Trusts Advice
Trusts can be powerful planning tools — but they need to be structured correctly to deliver their intended benefits.
Your Situation
If you have been told that a trust might be useful for your estate or tax planning…
Trusts are legal arrangements that separate the ownership of assets from the benefit of them — allowing wealth to be passed to future generations in a controlled, structured way. They are used for a range of purposes: reducing inheritance tax, protecting assets from future claims, providing for vulnerable beneficiaries, and managing the timing and conditions of inheritance. But trusts are also frequently oversold, and many people establish them without fully understanding the ongoing tax, legal, and administrative implications.
Castle Stonebridge works alongside solicitors and tax advisers to help clients across the UK understand whether a trust is appropriate for their specific situation. We focus on the financial planning dimension — how a trust fits into your overall wealth strategy, what the IHT implications are, and whether the complexity is justified by the benefit it delivers.
Questions We Answer
"Would a discretionary trust genuinely reduce my family's inheritance tax liability?"
Trusts do not automatically reduce IHT — the tax treatment depends on the type of trust and how it is funded.
"What is the difference between a bare trust and a discretionary trust?"
The two main types of trust have very different tax, control, and flexibility characteristics.
"Can I use a trust to control how and when my children receive an inheritance?"
Trusts allow you to specify conditions, ages, or trustee discretion over when and how beneficiaries receive assets.
"What are the ongoing tax obligations of a trust?"
Trusts have their own income tax, capital gains tax, and ten-year periodic charge obligations — understanding these is essential before establishing one.
"Should I write my life insurance policy in trust?"
Life insurance written in trust avoids a delay in payment, falls outside the estate for IHT, and can direct payment to specific beneficiaries.
Our Approach
How We Guide You
Objectives and needs assessment
We identify what you are trying to achieve — IHT reduction, asset protection, controlled inheritance — before considering whether a trust is the right solution.
Trust type selection
We help you understand the different types of trust and their tax, legal, and practical implications, recommending the most appropriate structure for your goals.
Coordination with legal advice
We work alongside your solicitor or refer you to a specialist trusts solicitor to establish the trust deed correctly and ensure the legal and financial structures align.
Ongoing trust financial management
We provide ongoing advice on the trust's investments, distributions, and tax position — including ten-year periodic charges where applicable.
Key Considerations
What you should know before making a decision
- Discretionary trusts are subject to inheritance tax charges at establishment (if funded above the nil rate band), on the ten-year anniversary, and when assets leave the trust. These "relevant property" charges must be factored into the planning.
- Trust income is taxed at up to 45% (the trust rate) for discretionary trusts. Trustees must file annual trust tax returns and meet HMRC reporting obligations, including registration on the Trust Registration Service.
- Assets placed in a trust are generally no longer available to the settlor — putting assets into an irrevocable trust is a significant, long-term decision that must be approached carefully.
- Life insurance policies written in trust fall outside the estate for IHT purposes and do not require probate before payment — making trust-written policies a simple and highly effective planning tool for most people.
Talk to an independent adviser — no obligation
Castle Stonebridge is FCA-regulated and wholly independent. We are not tied to any provider, which means our advice is guided solely by what is right for you.
Book a Free ConsultationYour initial consultation is completely free and carries no obligation.
Common Questions
Frequently Asked Questions
Ready to get the right advice for your situation?
Your free initial consultation is completely without obligation. We will listen, understand your specific circumstances, and tell you honestly whether and how we can help — before we discuss fees.
advice@castlestonebridge.co.ukCastle Stonebridge Limited is an Appointed Representative of Rosemount Financial Solutions (IFA) Limited, which is authorised and regulated by the Financial Conduct Authority. Rosemount Financial Solutions (IFA) Limited is entered on the Financial Services Register under reference 535515. Tax treatment depends on individual circumstances and may change.
Regulatory Notice: Estate and inheritance planning is not regulated by the Financial Conduct Authority.