What is a trust?
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:
- Settlor — the person who puts assets into the trust.
- Trustees — the people who legally hold and manage those assets.
- Beneficiaries — the people who benefit.
Common types include bare trusts, discretionary trusts and life interest trusts, each with different control and tax treatment.
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.
- Complete the questionnaireA few guided questions about you, your family and your wishes.
- Structured reviewYour answers are checked automatically for completeness and consistency before your will is produced.
- Receive your documentsYour will and supporting paperwork are produced, ready to print.
- Sign correctlyClear instructions on signing and witnessing so the will is legally valid.
- Protect your familyYour wishes are recorded and your loved ones are spared the intestacy default.
Sources
- GOV.UK — Trusts and taxes
- GOV.UK — Types of trust
- Trustee Act 2000 — legislation.gov.uk
- Reviewed by
- ClearLegacy editorial team
- Last reviewed
- June 2026
- Next review
- December 2026
- Jurisdiction
- England & Wales
Frequently asked questions
What is a trust?
A trust is a legal arrangement where trustees hold and manage assets for beneficiaries under terms set by the settlor. Trusts protect assets, provide for children or vulnerable people, and control how and when beneficiaries inherit.
Why would I set up a trust?
To provide for young, vulnerable or disabled beneficiaries, to control when people inherit, to protect assets in second-marriage situations, or for certain tax and succession planning. Trusts can be made in life or by a will.
Make your will the simple way.
ClearLegacy guides you through a valid England & Wales will online, professionally structured and guided at every step.
Start your will