How Much Money Do You Need to Set up a Trust in the UK?
 
The cost of creating a simple trust is usually in the region of £1000 - £1,500. The exact amount depends on how much legal advice you need and how long it takes your solicitor to draft the precise wording.
 
Trusts come in many shapes and sizes and they are a flexible way to structure your financial affairs. The law behind them can be complicated, so you must use a solicitor to make sure it is set up correctly based on your personal circumstances.
 
If you come to them prepared with an understanding of the key information you need to set up your trust, this can significantly reduce the cost of the initial legal advice. This information includes:
 
If you have a complex collection of assets and business interests and any foreign assets requiring tax planning, the cost can be as high as £5,000 - £10,000.
 
What Are Trusts Typically Used For?
 
The property inside a trust is treated separately from property owned by individuals for tax purposes, and that can be very useful especially when it comes to Inheritance Tax.

They are commonly used to protect and control family assets, to ensure finances are secure when someone is too young to handle their own affairs, to set up long-term care for someone less able to take care of themselves, for their own future care home fees, and for the more obvious purpose of passing on assets either during someone’s lifetime or upon their death. 
 
Originally introduced during the reign of Henry VIII in the 16th century, trusts were invented to solve a gap in the justice system around Wills and how property should be transferred. Trusts are a useful mechanism for passing on property in a Will whilst still retaining some control over what happens to it.
 
Today, trusts are not just used in Wills and people are realising they are not reserved for the very wealthy either. There are only about 200,000 trusts in the UK at the moment but 1/5th of those were set up in the financial year between March 2021-2022.

What Are the Different Types of Trust?
 
There are a variety of trusts out there to choose from. Some trusts are set up in a Will to take effect after someone dies, and others are set up during their lifetime. Your solicitor will help you pick the right type for you based on your needs.
 
Here are the most common types of trust you might use:
 
Bare/Simple Trust:
 
Interest in Possession Trusts:
 
Discretionary Trust:
 
Accumulation Trusts:
 
Trusts for a vulnerable beneficiary:
 
Non-resident trust:
 
Mixed trusts:
 
How Can GloverPriest Help?

At GloverPriest, we provide friendly and transparent advice on how to best organise your assets. We are able to set up a trust for you and draft the wording correctly so that it reflects your situation accurately. If you would like help with trusts, speak to one of our expert lawyers today. Complete our enquiry form. 


Contact Us

At GloverPriest, we understand navigating the law can be a difficult task to take on alone. That’s why we created this comprehensive guide to help promote information for everyone to use.

If you’re looking to speak to a solicitor, please call us from the number below. Alternatively, you can fill out our online form and we’ll be right with you.

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