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Cromwell Associates

Provision that has to work across generations

Trusts and succession for family wealth

A trust separates the legal ownership of an asset from the benefit of it: trustees hold and manage, beneficiaries benefit, and the trust deed, will or other governing terms set the boundaries within which trustees decide. Where a family has property, business interests, investments and more than one generation with an interest in them, a trust can provide a framework for who benefits, when and on what terms, where a specialist considers one suitable.

It is not a device that automatically removes assets from an estate, eliminates tax, defeats claims or guarantees protection. Treatment depends on the type of trust, the assets, the timing and the circumstances of everyone involved, and Inheritance Tax, Income Tax and Capital Gains Tax may all be in play.

Cromwell Associates coordinates the enquiry: we listen to the intention, record it accurately, and introduce you to a specialist who assesses suitability, advises and drafts under their own engagement.

Intention before instrument

What should happen, for whom, and when. The structure is the answer to that question, not the starting point for it.

Honest about limits

We are careful not to describe trusts as doing things they may not do. Optimistic shorthand helps nobody.

Read alongside everything else

A trust that contradicts the will, the property title or the shareholders' agreement is a problem, not a plan.

In this area

Trusts & Legacy enquiries we coordinate

Family and discretionary trustsFlexible arrangements where trustees decide how benefit is applied, within the limits the deed sets.Read moreTrust planning for children and vulnerable beneficiariesHolding assets for someone who should not, or cannot, receive them outright.Read moreMultigenerational legacy planningConsidering three generations rather than one transfer.Read moreBusiness succession trust enquiriesHolding or directing business interests as part of a succession plan.Read moreTrustee considerationsWhat appointment actually involves for the people you choose.Read moreTrust reviewsChecking that an existing arrangement still does what it was meant to.Read moreLife insurance trustsDirecting policy proceeds to intended beneficiaries through trustees.Read moreAsset-protection planning introductionsCareful conversations about what structures can and cannot achieve.Read more

Where we work

Areas we coordinate enquiries from

In plain English

Trusts in a family with something to pass on

Enquiries about trusts often start with a person rather than a structure: a child who is not ready, a second marriage where two sets of children have expectations, a business that should stay with the one member of the family who runs it, or a parent who wants a house to remain available to a partner and still reach the children in the end. Where a specialist considers one suitable, a trust can provide a framework for who benefits, when and on what terms.

The mechanics are simple to state. Trustees legally own the assets and manage them for the beneficiaries, on the terms of the trust deed, will or other governing terms. What varies enormously is the type of trust, and with it who is entitled to what and when. A bare trust gives the beneficiary an entitlement — in England and Wales, at eighteen. A discretionary trust gives no fixed entitlement at all: the trustees decide, within the powers the governing terms give them. Others sit between the two. Choosing the type first, and working out the intention afterwards, is how families end up with an arrangement that does not do what they wanted.

Timing matters as much as structure. A lifetime trust takes effect now and generally means giving up control of what goes into it. A will trust is created by your will and only operates after death, so it keeps flexibility while you are alive but does nothing during those years; anything needed for the meantime — an attorney appointment, cover, or an outright arrangement — has to be dealt with separately. Which is appropriate depends on what you are trying to achieve, what you can afford to let go of, and how likely your circumstances are to change.

This describes the law of England and Wales. Scotland and Northern Ireland have different rules.

Step by step

What the process involves

  1. Step 1

    Say what should happen, for whom, and when

    Before any structure is named. Who must be provided for, who should ultimately inherit, at what point access is sensible, and what you would want considered if someone's circumstances change badly.

  2. Step 2

    Look at how things are actually owned

    Ownership decides more than most people expect. A home held as beneficial joint tenants passes to the survivor by survivorship regardless of the will, while tenants in common each have a share that can be left by will or into a trust. Pension death benefits depend on the scheme rules. An expression of wishes may guide the provider or trustees but does not necessarily determine payment.

  3. Step 3

    Choose trustees, and tell them what it involves

    Trustees own and manage the assets, must keep to the deed and to their duties, and can be personally liable for getting it wrong. Two or more is usual, a family member alongside a professional is common, and a professional will charge. Decide now who can appoint and remove trustees over the next few decades.

  4. Step 4

    Weigh the tax and the running costs honestly

    Trusts have their own Inheritance Tax, Income Tax and Capital Gains Tax rules, and Inheritance Tax can arise when assets go in, at ten-yearly intervals and when assets leave. Add professional fees, accounts and returns. The right comparison is between those costs and the reason for using a trust at all.

  5. Step 5

    Register it, run it, and review it

    Most express trusts must be registered with HMRC's Trust Registration Service and the record kept current; registration can apply even where no tax is due, and some trusts are excluded. After that a trust is an arrangement to be administered, not a document to file away.

  6. Step 6

    Check the rest of the paperwork agrees

    The will, the property title, any shareholders' agreement, pension nominations and any policy trust should all point the same way. A trust that contradicts one of them creates a practical risk of confusion, delay or dispute later.

Being straight with you

What this cannot do

  • No trust can be presented as a guaranteed way to reduce Inheritance Tax. Treatment depends on the type of trust, the assets, the timing and your circumstances.
  • No trust can be presented as a guaranteed way to avoid care-home fees. A local authority can treat a disposal made to reduce a contribution as a deliberate deprivation of assets.
  • A letter of wishes guides trustees. It does not bind them, does not override the deed and cannot guarantee any family outcome.
  • Putting assets into a trust generally means giving up control. If you keep a benefit, the tax position usually changes.
  • Trust discretion is not secrecy: trustees keep records precisely so their decisions can be explained.
  • Cromwell Associates does not draft, advise on or administer trusts, does not act as trustee and gives no tax advice. We coordinate the enquiry and introduce you to a specialist who advises under their own engagement.

Before you speak to anyone

Useful things to have ready

Gather or think about

  • What you want to happen, in your own words, before any structure is discussed
  • How the home and any other property is owned, and with whom
  • The beneficiaries, their ages, and anything relevant such as means-tested support or a business role
  • Which assets you would genuinely be prepared to give up control of
  • Who could realistically act as trustee, and who could replace them
  • Details of any existing trust, and of the current will and pension nominations

Questions worth asking the specialist

  • Which type of trust are you proposing, and in plain English why that one rather than the alternatives?
  • What exactly am I giving up, and can I still benefit from these assets?
  • What are the tax consequences on creation, during the trust's life, and when assets leave it?
  • Does it need registering, who does that each year, and what does that cost?
  • What are the set-up costs and the realistic annual running costs?
  • Who explains the role to my trustees, and what happens if one of them cannot act?
  • What would make this arrangement the wrong choice for us?

Ask us to explain any charges that would apply, and any remuneration we may receive for making an introduction, before you decide whether to proceed.

Sources

Official guidance referenced on this page

Further reading on this site

What happens next

Four steps, no obligation at any of them

  1. 01

    You tell us what matters

    A short guided enquiry, or a message in your own words. Only what is needed to route the enquiry, and nothing is committed.

  2. 02

    One named contact reads it

    Personally, not through a call centre. If anything is unclear we come back to you using the contact preference you chose.

  3. 03

    We introduce you to the right specialist

    Only with your agreement. Where regulated advice is required, the introduction is to an appropriately authorised specialist.

  4. 04

    They take it from there

    The specialist is responsible for advice, documents, quotations and terms. We stay available to coordinate connected needs.

Cromwell Associates coordinates enquiries and makes introductions. It does not provide regulated financial, legal or tax advice.

Arrange a confidential consultation

Tell us what you would like to protect or resolve. One named contact will read your enquiry personally and come back to you.

  • One dedicated point of contact
  • No call centres
  • Introductions handled discreetly
  • Serving Hampshire, West Sussex, Surrey and the Isle of Wight

Cromwell Associates coordinates enquiries and introduces clients to appropriately qualified specialists. We do not provide regulated financial, legal or tax advice, and submitting this form places you under no obligation.

Your enquiry is reviewed personally before any introduction is made.

Please do not send medical details, account numbers or other sensitive information. Cromwell Associates is an enquiry and introduction service: it does not give advice, recommend policies or arrange cover. Insurance introductions are passed on by hand to a suitable specialist, and other services to an appropriate partner. Cromwell Associates may receive a referral payment if you go on to use a service.

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