With economic uncertainty unfolding, shifting tax rules and evolving family dynamics, it's no surprise that more people are beginning to ask not just whether they should write a will, but whether a trust might be the missing piece in their estate planning.
At their heart, trusts are about control. They allow you to pass on wealth with purpose; they offer a level of structure, protection and flexibility that a simple will or informal arrangement can very rarely match.
Better still, the numbers back it up. Rigorously.
Government statistics show that 115,000 new trusts were registered with HMRC last year. Remarkably, 86% of these were non-taxable trusts, indicating that families are increasingly using trusts not merely to mitigate tax exposure, but to protect beneficiaries, ringfence property and ensure legacies are handled in line with their express wishes.
This is a clear signal that trusts are no longer the preserve of the ultra-wealthy. They're becoming a mainstream tool in modern estate planning - especially for business owners, blended families and those with complex financial or care considerations. So, should you implement them into your own estate planning? Let’s explore the truth behind trusts.
This surge in trust adoption is not just being driven by demographic changes, although the over-65 population is certainly increasing steadily, but also by a wider realisation that good planning now prevents difficult conversations (and expensive outcomes) later.
Too often, people think of trusts as tax vehicles. In reality, they are more often about family governance. They help people to:
The fact that such a high proportion of new trusts carry no immediate tax liability demonstrates that families are recognising trusts as protective structures first, tax planning tools second. This shift in thinking reflects a more sophisticated approach to wealth transfer – one that prioritises long-term family security over short-term tax savings.
There's a perception that trusts are overly complex, or that they create work for the sake of control, but the reality is often the reverse. A well-structured trust reduces complexity later, during bereavement, litigation or incapacity, when the emotional and administrative burden on families is typically at its peak.
In a world where families are more varied, assets are more exposed and tax law is ever shifting, trusts offer a degree of certainty that few other structures can match. The key is in tailoring them to your needs, aligning them with your will and keeping them under review as your life – and all relevant legislation – changes.
The 115,000 families who established trusts in the past year understood something fundamental: that effective estate planning is about more than minimising tax. It's about creating structures that work for your family's unique circumstances, both now and in the future.
At Duncan & Toplis, our team of trust and estate specialists are here to help you ask the right questions, weigh your options and create a structure that delivers long-term value for you and your family. To find out more, contact us today.
