What is a trust?

England & Wales · Trusts

Quick answer

A trust is a legal arrangement where trustees hold and manage assets for the benefit of beneficiaries, following the terms set by the person who created it (the settlor). Trusts are used to protect assets, provide for children or vulnerable people, control when and how beneficiaries receive money, and for some tax planning. They can be set up during life or created by a will.

Detailed explanation

Three roles define every trust:

Common types include bare trusts, discretionary trusts and life interest trusts, each with different control and tax treatment.

Example scenario

Grandparents set up a trust for their grandchildren's education. They are the settlors, two trusted relatives are the trustees who manage the money, and the grandchildren are the beneficiaries who benefit when the trustees decide.

What happens next?
  1. Complete the questionnaireA few guided questions about you, your family and your wishes.
  2. Human reviewYour answers are checked by the ClearLegacy editorial team for completeness.
  3. Receive your documentsYour will and supporting paperwork are produced, ready to print.
  4. Sign correctlyClear instructions on signing and witnessing so the will is legally valid.
  5. Protect your familyYour wishes are recorded and your loved ones are spared the intestacy default.

Sources

  1. GOV.UK — Trusts and taxes
  2. GOV.UK — Types of trust
  3. Trustee Act 2000 — legislation.gov.uk
Reviewed by
ClearLegacy editorial team
Last reviewed
June 2026
Next review
December 2026
Jurisdiction
England & Wales

Make your will the simple way.

ClearLegacy guides you through a valid England & Wales will online, with a human check.

Start your will

Get your will sorted today.

Start your will