When you write a will, you do not have to leave everything outright to the people who inherit. UK law lets you direct that some or all of your estate is held in a trust after you die, managed by trustees you choose, for the benefit of the people you name. This is called a trust in a will, a will trust, or a testamentary trust, and it only comes into being when you die.
People use a trust in a will to hold money for young children, to protect an inheritance in a second marriage, to provide for a disabled or vulnerable relative without harming their benefits, and for inheritance tax planning. This guide explains what a trust in a will is and how it differs from a trust set up during your lifetime, the main types of trust used in wills, why people use them, how they are set up, what they cost, and the ongoing duties involved. Because trusts carry real tax and administrative consequences, this is an area where professional advice matters, and this guide points you to the right kind of adviser at the end.
What a trust in a will is
A trust in a will is a trust created by the will itself, which comes into existence only when the person who made the will dies. Rather than leaving an asset directly to a beneficiary, the will directs that trustees hold it and look after it for one or more beneficiaries under terms the will sets out.
A trust is, in the words of gov.uk, “a way of managing assets (money, investments, land or buildings) for people”. Three roles matter. The settlor is “the person who puts assets into a trust” – with a will trust, that is the person who made the will. The trustees are “the person who manages the trust”. The beneficiaries are “the person who benefits from the trust” (gov.uk – Trusts and taxes).
The defining feature of a will trust is timing. It is written into the will while you are alive, but it does nothing until you die. At that point the trust springs into life, the trustees take control of the assets set aside for it, and they run it according to your instructions.
How a will trust differs from a lifetime trust
A lifetime trust (also called an inter vivos trust) is set up and funded while you are alive. You transfer assets into it during your lifetime, it operates immediately, and it can have tax consequences for you straight away, such as an entry charge for inheritance tax on larger transfers.
A will trust is created by your will and takes effect only on death. Nothing moves into it while you are alive; the assets come from your estate once you have died. This makes a will trust simpler to set up in your lifetime, because you are only writing instructions, not transferring assets or triggering immediate tax.
| Feature | Trust in a will (will trust) | Lifetime trust |
|---|---|---|
| When it starts | On death | Straight away, while you are alive |
| How it is created | By the will itself | By a separate trust deed |
| Where assets come from | Your estate, after death | Assets you transfer in during life |
| Immediate tax on setup | None during your lifetime | Possible inheritance tax entry charge on larger transfers |
| Can you change it | Yes, by changing your will while you have capacity | Depends on the type; many are hard to unwind |
The main types of trust in a will
Three types of trust turn up most often in wills: the discretionary trust, the life interest trust, and the bare trust. gov.uk sets out the standard definitions of each (gov.uk – Types of trust).
Discretionary trust
In a discretionary trust the trustees hold the assets for a group of potential beneficiaries and decide how and when each of them benefits. gov.uk describes it as a trust “where the trustees can make certain decisions about how to use the trust income, and sometimes the capital”.
No beneficiary has a fixed right to a set share. Instead, the trustees weigh up the beneficiaries’ circumstances over time and pay out what they judge appropriate, guided by a letter of wishes you leave alongside the will. That flexibility is the point: it lets the trust respond to things you could not predict, such as a beneficiary’s divorce, bankruptcy, or a change in the tax rules. It is often used where a beneficiary cannot manage money themselves, or where you want to keep an inheritance protected rather than handed over outright.
The trade-off is tax. A discretionary trust falls inside the relevant property regime, which means the trust itself faces an inheritance tax charge on every tenth anniversary of the date it started, and a smaller charge whenever assets leave it. The maximum rate is 6%, and a trust holding less than the available nil-rate band pays nothing, but the calculation and the reporting are the trustees’ responsibility. Our guide to the discretionary trust 10-year charge and quick succession relief explains how the charge is worked out and what trustees have to file. Leaving a home into a discretionary trust also generally forfeits the residence nil-rate band, because no single beneficiary has an automatic right to inherit the property – a significant and commonly overlooked restriction for anyone using this structure to pass on a family home.
Life interest trust (immediate post-death interest)
A life interest trust gives one person the right to benefit from an asset for their lifetime, while preserving the underlying capital for others. gov.uk calls this an interest in possession trust: one “where the trustee must pass on all trust income to the beneficiary as it arises”. A common example is the family home: the surviving partner (the life tenant) has the right to live there or receive the income for life, and when they die the property passes to the remaindermen, usually the children.
Where a life interest is created by a will and takes effect immediately on death, it is known as an immediate post-death interest, or IPDI. HMRC’s rules (IHTA 1984, s49A) set three conditions for an IPDI: the beneficiary “became beneficially entitled to the interest on the death of the testator or intestate”, the trust is not a trust for a bereaved minor, and it is not a disabled person’s interest (HMRC – IHTM16061). An IPDI for a surviving spouse or civil partner qualifies for the inheritance tax spouse exemption, so no tax is due on the first death, which is why it is a popular tool for second marriages and blended families. Leaving the family home into an IPDI is also one of the few trust structures that keeps the residence nil-rate band available: because the life tenant is treated as inheriting the property under IHTA 1984, s8J(4)(a), the home still counts as passing to a direct descendant when they eventually inherit it outright – the opposite result to the discretionary trust forfeiture described below.
Bare trust
A bare trust is the simplest form. gov.uk explains that “assets in a bare trust are held in the name of a trustee. However, the beneficiary has the right to all of the capital and income of the trust at any time if they’re 18 or over”. In a will, a bare trust is most often used to hold a gift for a child until they are old enough to receive it. The child is absolutely entitled to the assets; the trustees simply hold and manage them until the child turns 18 (16 in Scotland).
Trust for a vulnerable beneficiary
Where a beneficiary is disabled or a bereaved minor, a will can use a special trust that attracts favourable tax treatment. gov.uk defines a vulnerable beneficiary as “someone under 18 whose parent has died” or a disabled person receiving certain benefits such as Personal Independence Payment or Attendance Allowance. These trusts can have “no Inheritance Tax charge” on assets passing in and are exempt from the usual ten-year charges (gov.uk – Trusts for vulnerable people). A discretionary trust is often used for a disabled beneficiary who receives means-tested benefits, because the beneficiary has no fixed entitlement that the benefits system can count against them. Getting this right is specialist work.
| Type of trust | How it works | Common use in a will |
|---|---|---|
| Discretionary trust | Trustees decide how and when beneficiaries benefit; no fixed shares | Protecting an inheritance, vulnerable beneficiaries, keeping flexibility |
| Life interest / IPDI | One person benefits for life; capital preserved for others | Second marriages, blended families, providing for a spouse then children |
| Bare trust | Beneficiary is absolutely entitled; trustees hold until they are 18 | Leaving a gift to a young child |
| Vulnerable beneficiary trust | Special tax treatment for a disabled person or bereaved minor | Providing for a disabled relative without harming their benefits |
Why people use a trust in a will
A trust lets you keep a degree of control over what happens to your assets after you die, rather than handing them over outright. The main reasons people use one are set out below.
Protecting an inheritance for young children
Children cannot inherit outright until they are 18. A will trust, often a bare trust or a discretionary trust, holds their inheritance and lets the trustees use it for their upbringing, education and maintenance in the meantime. Without a trust, a child’s inheritance is held on statutory trusts anyway until they reach 18, but a purpose-built trust gives you far more say over the timing and the terms – for example, delaying full access until a later age.
Second marriages and blended families
This is one of the most common reasons for a trust in a will. If you leave everything outright to a new spouse, they are free to leave it to whomever they choose, which could cut out your own children. A life interest trust solves this: the surviving partner can live in the home or take the income for life, but the underlying capital is ring-fenced and passes to your children when the survivor dies. Our mirror wills guide explains why matching wills alone cannot guarantee this, and why a trust or mutual will is often needed to lock the plan in.
Providing for a vulnerable or disabled relative
Leaving money outright to a relative who receives means-tested benefits, or who cannot manage money, can do more harm than good – a lump sum can disqualify them from benefits or be lost. A discretionary or vulnerable beneficiary trust lets the trustees provide for them carefully over time without those risks, and can attract favourable tax treatment as noted above.
Inheritance tax planning
Some trusts help manage an estate’s inheritance tax position, though they are not a way to avoid the tax altogether. A life interest trust for a spouse uses the spouse exemption on the first death, and trusts can be used alongside the nil-rate band and other reliefs. Tax planning with trusts is complex and the rules change, so it is one area where professional advice is essential. See our guide to inheritance tax exemptions and reliefs for the wider picture.
How a trust in a will is set up
A trust in a will is created by the will itself, so setting one up is part of writing or updating your will. There is no separate trust deed to sign in your lifetime and nothing to transfer, because the trust does not exist until you die.
The steps are:
- Decide what the trust is for and who should benefit – for example, protecting the home for children while providing for a new spouse.
- Choose the type of trust that fits – discretionary, life interest, bare, or a vulnerable beneficiary trust.
- Appoint trustees in the will. These can be the same people as your executors, or different people, or a mix, and can include a professional such as a solicitor.
- Set the terms – who benefits, when, and on what conditions – with the drafting done by a solicitor or STEP-qualified estate planner.
- Leave a letter of wishes where the trust is discretionary, to guide the trustees on how you would like them to use their discretion.
The trust only comes into existence on your death. At that point the trustees take control of the assets set aside for it and begin administering it. Because a badly drafted trust can create tax problems or fail to do what you intended, this is not a job for a DIY or template will. Our guide to how to write a will explains where trusts fit into the wider process.
Trustee duties and trust registration
Once the trust is up and running, the trustees carry legal responsibility for it. Their duties include looking after the trust assets, following the terms of the will exactly, acting in the beneficiaries’ best interests, keeping proper accounts, and dealing with tax and administration. Trustees can be held personally liable if they get it seriously wrong, which is why many appoint or take advice from a professional.
Registering the trust with HMRC
Most trusts must be registered with HMRC’s Trust Registration Service (TRS). The trustees are responsible for registering. gov.uk sets out one main exception for will trusts: “a will trust – set up on death that takes assets from the estate and is closed within 2 years of death” does not need to register, unless it becomes liable to tax. A trust that continues beyond that two-year window must register, and any taxable trust must register within 90 days of being set up or becoming liable to tax (gov.uk – Register a trust as a trustee).
Ongoing trust tax
A continuing trust may need to complete its own tax returns and pay income tax, capital gains tax or periodic inheritance tax charges, depending on its type. Discretionary trusts, for example, are subject to their own regime of charges over time, while an IPDI for a spouse is not treated as relevant property and instead forms part of the life tenant’s estate on their death. These rules are detailed and change from time to time, so a continuing trust usually needs an accountant or solicitor to keep it compliant.
What a trust in a will costs
A will that includes a trust costs more than a simple will, because it takes more advice and more careful drafting. Straightforward wills containing a trust are commonly quoted from around £500 to £1,500 or more by estate-planning firms and solicitors in 2026, with more complex arrangements running to several thousand pounds. These are typical market ranges rather than a fixed tariff, and the right figure depends on the value of the assets and the complexity of your family situation, so always ask for a fixed-fee quote.
There are also ongoing costs once the trust is running. Trustee administration, accountancy and any trust tax returns often come to a few hundred pounds a year for a modest trust, more where a professional trustee is involved or the assets are substantial. Factor these ongoing costs in when deciding whether a trust is worth it, especially for a smaller estate.
By comparison, a simple solicitor-drafted will without a trust typically costs roughly £150 to £500, as covered in our how to write a will guide. The extra cost of a trust buys control and protection that a straightforward gift cannot provide, but it is only worth paying where those benefits apply.
Common questions
Can the trustees be the same as the executors?
Yes. It is common for the same people to be named as both executors and trustees. The executors deal with winding up the estate – collecting assets, paying debts and tax, and obtaining probate – while the trustees take over any assets that pass into the trust and manage them for the beneficiaries. One person can do both jobs in turn. You can also appoint different people to each role if you prefer.
Is a trust in a will the same as a discretionary trust?
No. A discretionary trust is one type of trust that can be created in a will, but it is not the only one. A trust in a will can be a discretionary trust, a life interest trust, a bare trust, or a trust for a vulnerable beneficiary, each with different features and tax treatment. “Trust in a will” is the general term for any trust the will creates.
Does a trust protect assets from care home fees?
This is a common reason people ask about trusts, and it is one of the most misunderstood. A trust set up in a will can, in some circumstances, protect one partner’s share of a home for the children when the first partner dies, because that share passes into trust rather than to the survivor outright. But schemes that claim to shelter your own assets from care fees during your lifetime are risky and can be challenged by the local authority as deliberate deprivation of assets. This is firmly an area for specialist advice, not a DIY arrangement. See our guide to deprivation of assets and care fees for how councils actually test for this and what genuinely protects a home in the means test.
What happens if I die without a will but assets go to children?
If you die without a will (intestate) and children inherit, their share is held on statutory trusts until they reach 18. You have no say over the terms, the trustees are usually the estate administrators, and the children receive everything outright at 18. Making a will lets you set up a trust on your own terms instead. Our intestacy rules guide explains what happens when there is no will.
Where to get advice
Setting up a trust in a will is specialist work with real tax and legal consequences, and this guide is for general information only – it is not legal or tax advice, and it covers the law in England and Wales, with some differences in Scotland and Northern Ireland.
For a trust in a will, use a solicitor who specialises in wills and estate planning, or an adviser who is STEP-qualified. STEP is the Society of Trust and Estate Practitioners, the professional body for the sector, and its qualification is a recognised mark of expertise in trusts and estates. You can find a regulated solicitor through the Law Society’s Find a Solicitor service and a STEP member through the STEP directory. Ask for a fixed-fee quote, check whether the adviser is regulated, and be clear about both the setup cost and the likely ongoing costs before you go ahead.
Summary
A trust in a will is a trust created by your will that takes effect only when you die, letting trustees you choose look after part of your estate for the people you name. The main types are the discretionary trust, the life interest trust (often an immediate post-death interest), the bare trust for young children, and special trusts for vulnerable beneficiaries. People use them to protect inheritances for children, provide for a spouse while safeguarding children in a blended family, look after a vulnerable relative, and help with inheritance tax planning. They cost more than a simple will and bring ongoing trustee duties and, in most cases, registration with HMRC’s Trust Registration Service. Because the tax and legal rules are strict, a trust in a will should always be set up with a specialist solicitor or a STEP-qualified adviser.
This guide covers the law in England and Wales, with some differences in Scotland and Northern Ireland. It is for information only and does not constitute legal or tax advice. Trusts are complex and carry tax and administrative consequences: speak to a solicitor who specialises in wills and estate planning, or a STEP-qualified adviser, before setting one up. Sources: gov.uk – Trusts and taxes, gov.uk – Types of trust, gov.uk – Trusts for vulnerable people, gov.uk – Register a trust as a trustee, HMRC – IHTM16061 (immediate post-death interest). Cost figures are typical 2026 market ranges drawn from published estate-planning and solicitor pricing, not a fixed tariff. Last verified July 2026.