Trusts: An Old Idea with Modern Value

The English trust traces its roots back to medieval times, when knights heading off on crusade handed their land to someone they trusted to manage in their absence. This early arrangement created today’s key legal distinction: trustees hold legal title, while beneficiaries enjoy the benefit.

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By the 19th century trust law was formalised, with the Trustee Act 1925—now a century old—still a cornerstone of English law.

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Why Trusts Divide Opinion

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Some see trusts as complex or outdated; others value them as a strategic way to protect and pass on wealth. In a world of instant access to money and information, trusts can seem old-fashioned, but that misses the powerful benefits they offer.

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Ten Reasons to Consider a Trust

1. Beat the 2026 tax changes – From 6 April 2026, key inheritance tax reliefs will shrink, so assets added to a trust after this date may face a 20% upfront IHT charge if above £1 million. Farmers and business owners should act early.
2. Control without ownership – Set rules for how and when beneficiaries receive assets without giving them full control.
3. Asset protection – Shield wealth from creditors, divorce or financially irresponsible heirs.
4. Professional oversight – Appoint experienced trustees to manage assets with care and compliance.
5. Flexibility – Beneficiaries can use trust assets (such as living in a property) without owning them outright.
6. Certainty and structure – Avoid inheritance disputes and ensure your wishes are followed.
7. Support for vulnerable individuals – Protect assets for minors or those unable to manage money.
8. Long-term planning – UK trusts can last up to 125 years, securing wealth across generations.
9. Privacy – Unlike wills, trusts remain private.
10. Peace of mind – Ensure assets are managed responsibly and loved ones are cared for.

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The Takeaway

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Trusts aren’t for everyone, but with major tax changes on the horizon, they remain one of the most effective tools for succession planning. Now is the time to explore whether a trust could fit into your long-term plans.