While wills are essential for outlining your wishes after death, many individuals choose to take their estate planning further – using trusts as a powerful tool for control, protection, and long-term planning. Trusts can offer valuable benefits both during your lifetime and beyond, particularly when it comes to managing wealth, minimising tax, and providing for others with precision.
At Franklins Solicitors, we regularly advise clients on how to incorporate trusts into their wider estate strategy. When used correctly, they offer flexibility, clarity, and peace of mind. But without proper legal guidance, they can also lead to unexpected risks.
Understanding Trusts: more than just for the wealthy
A trust is a legal arrangement where one or more people (the trustees) hold and manage assets on behalf of others (the beneficiaries). Trusts can be used to pass on wealth, protect vulnerable individuals, manage property ownership, or structure family business succession.
Contrary to common belief, trusts aren’t just for high-net-worth individuals. They are widely used in a range of everyday situations, including:
- Providing for children or grandchildren
- Ring-fencing assets from care home fees or divorce
- Protecting beneficiaries with disabilities or addiction issues
- Managing assets after remarriage or in blended families
The key is to choose the right type of trust and ensure it is properly established and maintained.
Declarations of Trust: Clarifying Property Ownership
A declaration of trust is a specific type of legal document used to record how property is owned when two or more people have unequal financial interests. This is particularly common where one person has contributed more to a property deposit or mortgage, or where parents have helped a child buy their first home.
Without a declaration of trust, assumptions can lead to costly disputes later — especially if a relationship breaks down or if one co-owner dies. Having this documentation in place helps to clarify contributions and entitlements from the outset, offering protection and transparency for all parties involved.
The Dangers of Gifting Property into a Trust
In recent years, some individuals have been encouraged to gift their property into a trust as a way of avoiding care home fees or inheritance tax. While this strategy might sound appealing, it can be highly risky – and in many cases, ineffective.
If not done correctly, such transfers may be challenged by local authorities under deprivation of assets rules. They could also create unexpected tax liabilities or even result in the loss of legal control over your home.
At Franklins, we strongly recommend seeking advice before making any decisions about gifting assets. A full understanding of the legal and financial consequences is essential before proceeding.
Trust Registration: Staying Compliant
Since the introduction of the Trust Registration Service (TRS), many Trusts – including some that were previously exempt – are now required to be registered with HMRC. This includes certain bare trusts and co-ownership arrangements that many people don’t realise qualify.
Failure to register a trust can result in penalties and complications, especially when administering an estate or selling a property. Our team provides clear guidance on whether your trust needs to be registered, and we can manage the registration process for you.
Thoughtful Planning, Expert Support
Trusts can be a valuable part of your estate plan – but they must be approached with care. With the right advice, they offer flexibility, protection and a way to meet your family’s needs long into the future. Without proper legal input, however, they can be misunderstood, misapplied, and potentially challenged.
At Franklins, we work closely with individuals, families, and business owners to create bespoke trust and estate planning solutions that align with your goals. Whether you need to create a trust, register an existing one, or understand your options, we’re here to help you plan with clarity and confidence.
Disclaimer: The information provided on this blog is for general informational purposes only and is accurate as of the date of publication. It should not be construed as legal advice. Laws and regulations may change, and the content may not reflect the most current legal developments. We recommend consulting with a qualified solicitor for specific legal guidance tailored to your situation.
Written by Natasha Thorne TEP
Associate Partner, Wills Trusts and Estate Planning at Franklins Solicitors LLP
Specialises in Wills, Inheritance Tax Planning, Lasting Powers of Attorney, Estate Administration, and elderly client matters including Court of Protection and Deputyship.
Natasha Thorne TEP is a Solicitor in the Private Client team at Franklins Solicitors LLP. She joined the firm in 2015 after achieving a First Class Law degree from Canterbury Christ Church University and completing her Legal Practice Course at BPP Cambridge. Natasha qualified in March 2018, following a Training Contract with seats in Corporate, Private Client, and Commercial Property.
Natasha advises on a broad range of Private Client matters, including Wills, Inheritance Tax Planning, Lasting Powers of Attorney, and Estate Administration. She has a particular interest in elderly client work, regularly assisting with Court of Protection applications, Deputyship management, and Care Home contracts. Natasha also works closely with the Property team on Residential Declarations of Trust.
She is a full member of STEP, having completed the STEP Diploma in Trusts and Estates.
Outside of work, Natasha enjoys scuba diving, cycling, and countryside walks with her two miniature Dachshunds, Logan and Noodle.
