Trust wills

If you want a will that offers increased asset protection, a trust will could work for you. Provided by Co-op Legal Services, they involve a settlor, trustees, and beneficiaries, and can give posthumous control over asset distribution.

Before you take out a trust will, it’s good to explore its benefits and suitability for your needs. In this guide, we explore the world of trust wills, covering what they are, the different types and how much they cost.

What is a trust will?

A trust will is a unique kind of will. When you create one, you (the settlor) appoint trustees to handle how your assets are distributed after you die. These trustees must act in the best interests of the beneficiaries named in the will.

To ensure beneficiaries receive their inheritance, the trustees either follow specific instructions or use their judgment based on details in the will. In the latter case, the trustee would follow guidance provided in a letter of wishes.

Can trustees be beneficiaries of a trust will?

Trustees can also be beneficiaries of a trust will without any restrictions. This is quite common, especially when family members or close friends serve as trustees and are also named as beneficiaries.

What’s the difference between trustees and executors?

During the probate process, it can be hard to tell the difference between trustees and executors. However, they are two very different roles:

• Trustees: Required if a trust arises under the will. They ensure assets pass to named beneficiaries.
• Executors: Administer the will and handle additional duties like registering the death, arranging the funeral, and assessing the estate’s value.

It’s possible to name someone as both an executor and a trustee. You can read more about how to be an executor of a will in our guide.

Types of trust wills

There are several types of trust wills, which work in slightly different ways. The three most common are property, life interest and discretionary trust wills.

Property trust will

Property trust wills are for people who co-own a property. You put your half of the property into a trust and, when you die, the other owner can keep living there. They will only own their original half of the property – the trust owns the other half. This arrangement protects the surviving owner from financial assessments (such as care home fees).

Life interest trust will

A life interest trust will specifies that a person, often a partner (known as the ‘life tenant’), will receive any income generated by the settlor’s assets or be granted use of a property after the settlor’s death. However, the life tenant does not have legal ownership of any assets. Instead, they can enjoy their benefits during their lifetime. Upon the life tenant’s death, the asset passes to the ultimate beneficiary (often the settlor’s children), who then legally own it.

Discretionary trust will

With a discretionary trust will, you name trustees and provide them with a list of potential beneficiaries. You can name people who haven’t been born yet (such as possible future grandchildren). When you pass away, the trustees decide which of the potential beneficiaries you listed will become actual beneficiaries. These trust wills are useful if you’re uncertain about how to distribute your assets.

Saga Legal trust wills

At Saga Legal, we partner with Co-op Legal Services to offer a will-writing service. Their specialists will review your circumstances and advise if a trust will is right for you.

You can discuss your needs by phone, video call or during a home visit (subject to geographical restrictions). And you can also get a free legal review if you live in England or Wales. With a free legal review, you can find out how a trust will could protect your property and savings.

How much does a trust will cost?

If you choose to create a trust will through Saga Legal, prices start at £399, including VAT. If you want to make a mirror will with a trust, these are also available.

You can see all costs up front, so you won’t be caught out by any hidden fees.