Trusts Explained: How to Protect What You’ve Worked For (and Pass It On Wisely)

When most people hear the word “trust,” they either picture a millionaire setting one up for their heirs or feel immediately overwhelmed by legal jargon. But here’s the truth: trusts aren’t just for the wealthy, and they’re not as complicated as you might think.

In fact, setting up a trust could be one of the smartest and most loving things you do for your family.

At LCS Legal, we work with everyday families across the UK to help them understand how trusts work, why they matter, and how to use them to protect what they’ve worked hard for.

Here’s what you need to know.

What Is a Trust (In Plain English)?

A trust is a legal arrangement where you (the "settlor") put assets (like money, property, or investments) into a "trust fund." A person or group (the "trustee") looks after those assets for someone else (the "beneficiary").

Think of it as putting your assets in a safety box and giving someone you trust the key—with clear instructions on how and when to use what’s inside.

Why Would I Set Up a Trust?

• To protect your children or grandchildren

• To avoid giving someone a lump sum they might not be ready for

• To reduce inheritance tax liability

• To make sure your assets go to the right people, at the right time

• To provide for vulnerable or disabled loved ones without affecting their benefits
  

Trusts are not about control—they’re about clarity, security, and intention.

Types of Trusts and What They Do

There are several kinds of trusts, but here are the ones we talk about most at LCS Legal:

1. Discretionary Trust

This gives the trustee flexibility over when and how much each beneficiary receives. Great for:

• Young beneficiaries

• Changing family circumstances

• Long-term flexibility
  

2. Bare Trust

Simple and straightforward. Assets go to the named beneficiary when they reach a certain age. Often used for:

• Gifts to children

• Passing on savings
  

3. Interest in Possession Trust

This allows someone to benefit from the trust income (e.g., rent from a property) while preserving the capital for someone else later. Common in blended families or for second marriages.

4. Protective Property Trust

Ideal for safeguarding a share of your home from being sold to pay for care fees. Helps ensure your children inherit their share, even if your partner remarries.

5. Trusts for Vulnerable Beneficiaries

Tailored to help protect people with disabilities or those unable to manage finances. These can also offer valuable tax relief.

Common Myths (Let’s Clear Them Up)

“Trusts are only for the rich.” Not true. Many families use trusts to protect modest estates.

“It sounds too complicated.” That’s why we’re here. We break it down and guide you every step of the way.

“I already have a will. Isn’t that enough?” A will is essential, but a trust can give extra protection and flexibility, especially for life changes and long-term care planning.

Why Families Choose LCS Legal to Set Up Their Trusts

We don’t use legal jargon or pressure tactics. We listen, explain, and customize solutions to your real-life needs. We’ll:

• Help you decide what kind of trust is right for your goals

• Walk you through setting it up from start to finish

• Work alongside your will and power of attorney plans

• Ensure your family is protected now and in the future
  

Estate planning isn’t just paperwork. It’s peace of mind.

Is a Trust Right for You? Let’s Talk.

Trusts aren’t about complexity; they’re about protecting the people you love. If you want to make sure your assets are passed on thoughtfully and securely, we’re here to help.

Mother hugging her children

Book a free, friendly consultation with LCS Legal today and let’s talk about what matters to you.

Confused about trusts and how they work? Learn how to protect your assets, reduce taxes, and secure your family's future with this simple, jargon-free guide to estate planning and trust creation.