Types of Trusts

There are many types of Trusts available, and although each one is designed for specific purposes, their principal design is for the long-term protection of assets and estate preservation for future generations. Trusts allow you to give away assets but attach terms that they must be dealt with in a certain way. The most common reason to set up a Trust is to provide for a child who will only receive access to the assets once they have reached a certain age.

What is a Trust?

Trusts have been used by families for centuries to protect wealth. A trust is a formal transfer of assets (whether they be property, shares or just cash) to a small group of people known as 'Trustees' with instructions that they hold the assets for the benefit of others. If the trust is to be made in your lifetime to take immediate effect, then it is usually evidenced by a trust deed and often referred to as a 'settlement'. If it is to be created on or shortly after your death then the trust rules must be set out in your Will.

Whether by lifetime settlement or by Will, the trust instrument will state who is responsible for looking after the gifted assets (the Trustees), who is to benefit (the Beneficiaries) and any conditions or rules that the Trustees or Beneficiaries must adhere to. How long a trust lasts is entirely as your think appropriate but the trust period must be stated in the trust document. It might be for just a few years, perhaps during a person's widowhood or until a child attains a certain age or marries. Trusts can last much longer however – up to 125 years. It is usually advisable to give the Trustees the power to terminate the trust at their discretion.

Lifetime Trusts

Also known as Asset Protection Trusts, they are used to ring fence assets providing peace of mind that the assets are protected to provide for chosen beneficiaries. Asset protection trusts are a lifetime settlement used to provide for a surviving spouse and future generations and to attempt to protect against the possible claims of third parties. Placing your home and/or other assets in trust whilst you are still alive can provide numerous benefits to you and your family. Lifetime trusts, not only provide peace of mind, but they also allow you to retain full control over the property and assets placed in the trust and to continue to benefit from them. In addition, for most people, they also provide long term financial savings.

For more information on Lifetime Trusts or if you would like to know more about our Home Protection Plan then please feel free to take a look at Family Asset Protection Ltd.

Will Trusts

Protective Property Trust

Protects the deceased's share of the family home for the children from the effects of survivor remarrying, care costs and is especially effective where the testator(s) have children from previous relationships and wish them to benefit.

Discretionary Trust

Can be used to ring fence assets. Beneficiaries can be spouse and children. This type of trust can be used effectively where there are concerns regarding children, such as financial, drinking, drug or gambling related problems.

Discretionary Trust for a Disabled Person

Can be tax efficient as well as providing for the needs of the disabled beneficiary. For beneficiaries who are unable to manage their own affairs by way of mental or physical disability.

Business Assets Trust

Referred to as a BPR trust where business assets are eligible for business property relief. Gives spouse right to income and can utilise the tax benefits available under the current rules of this trust.

Gift on Life Interest

Effective way for the client to preserve their assets but provide for spouse/partner. Life interest trust or an Immediate Post Death Interest trust (IPDI) gives the life tenant income until death. It can also include express provisions for trustees to advance capital and income. On death of remaining spouse/partner, the assets pass to named beneficiaries.

Flexible Life Interest Trust

Extremely flexible giving trustees power to advance income and capital at their discretion. Ability to use all the testators' assets, utilise both transferable nil rate bands and can provide the trustees with the ability to tax plan for the future whilst providing to the surviving spouse and children.

Right to Occupy Trust

It is not uncommon to have a member of your family living at your home and if you die they may need your protection to allow them to remain in the property. This can be for a specified number of years, for life or until the individual no longer requires to remain in the property. This protection can only be given by this Trust.


By making a Will you decide exactly how your estate is distributed and plan for the needs of your individual circumstances. No matter how complicated or simple your Will may be, we will work closely with you, listening carefully to your needs and wishes, providing clear advice based on all of the information you give.

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Estate Planning

Planning your estate can involve many different aspects from basic Wills to Will Trusts and Lifetime Trusts. Modern families can have complicated dynamics and there is often a potential for conflict in the future if relationships break down or after the death of a client. Estate planning can also help to minimise tax liabilities or other expenses after your death.

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Other Services

We can also assist you with the following; setting up a lasting power of attorney, severing a joint tenancy on property, Will storage and related document storage, pre-paid funeral planning and probate. If you have any questions about our services or if you would like arrange a free consultation then please do not hesitate to contact us.

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About Chris Lamb Will Writing Ltd

An independent Will Writing Company based in Chester-Le-Street providing everything from Wills, Lasting Power of Attorney, Trusts and Pre-Paid Funeral Plans. We cover County Durham, Northumberland, Tyne & Wear and Teesside.

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