April 21, 2026
Trusts are one of the most powerful tools in estate planning. They can protect family wealth, support vulnerable beneficiaries, reduce inheritance tax, and give you far more control over how and when your assets are passed on. But they’re also widely misunderstood — and often discussed only with a solicitor.
Trusts, however, sit at the intersection of legal, tax and financial planning, so no single professional can cover everything. If you’re thinking about using a trust, your Independent Financial Adviser (IFA) should be one of the first people you speak to.
Rebecca Hammett, IFA and Director at Talis IFA, explains why.
“I’ve been getting more enquiries than usual about trusts,” she says. “People are reading about how trusts can help to protect their assets, and turning to AI for help. The trouble is that it’s a complex area, and AI can’t look into your full financial picture the way your IFA can, so it can never give you an answer that’s tailored to your specific objectives and circumstances.
“In this article, I wanted to answer some of the questions I get asked most frequently. But the bottom line is, if you’re thinking about creating a Trust, you need to talk to your IFA, not just your solicitor or accountant.”
Although trusts are legal structures, they have long‑term financial consequences, and many people don’t realise that lawyers and accountants aren’t regulated to give financial advice.
That means that:
A trust is a legal arrangement where assets are managed by trustees for the benefit of someone else (the beneficiaries). It separates legal ownership (trustees) from beneficial ownership (beneficiaries).
“I suggest to my clients that they think of it a bit like creating a limited company,” says Rebecca. “The trust is the company, and the trustees are the directors, who are there to manage the company and its assets. Like a limited company, trusts have rules, and the trustees, like directors, have certain obligations. Not all trusts are the same; they have differing taxation rules and intentions.”
There are a number of different types of trust available in the UK, the most commonly used being:
Each has different tax rules and levels of control, and your IFA can talk you through the different aspects of the types of trust, to work out together which is most appropriate for your circumstances and objectives.
Many people want to retain control of their trust, and while you can be a trustee of your own trust, you have an obligation to act in the beneficiaries’ best interests and carry out strict legal duties. Unless you use a very specific type of structure, you should be prepared to give up your own access to the capital you are placing into the trust.
And if there’s a chance you may change your mind later, it’s important to know that, while some trust types can be amended or wound up; others cannot. It depends on the trust deed and the type of trust.
This is also a common question from people starting estate planning. A Will takes effect on death; a trust can operate during your lifetime, after death, or both. Much estate planning uses both tools together.
Many people explore the idea of creating a trust to protect their assets and ensure that their wealth is distributed as they want after their death. Common reasons include:
When setting up a trust, it’s important to understand what you want to achieve. Setting up a trust may also have unforeseen implications for your financial future – which is why it’s important to take advice from your IFA. And remember that a trust isn’t necessarily appropriate for everyone.
This is one of the most common questions. The answer is: sometimes, depending on the type of trust and how it’s funded.
Your IFA will help you understand:
Trusts can be powerful tools for minimising your IHT liability — but only when handled appropriately and used as part of a wider financial plan. If you’d like help to understand IHT, start by downloading our Two Certainties guide for the 2026/27 tax year.
This is a very common question — and a risky area, particularly if you look to do this within your lifetime. Local authorities can challenge transfers into trust if they believe it was done to avoid care costs (“deliberate deprivation of assets”).
If they decide that deliberate deprivation has taken place, they can:
Putting your home into a trust is not a guaranteed or risk‑free way to avoid care fees. It also brings with it added complications, including issues if you want to sell your home or borrow against it. Additionally, would you want to pay rent to live in your home? That could be the case if IHT is a consideration.
If you are considering this step, it’s essential that you take specialist legal and financial advice to avoid unintended consequences.
Another common question is whether trusts can help protect family businesses by qualifying for Business Relief (BR) or Agricultural Property Relief (APR).
Business Relief (BR)
Most unlisted trading businesses qualify for BR, which can reduce inheritance tax on business assets by up to 100%. Trusts can help pass business interests to the next generation while maintaining control, but the structure must be carefully planned to preserve BR.
Agricultural Property Relief (APR)
Farms and agricultural land may qualify for APR, which can also reduce inheritance tax significantly.
Trusts can help to:
Placing farmland or other agricultural assets into trust can be beneficial, but APR can be lost if the trust is set up incorrectly, so it’s essential to take coordinated advice from your solicitor, accountant and IFA before transferring business or agricultural assets into trust.
How an IFA helps you decide about Trusts
Trusts are a complex area, but an experienced IFA like Rebecca can explain your options in plain-English and give you the confidence to decide whether a trust is appropriate for you and could help you to achieve your financial goals.
Your IFA will work alongside your solicitor and accountant to ensure the trust is funded and invested appropriately and remains aligned with your long‑term objectives, and help to ensure that the trustees are acting in line with the Trustee Act 2000 and meeting their obligations
Remember that a trust is only one piece of your estate planning, and that to be fully effective, everything needs to be fully integrated.
The bottom line is that a trust is not just a legal document — it’s a long‑term financial commitment. Your IFA will give you advice that looks beyond the paperwork and is focused on your objectives, not just the numbers. At Talis IFA, we call that our ‘life first, money second’ approach.
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