Wills 4 Less, we believe protecting your loved ones should never be left to chance. A discretionary trust is one of the most powerful tools under UK law to ensure your family is cared for, whatever life may bring.
Imagine leaving money to a child or vulnerable loved one directly in your will. This could impact their entitlement to means-tested benefits or leave them at risk of financial exploitation.
A Discretionary family trust prevents this by keeping the assets under trustee control, protecting your beneficiaries while still supporting them financially.
Here in the UK, a discretionary trust is commonly used for:
Without a Discretionary family trust Southampton, your assets could:
A discretionary trust is ideal for anyone who wants to protect their assets and loved ones in the most flexible way possible. If you have young children, a Discretionary family trust ensures funds are managed wisely until they are mature enough to handle finances themselves.
If you care for a disabled or vulnerable loved one, a discretionary family trust can provide for them without affecting their means-tested benefits.
If you:
Then a discretionary trust is essential for your will. Without it, your assets could be wasted, misused, or even lost to care fees and tax unnecessarily.
Imagine leaving £200,000 directly to your child at 18. It sounds supportive, but is it wise? At that age, most young people aren’t ready to manage such a large sum. Without guidance, it could be spent quickly on things that don’t secure their future.
With a discretionary trust, trustees can release funds gradually for university fees, a first home, or other important needs – without giving them full control too early. This ensures your money truly supports their growth.
Think about a loved one with learning disabilities. A direct inheritance could end their entitlement to vital state benefits and make them vulnerable to financial abuse. A discretionary family trust protects them by keeping funds safe and managed for their care and wellbeing.
Or consider if your child divorces later in life. Money inherited outright could be lost in the divorce settlement. A discretionary family trust keeps your assets protected for them and future generations.
A discretionary family trust isn’t just a legal tool. It’s a way to care for your family with love, even when you’re no longer here.
Frequently Asked Questions
A discretionary trust allows you to place assets (such as money, property, or investments) into a trust, managed by trustees you appoint. Unlike a simple gift or fixed trust, the beneficiaries do not have an automatic right to the assets. Instead, your trustees decide how and when your beneficiaries receive funds, giving you maximum flexibility and control, even after you’re gone.
This means your trustees can:
✅ Respond to changing needs of beneficiaries
✅ Protect vulnerable family members
✅ Minimise risks of divorce claims or creditor attacks
✅ Manage inheritance tax exposure effectively
You should consider a discretionary trust if you want to protect assets for vulnerable loved ones, minor children, or beneficiaries who may struggle managing money. It’s ideal if you’re worried about care fees, remarriage, or inheritance tax.
By including it in your Will, you ensure trustees can support your family based on their changing needs. It offers peace of mind knowing your wishes will be honoured and your loved ones cared for in the right way.
It’s wise to review your discretionary trust every 2-3 years or when life changes, such as births, deaths, marriage, divorce, or financial shifts. Many people worry their trust may not reflect current family needs or tax laws.
Regular reviews ensure your wishes remain effective, your loved ones stay protected, and your trust works as intended. Speak to us today to review your trust and keep your estate plans up to date for complete peace of mind.
Including a discretionary trust in your Will typically costs between £250 and £800 in the UK, depending on complexity and legal advice needed. Many people worry about extra costs but feel relieved knowing it protects vulnerable loved ones and reduces inheritance tax risks.
It’s a small price for long-term peace of mind and family security. Speak to our team today for a clear, personalised quote to include a discretionary trust in your Will confidently.
Assets in a discretionary trust are managed by your appointed trustees. They:
Many people worry about misuse of funds, but trustees act responsibly to support your loved ones. This flexible management gives you peace of mind knowing your family’s future remains secure and protected.
Common mistakes include:
Avoiding these mistakes ensures your trust protects your loved ones effectively. Speak to us today for expert guidance and peace of mind.
Act Now Before It’s Too Late
No one knows what tomorrow brings. Creating a discretionary trust today could make the difference between your loved ones being secure or facing financial difficulties. The sooner you set up a discretionary family trust, the sooner you can relax, knowing you have done everything possible to protect your family’s future.
We Make It Simple
At Wills 4 Less, our friendly advisors will guide you through the discretionary trust process step by step. We ensure your trust is drafted correctly, your trustees are well-informed of their duties, and your beneficiaries are fully protected according to your wishes.
