Family Trusts

What is a Family Trust and how does it work?

A Family Trust is a legal arrangement used to protect and manage assets, most often the family home, for the benefit of loved ones. In simple terms the person setting up the trust (known as the settlor) transfers ownership of their property or assets into the trust. From that point the trustees (usually trusted family members or professionals) manage the assets for the benefit of chosen beneficiaries.

Why do people create Family Trusts?

Family Trusts have been used in England for centuries to pass on wealth securely between generations. Over time they have become a valuable tool for ordinary families who want to:

• Simplify estate administration and reduce delays after death.

• Protect family assets from risks such as divorce, debt, or poor financial decisions.

• Ensure the family home and other key assets stay within the family line.

Does a Family Trust reduce Inheritance Tax or care fees?

A Family Trust may help with long-term estate planning, but it’s important to understand its limits.

• For Inheritance Tax, assets in a trust can still be counted within the settlor’s estate if they continue to benefit from them (for example, living in the house rent-free).

• For care fees, local authorities assess ownership carefully, and trusts created mainly to avoid care costs may not be disregarded under deliberate deprivation rules.

Even so, a well-structured Family Trust can still offer valuable control and continuity. It allows you to ensure assets are managed responsibly and passed down in line with your wishes.

The benefits of Family Trust planning

When used correctly, a Family Trust can:

• Keep assets protected for future generations.

• Allow family members to benefit while the trustees maintain control.

• Reduce probate complexity and help avoid family disputes.

• Create a structure for multi-generational wealth planning.

Professional Family Trust advice

At Moneybox Wills and Trusts, we offer tailored Family Trust solutions to suit estates of all sizes. Each trust is carefully drafted to meet strict legal and tax requirements, giving you confidence that your planning is sound and effective.

Book a free initial consultation today to discover how a Family Trust can safeguard your home and protect your legacy for generations to come.