Trusts – Are they a good idea?

July 18, 2025

Trusts – Are They a Good Idea?

If you’ve ever tried researching trusts online, you’ll know just how confusing — and often misleading — the information can be. It’s no wonder so many people feel unsure about whether a trust is right for them.

This article aims to clarify the facts, answer common concerns, and explain how The Planning Bee approach to trusts is different, safer, and more cost-effective than most.

Let’s Start With the Basics — What Is a Trust?

A trust is a legal structure that allows you to pass your assets (like your home or savings) to chosen people — your beneficiaries — while maintaining control through trustees (yourself and/or your family). There are different types of trusts, but the most common we deal with are:

Family Protection Trusts (Lifetime Trusts) – Set up while you’re alive, they allow you to retain control and use of your assets while protecting them for your family.
Discretionary Will Trusts – These activate on death and offer flexibility for how your assets are managed and distributed.

Each serves different purposes and comes with different costs. So when people compare prices, they’re often comparing apples with oranges.

Why Do People Set Up Trusts?

Here are just a few reasons our clients choose trusts:

To avoid probate delays and fees — Probate can take 12–18 months and cost up to 3% of your estate.
To protect inheritance from divorce, debt, or remarriage — Ensuring your assets stay in your bloodline.
To reduce the burden on children — Especially if they’re vulnerable, struggling financially, or geographically distant.
To maintain control — You decide how, when, and to whom your assets are passed on.
To minimise sideways disinheritance — Where assets end up with unintended people (e.g. new spouses).
To prevent inheritance tax issues for your children — Trusts can keep assets outside of their estate.
Care Fees – If created at the right time, assets in trust can be disregarded during a care fees means test.

Common Misconceptions (And The Truth)

We regularly hear objections based on bad advice or misunderstandings. Let’s clear a few up:

“Don’t we lose control if assets are in a trust?”

Absolutely not. You are still the trustee and beneficiary, so you retain full control while you’re alive. You can live in the property, sell it, or move house — the trust simply moves with you.

“Aren’t trusts only for the wealthy?”

Not at all. Trusts used to be the domain of aristocrats, but they are now a smart, accessible planning tool for everyday families. Many clients with modest estates benefit just as much from probate savings and family protection.

“Won’t I have to pay more tax or stamp duty?”

No. And there are no tax implications, unless your estate is very large or you’re using complex offshore structures (which we don’t). Our trusts are structured to preserve all inheritance tax allowances, including the residence nil-rate band.

“Aren’t there ongoing costs?”

Not with us. We don’t appoint professional trustees (unlike some firms who charge annual fees or leave families trapped if they go bust). Once set up, there are no ongoing charges. The only time you’d pay again is if you move house — standard legal fees would apply.

Your Most Asked Questions — Answered Clearly

1. Will this help with care fees?
Potentially, yes — but only if care wasn’t foreseeable at the time the trust was set up. If the reason for setting up the trust include probate avoidance, bloodline protection, or family control, and there’s no diagnosis pointing to imminent care needs, then assets in the trust should be disregarded in means testing.

2. What if a trustee or beneficiary dies?
The trust continues. Replacement trustees can be appointed. If a beneficiary dies, their share follows the trust terms — no risk of collapse.

3. What about remortgaging or equity release?
You can still do both. The trust doesn’t interfere — we’ve set up hundreds this way.

4. Should we pay rent?
No. As trustee and beneficiary, you’re essentially renting from yourself — there’s no obligation.

5. Will this affect insurance, council tax, or our address?
Not at all. You stay insured, pay council tax as usual, and your residency status remains unchanged.

6. Does the trust need registering with HMRC?
Yes, and we take care of that. Since 2022, most UK trusts must be registered, even if there’s no tax liability.

Beware of Bad Advice

We’ve seen too many clients misled by well-meaning friends, outdated articles, or even regulated professionals who aren’t trust specialists. Sadly, that advice has cost families dearly.

Take firms like McClures or Philips Trust Corporation. They locked clients into professional trustee arrangements, added fees, and then collapsed — leaving families stranded. We never appoint ourselves as trustees, so you retain control, and your trust is secure no matter what happens to us.

Our solicitors are TEP-qualified, the gold standard in trust and estate planning. Very few solicitors hold this qualification, and fewer still specialise in this area. Our solicitors are also regulated by the Solicitors Regulation Authority (SRA) — giving you peace of mind that everything is done properly.

So, Are Trusts a Good Idea?

Yes — if they’re the right trust, done for the right reasons, and created by the right people.

At The Planning Bee, we believe families should keep control of their assets, avoid unnecessary fees, and have access to trustworthy, expert guidance — not be locked into expensive, inflexible arrangements.

We’ve helped thousands of families take control of their legacy, reduce stress for their loved ones, and protect what matters most. If you’d like to find out more, or have specific questions about your situation, get in touch with us today — we’re here to help