Many people assume trusts are only for the wealthy, but that's a common misconception. In 2026, trusts are used by ordinary families across the UK to protect assets, reduce tax, and provide for vulnerable relatives.
A trust is a legal arrangement where one person (the 'settlor') transfers assets to another person or persons (the 'trustees') to hold and manage for the benefit of others (the 'beneficiaries').
Think of it like putting your assets in a special box. You decide the rules for who can benefit from what's in the box, and you appoint trusted people to look after it according to those rules.
Trusts can hold many types of assets: property, cash, investments, life insurance policies, and even business interests. The rules of the trust are set out in a legal document called a 'trust deed' (or in your Will, for testamentary trusts).
Common reasons to create a trust include: protecting property from care home fees, providing for a disabled family member without affecting their benefits, keeping assets safe from a beneficiary's divorce or bankruptcy, and controlling when young beneficiaries receive their inheritance.
In 2026, all UK trusts (with very limited exceptions) must be registered with HMRC's Trust Registration Service (TRS). Trustees must also file annual tax returns if the trust generates income or capital gains.
At Castle Family Legal, we make trusts simple and accessible. We'll explain your options, handle the paperwork, and make sure everything is properly registered. Contact us to find out how a trust could benefit your family.
