Trusts
Trusts can be very valuable. At Paradigm Wills, our legal advisors can set up different types of trust, all of which achieve slightly different objectives. You specify the terms and conditions, and we help you choose the right trust based on your circumstances.
What Types of Trusts Can We Help Set Up?
At Paradigm Wills & Legal Services, we support a full suite of trusts, from simple to highly complex. Here are some of the main types, and how our trust firm can guide you through them:
Protective Property Trust
Ideal for joint homeowners who want to make sure their share of a residence goes to the right people. This trust ensures control over what happens to your share of the family home.
Discretionary Trust
Grants flexibility over how much and when each beneficiary receives funds. It helps prevent misuse and ensures your wealth is distributed wisely and fairly over time.
Flexible Life Interest Trust
A Flexible Life Interest Trust gives a chosen beneficiary income for life while protecting the underlying assets, keeping control over who ultimately inherits and helping manage future family needs.
Asset Protection Trusts / Lifetime Trusts
For protecting your assets during your lifetime, especially if you wish to pass them immediately to your beneficiaries while preserving asset management control.
Disabled Persons and Vulnerable Persons Trust
If you have family members with special needs, this trust safeguards their financial future without jeopardising their eligibility for benefits. It offers lifetime security and oversight.
Trusts Corporate / Professional Trustee Structures
For high-value estates or complex situations, we can help set up trusts managed by professional trustee firms. This is especially useful for business succession or cross-border assets.
Important Legal Terms: Quick Definitions
- Settlor: you — the person who created the trust and funds it.
- Trustee(s): the individuals or trust companies who manage the trust and make sure your instructions are followed.
- Beneficiary: the person (or people) who will receive the trust assets.
- Life tenant: someone entitled to income from trust property during their lifetime.
- Grant of probate: a court document confirming that the personal representatives can administer your estate.
- Tenants in common: co-owners of property who each own a defined share, which can pass under a declaration of trust.
Why Choose a Trust: The Key Benefits
- Control and Flexibility – When you establish a trust, you set the rules. You decide who the beneficiaries are, when they receive distributions, and under what conditions. This level of control sets trusts apart from a simple will.
- Protection – If your beneficiaries are minors, have a disability, or are not yet able to manage finances responsibly, a trust can shield assets from misuse. A specialist trust offers security, ensuring your loved ones benefit in the way you intend.
- Tax Planning & Inheritance Tax Efficiency – Trusts are often an essential part of tax-efficient planning. By placing assets into a trust, you may reduce the impact of inheritance tax, especially on larger estates. Our trust and estate attorney team helps you navigate the complex tax implications and choose the right strategy for your situation.
- Privacy – Unlike a will that goes through public probate, a trust remains confidential. Your trusts and probate matters stay out of the public record, giving you privacy about who inherits what.
- Long-Term Security – Trusts can continue long after you’re gone, allowing for succession planning, preserving a family business, or providing for future generations with professional oversight.
Why Choose Paradigm Wills & Legal Services?
- Our private client team specialises in trust law, estate planning, and trust and estate administration.
- As a trusted law firm, we bring years of experience, legal technical expertise, and professional authority to every case.
- You will receive expert advice in a compassionate, straightforward manner — no jargon, just clarity.
- We work closely with you and your financial or tax advisers, creating bespoke solutions.
- We recognise that every family, every estate, and every trust needs to be different — whether you are high net worth, planning for a disabled beneficiary, or organising corporate succession.
How to Get Started?
- Free initial consultation – We offer a no-obligation chat to assess your situation, answer your questions about wills & trusts, and discuss the most suitable trust options.
- Tailored advice – Our trust attorney or trust law attorney designs a trust structure that aligns with your goals, whether that is tax planning, protecting a vulnerable loved one, or managing future generations.
- Implementation – We prepare the legal documents, set up the trust, help appoint trustees, and guide you on funding the trust.
- Ongoing support – Our trust lawyers and private client team remain on hand to manage the trust, advise on tax returns, and ensure that your trust continues to serve its purpose.
Frequently Asked Questions
Here, we answer the most common questions about wills & trusts, drawing on our private client team’s expertise.
What are the main benefits of setting up a trust?
Trusts offer several advantages:
- Control: You retain the ability to decide how and when assets are distributed to beneficiaries.
- Protection: Trusts safeguard assets for individuals who may be minors, lack financial experience or face external risks like divorce or creditors.
- Tax Efficiency: Certain types of trusts can reduce inheritance tax and other financial liabilities.
- Privacy: Trusts avoid the probate process, keeping your estate details confidential.
- Flexibility: Many trusts allow for ongoing adjustments, ensuring they meet changing family needs.
By setting up a trust through Paradigm Wills and Legal Services, you can secure your assets for future generations while maintaining peace of mind.
Who can act as a trustee?
You have options. Your trustees can be:
- Family members or friends who understand your wishes.
- A trust company or professional trustee, such as solicitors or financial advisors, who bring specialist experience and impartiality.
We help you choose reliable trustees who are able to manage the day-to-day administration and long-term responsibilities.
Are there ongoing costs for managing a trust?
Yes, managing a trust typically involves ongoing costs, which may include:
- Administrative fees for maintaining records and reporting to HMRC.
- Trustee fees, especially if professional trustees are appointed.
- Legal and accounting expenses, depending on the complexity of the trust.
At Paradigm Wills, we provide transparent advice about these costs during the trust setup process.
Can a trust help me reduce inheritance tax?
Yes, when used effectively, trusts can be central to tax and trusts planning. For example:
- Putting assets into a trust may reduce the value of your estate for IHT purposes.
- Family trusts can be structured so that wealth is passed over time rather than all at once, optimising your tax planning.
Our expert trust law attorney team helps you identify tax-efficient structures tailored to your goals.
Will my trust remain private after my passing?
Can I change beneficiaries later?
The ability to modify a trust depends on the type of trust you establish:
- Revocable Trusts: These allow you to make changes, including adding or removing beneficiaries.
- Irrevocable Trusts: Once established, these trusts generally cannot be altered.
Paradigm Wills can help you choose a trust that offers the flexibility you need to adapt to future circumstances.
Do you offer trust services for business owners?
Yes, Paradigm Wills offers trust services tailored for business owners. Trusts can be used to:
- Protect business assets from personal liabilities.
- Plan for business succession and ensure continuity.
- Minimise inheritance tax related to business assets.
Whether you own a family business or a large enterprise, we can create a trust that secures your interests and aligns with your long-term goals.
What kinds of assets can go into a trust?
Almost anything valuable can be placed in a trust, including:
- Real estate: residential or commercial property
- Financial assets: savings, investments, pensions
- Personal property: jewellery, art, business shares
- Business interests: beneficial for family business succession planning
Our trust and probate team assesses your assets and recommends how best to transfer them into a trust.
Will my trust be valid if I move to a different area or country?
Trusts created in the UK remain valid if you relocate within the country. If you move abroad, the local laws of your new jurisdiction may affect the administration and operation of the trust. It’s important to consult legal experts to review and, if necessary, update your trust to ensure its continued validity. Paradigm Wills can provide guidance on maintaining your trust in these situations.
What are the current inheritance tax rules in England and Wales?
- The nil-rate band (NRB) is £325,000, frozen until at least April 2030.
- There is an additional residence nil-rate band of £175,000 if you leave your home to direct descendants.
- The standard Inheritance Tax rate is 40 per cent on the value above the threshold.
- These threshold freezes mean that IHT receipts are rising fast. In the first five months of the 2025/26 tax year, HMRC collected £3.7 billion, up 5 per cent year on year. This trend underscores how important tax-efficient estate planning has become.
What about mental capacity and powers of attorney?
Trust planning often goes hand in hand with discussing mental capacity. You may also require a power of attorney, specifically a Lasting Power of Attorney (LPA) for property and financial affairs, to ensure someone can manage your trust assets if you cannot. We advise on both trusts and powers of attorney (LPA) to give you comprehensive protection.
Is cross-border estate planning something you handle?
Absolutely. We assist clients with cross-border assets — whether in other countries or multi-jurisdictional families. Our trust lawyers coordinate with international advisors to ensure your trust complies with both the UK and international law.
How is a trust different from a will?
A will is a legal document that takes effect when you pass away; it goes through probate. A trust, by contrast, can:
- Be effective during your lifetime (“lifetime trust”)
- Avoid probate and offer privacy
- Provide ongoing asset management after your death
A will and trust lawyer from our team will advise which solution (or combination) is right for you.
What about succession planning for a family business?
Trusts are commonly used for succession planning in family businesses. By placing business shares into a discretionary trust or corporate trust, you can:
- Stabilise leadership across generations
- Maintain family control while planning for taxes
- Avoid potential disputes and provide continuity
Is There Any Risk in Setting Up a Trust?
While trusts are powerful, they must be handled carefully. Some of the risks:
- Opaque structures: Poorly designed trusts can be misused. Recent research shows over £64 billion of property in England and Wales is held in opaque trusts, raising transparency concerns.
- Regulatory and reporting burden: Trusts must comply with HMRC and possibly international disclosure rules.
- Cost: If you appoint a professional trustee, there are fees.
- Tax changes: Tax law evolves. That is why working with experienced trust lawyers and tax-and-trusts advisers is critical.
Take Action Today
At Paradigm Wills & Legal Services, we serve clients across Birmingham, Leicester, Ealing, Hampstead, Harrow, Highbury, London, and Tottenhaem, and beyond. Our team of trust and estate attorneys, will and trust lawyers, and professional trustees have helped families, individuals, and business owners navigate every aspect of trust creation, administration, and succession.
Take the next step towards peace of mind. Book your first chat with a legal professional today.
Contact Us:
Leicester Office: 0116 464 7055
London Office: 0208 194 7189
Email: [email protected]
Or reach out via our contact form on the website.
Explore our full range of services at Paradigm Wills & Legal Services – estate planning, wills, powers of attorney, trusts, and more.
Let us help you build a robust, tax-efficient trust that protects your loved ones, your assets, and your legacy.
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