What is a Will Trust? Types, examples and when they help

10 min read

Last verified: January 2026 (England & Wales)

Trusts mini-series (3 parts)

Part 1 (Trusts 101): Help Me Understand Trusts
Part 2 (Glossary): What Is a Will Trust? (you are here)
Part 3 (Decision guide): Choosing Your Family Trust

If you are new to trusts, start with Part 1. If you want help choosing the right structure for your family, go to Part 3.

Quick-read summary

A Will trust (also called a “testamentary trust”) is a clause inside your Will that controls how and when part of your estate is used after you die.

It works by placing specific assets (or a share of them) into a trust, then giving your chosen trustees clear instructions to follow for the benefit of your beneficiaries.

You remain fully in charge while you are alive. The trust only comes into effect after your death.

A Will trust is not “a Will and a trust as two separate things”. It is often the same Will, with extra rules that switch on after death.

If you are here because you have heard a specific trust name

A plain-English analogy

Think of a straightforward Will like third-party insurance. It mainly answers: “Who gets what when I die?”

A Will trust is more like fully comprehensive insurance. It can still say who benefits, but it can also say when, why, and under what conditions, with extra protection and flexibility if life does not go to plan.

A trust is not “better” by default. It is simply a tool that can be very useful when you want more control than an outright gift provides.

Practical checklist

Decide who you want to benefit now, and who should benefit later (and in what order).
Choose two or more trustees you trust to act together.
Decide which assets the trust should cover (often a share of a property, but it can also cover savings or investments).
Consider a Letter of Wishes to guide trustees where you are giving trustees discretion.
Check how your home is owned, because this often decides whether a property-based Will trust can work in practice.
Review the main trust types below and choose the structure that matches your family and risk profile.

What to consider

A Will trust can be as simple or as detailed as you need.

Most clients use one to:

protect a partner’s home while ring-fencing an inheritance for children
delay inheritance for younger beneficiaries until they are ready
provide longer-term support for a vulnerable relative
add some protection against sideways disinheritance and future insolvency

Sideways disinheritance explained: this is where your inheritance plan is unintentionally diverted sideways to a new spouse or new family after the first death. For example, you leave everything to your partner, they later remarry, and on their death the assets pass to their new spouse or their new spouse’s children instead of your children.

Care fees and means-testing are a common worry. Planning whose main aim is to avoid paying care fees is risky and can be challenged as deliberate deprivation. Many clients are comfortable paying a fair contribution, but want to avoid outcomes they feel are excessive or unreasonable. Most Will trusts are chosen primarily to protect the survivor and keep the inheritance on track; any care-fees impact should be a secondary consideration and is never guaranteed.

How a Will trust works

You make a Will that includes a trust clause (or more than one, depending on your situation).
When you die, your executors collect your estate and transfer the relevant assets into the trust instead of passing them outright.
Your trustees then manage the trust assets for the beneficiaries, following the wording of your Will and any supporting Letter of Wishes.
The trust ends when the trust terms say it should end (for example, on the death of a life tenant, when a child reaches a certain age, or when trustees have appointed the assets out).

The key idea is simple. You decide the rules while you are alive. Your trustees simply follow them when the time comes.

If you want help choosing between PLIT, LIT and FLIT (and understanding the trade-offs), Part 3 is the decision guide: Choosing Your Family Trust

Key types of Will trust

High-level overview only. For choosing the right structure for your family, see Part 3.

Names vary. Different firms use different labels for similar structures. In technical and HMRC terminology, what many people call a life interest trust is often described as an interest in possession trust, and a right to occupy or right of residence arrangement can also create an interest in possession in the property. The titles below are simply a helpful way to understand the options. The exact powers and safeguards come from the wording drafted into the Will.

You may also see a Property Life Interest Trust described as a Property Protection Trust in everyday conversation. The mechanics are set by the Will wording, not the label.

3 arrows: Protection, Control & Inheritance

Below is a practical overview. If you want more detail, each section includes a clean link to a deeper article.

1) Right to Occupy (RTO)

A Right to Occupy trust is usually the simplest property-based Will trust. It gives someone the right to live in a specific property (or your share of it) for a set period or for life (or as the trust dictates / as chosen when drafting), while keeping the property ring-fenced for your chosen ultimate beneficiaries later.

This can be a good fit where you want to keep things straightforward and protection-led.

2) Property Life Interest Trust (PLIT)

A PLIT is one of the most common trusts used by couples, particularly where there are children from previous relationships, or where you want clarity and fairness across two deaths.

On first death, the survivor can usually keep living in the home (or as the trust dictates / as chosen when drafting). The protected share is ring-fenced so that when the survivor later dies (or leaves the property, depending on how the trust is drafted), that share passes to the ultimate beneficiaries you named, often children.

A PLIT is a practical way to separate who can live there now from who inherits later, while still prioritising the survivor’s security.

3) Life Interest Trust (LIT)

A Life Interest Trust is the broader family trust concept that can apply to financial assets as well as property. It typically gives one person (the life tenant) the right to benefit during their lifetime, often through income or use of an asset, while preserving the underlying capital for the ultimate beneficiaries later.

This can be useful where you want the survivor to benefit, but you also want the end destination of the capital protected and clearly documented.

4) Flexible Life Interest Trust (FLIT)

A FLIT is chosen when families want the structure of a life interest trust but also want trustees to have flexibility if circumstances change.It can allow trustees to respond to real-life events, for example where a survivor later needs to downsize, move, or receive support from capital. The flexibility is about keeping sensible options open without turning everything into a blank cheque.

5) Discretionary Trust

A Discretionary Trust gives trustees discretion over who benefits, when, and how, within a class of beneficiaries you define. Trustees are guided by your Letter of Wishes.

This structure is often helpful where you want to protect beneficiaries from risk (divorce, debt, addiction, vulnerability, unstable relationships), or where you want to avoid too much, too soon for younger beneficiaries.

6) Nil Rate Band Discretionary Trusts (NRBDTs)

An NRBDT is a specific form of discretionary Will trust designed to receive assets up to the Nil Rate Band. It is more technical than most families need, but it can still be relevant in certain estates and family situations.

This is an area where joined-up advice can matter, because the practical pros and cons depend heavily on the shape of the estate, allowances, and intentions across two deaths.

7) Vulnerable Person Trusts (VPTs)

A VPT (sometimes called a Disabled Person’s Trust) is designed for a beneficiary who is vulnerable or disabled and may be on means-tested support. Where the legal conditions are met, it can allow trustees to provide long-term support while helping preserve eligibility for certain benefits.

This type of trust is often the difference between a gift that helps and a gift that unintentionally disrupts support.

8) Trusts for children and young persons

Even if your Will is otherwise straightforward, it may still need trust provisions for children and young people, especially where a beneficiary is under 18, or where you want a staged approach rather than a full payout at 18.There are specific trust types in law (including Bereaved Minors’ Trusts and 18 to 25 trusts) that can be appropriate depending on the family circumstances.

9) Lifetime “Home Protection” trusts (not Will trusts) – proceed with caution

People sometimes confuse Will trusts with lifetime trusts sold as Home Protection Trusts, Home Protection Plans, Living Trusts, Lifetime Trusts or similar.These are not Will trusts. They involve transferring your home (or a share of it) during your lifetime

Fern Wills & LPAs does not create or sell lifetime home protection trusts as a product. If you are considering one, proceed with extreme caution and make sure you understand the legal, tax, and practical risks.

Ownership matters (especially for property-based Will trusts)

Many couples own their home as beneficial joint tenants. That usually means the property passes automatically to the survivor on first death, outside the Will.

If you want your share to follow a Will trust (for example, a PLIT), you usually need to hold the property as tenants in common (50–50) instead. That way, your share can pass under your Will into the trust you have chosen.

How this works in real life

Scenario: Protecting a family home and keeping flexibility

Sarah and James own their home and have two children. If Sarah dies first and everything passes directly to James, the children’s inheritance could be lost later, for example through remarriage, financial difficulty, or poor timing.

By placing Sarah’s share of the home (and, where relevant, other assets) into a Will trust, James can continue living in the home for life (or as the trust dictates / as chosen when drafting). Sarah’s protected share is ring-fenced for the children as ultimate beneficiaries later.

If trustees agree, a flexible structure can also allow sensible support, while still protecting the long-term outcome.

Case 1: Blended family, both have children

David and Helen each have children from earlier relationships. They want the survivor to be safe in the home, but they also want each person’s share to pass to their own children in the end. If everything is left outright to the survivor, the children’s inheritance can be diverted sideways later, for example through remarriage or a change of Will. A PLIT-style trust can protect the survivor’s right to live in the home, while ring-fencing the first-to-die’s share for their children as ultimate beneficiaries.

Case 2: Adult child with vulnerabilities

Jo wants to help her adult son, but she knows he may struggle with money management and is vulnerable to pressure from others. If she leaves a large gift outright, it could be lost quickly or it could disrupt means-tested support. A Vulnerable Person Trust or a discretionary trust structure can allow trustees to support him safely over time, paying for things that improve his quality of life while protecting the longer-term outcome.

Case 3: Young beneficiaries

A couple have two children aged 8 and 13. They want the children to be looked after properly if the worst happens, but they do not want a sudden full payout at 18. A children’s trust clause in the Will allows trustees to use funds for upbringing and education and then release capital later, either in stages or at an age you choose, with a Letter of Wishes guiding practical decisions.

Case 4: The survivor needs to downsize later

A couple want to protect the children’s inheritance, but they also want the survivor to have flexibility. Ten years after the first death, the survivor wants to sell the family home and downsize. A life interest trust can be drafted with clear powers for sale and purchase of a replacement property, and a FLIT-style structure can give trustees flexibility to support the survivor if circumstances change, while still keeping the inheritance on track for the ultimate beneficiaries.

Case 5: Someone has been sold a “home protection plan”

A family are told they must transfer their home into a lifetime trust immediately to protect it. When they look into it properly, they realise it is not a Will trust, it changes ownership during lifetime, and it can create tax and practical problems. They decide instead to keep the home in their own names and use Will-based planning, choosing a trust that matches their real goal rather than a one-size-fits-all product.

FAQs

Is a Will trust the same as a trust set up in my lifetime?

No. A Will trust starts only after your death. Lifetime trusts begin immediately and require you to transfer assets while you are alive.

Who controls a Will trust after I die?

Your trustees. They must follow the wording of your Will, act in the best interests of the beneficiaries, and keep proper records.

Does a Will trust stop care fees?

A Will trust can sometimes have an impact in certain structures, but it is not a guaranteed care-fees solution. Planning mainly to avoid care fees is risky and can be treated as deliberate deprivation. Many clients use Will trusts mainly for survivor protection and to keep inheritance on track; any care-fees impact should be treated as a possible side-effect and is never guaranteed.

Can I change my mind?

Yes. You can amend or remove a Will trust any time before signing your Will.

A note on how we work (governance and joined-up advice)

For ethical and governance reasons, Fern Wills & LPAs does not take trustee appointments or create standalone lifetime trusts. However, Fern Wills & LPAs does create trusts that arise on death within Wills.

For ethical and governance reasons, we also do not register trusts. Many Will trusts, once active, may need to be registered on the Trust Registration Service (TRS) within 90 days. At the time, your executors or trustees are welcome to contact us for practical guidance and introductions to an appropriate specialist who can act and administer the trust. You remain free to choose your own adviser.

If you already have a financial adviser, with your permission I am happy to speak with them so your Will, trust planning, and wider plan are aligned. If you do not, I can introduce you to an adviser I trust, with no obligation.

Optional technical notes

Trustees’ duties and investment powers are shaped by the trust wording and trustee law (including Trustee Act 2000).
Inheritance-tax allowances and qualifying conditions change over time. Subject to the current tax regime. Asset values can rise and allowances can fall. If anything changes or you’re unsure, please ask me to review your Will.
The wording of the Will trust decides outcomes in practice, especially around occupation rights, sale and downsizing powers, and the balance between different beneficiaries.

Next in the mini-series

Part 1 (Trusts 101): Help Me Understand Trusts
Part 2 (Glossary): What Is a Will Trust? (you are here)
Part 3 (Decision guide): Choosing Your Family Trust

If you are new to trusts, start with Part 1. If you want help choosing the right structure for your family, go to Part 3.

Next steps

If you want to understand which Will trust structure best fits your family, the quickest way forward is a short conversation to clarify what you are trying to achieve overall, then we match the trust type to the goal.

If you would like to read more first, the links above are designed to take you one level deeper in a clear, practical way, so our conversation can focus on what matters most to you.

Will trusts; Testamentary trusts; Trustees; Inheritance planning; Life interest trusts; Discretionary trusts; Blended families; Protecting children’s inheritance

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