each leave your share to a trust. When one partner passes away, the surviving partner retains a “life interest”—the right to live in the home or benefit from its sale. Meanwhile, the deceased’s share is preserved in trust for the next generation.
Key Benefit:
This setup often means that only the surviving partner’s share of the property is considered by the local authority if care is needed—helping to protect part of the estate from care home costs.
The government’s Charging for Residential Accommodation Guide (CRAG) confirms that this strategy does not qualify as “deliberate deprivation” of assets, making it a legitimate and ethical planning tool.
Tax Implications of Will Trusts
Will trusts can be tax-efficient—but they must be set up and managed properly to avoid unexpected liabilities.
Capital Gains Tax (CGT)
Trustees face higher CGT rates—20% on most assets and 28% on residential property—and only receive half the personal tax-free allowance. Transfers to beneficiaries may also trigger CGT.
Income Tax
If the trust generates income, taxes may be owed either by the trustees or beneficiaries depending on the structure. Complex rules apply, especially when income is not automatically passed to beneficiaries.
For this reason, we highly recommend working with a qualified estate planning expert like Complete Estate Protection to structure your trust effectively.
Final Thoughts: Is a Will Trust Right for You?
Will trusts offer a versatile and effective way to:
- Secure your assets
- Protect your loved ones
- Reduce tax exposure
- Preserve privacy
- Avoid unwanted outcomes during probate
While they can be complex, the benefits are clear. And with the right legal support, setting one up doesn’t have to be overwhelming.
Need Help? Talk to Complete Estate Protection
At Complete Estate Protection, we specialise in helping individuals and families plan for the future with confidence. From simple Wills to complex trust structures, our team offers clear, practical guidance every step of the way.
Book a free consultation today to explore how a Will trust could fit into your estate plan.
Contact us today to start your journey toward securing your legacy.
