What Is a Will Trust?
By Chris Watts, Private Client Consultant — Fern Wills & LPAs
Last verified: 11 October 2025 (England & Wales)
Quick-Read Summary
A Will Trust is a legal clause within your Will that controls how and when your estate is used after you die.
It gives chosen trustees temporary control of assets to protect beneficiaries, manage tax, and prevent loss through divorce, remarriage or care fees.
You remain fully in charge while alive; the trust only comes into effect after your death.
Practical Checklist
• Decide who you want to benefit now and who later.
• Choose two or more trustees you trust to act together.
• Agree what assets the trust should cover — property, savings or investments.
• Consider a Letter of Wishes to guide your trustees on how to apply their discretion.
• Review the main types of Will Trust before deciding (see below).
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 a share for children.
- Delay inheritance for younger beneficiaries until they are ready.
- Provide ongoing support for a vulnerable relative.
- Reduce exposure to inheritance tax and care costs.
Key Types of Will Trust
- Property Life Interest Trust (PLIT / PPT): protects a home share so a partner can live there for life while the share later passes to children.
- Life Interest Trust (LIT): covers both property and financial assets; the life tenant receives income but not capital.
- Flexible Life Interest Trust (FLIT): adds trustee discretion to release capital or convert to a discretionary trust.
- Discretionary Trust: trustees choose how and when to help beneficiaries, guided by your Letter of Wishes.
- Vulnerable Person Trust: provides care and tax support for those on means-tested benefits.
Image suggestion: “simple infographic showing three arrows — protection / control / inheritance”
How This Works in Real Life
Scenario: Protecting a Family Home and Future Savings
Sarah and James own their home jointly and have two children. If Sarah dies first and everything passes directly to James, the children’s inheritance could disappear if James later remarries or needs care.
By placing Sarah’s half of the house and her ISA into a Will Trust, James can continue living in the home for life and use income from the ISA if needed. When he dies, both the home share and the remaining ISA pass to the children automatically.
If trustees agree, they could release some funds for medical treatment or help with a child’s house deposit — keeping control but allowing compassion.
Image suggestion: “family home with keys on table symbolising inheritance planning”
FAQs
Is a Will Trust the same as a Trust set up in my lifetime?
No. A Will Trust (also called a Testamentary Trust) starts only after your death. Lifetime trusts begin immediately and require you to transfer assets while alive.
Who controls a Will Trust after I die?
Your appointed trustees. They must follow the terms of your Will and act in the best interests of the beneficiaries.
Does a Will Trust stop care fees?
It can offer some protection, as your share of property belongs to the trust rather than directly to your spouse. Local authorities must still assess each case individually.
Can I change my mind?
Yes. You can amend or remove a Will Trust any time before signing your Will. After death, it may still be varied within two years if everyone agrees (deed of variation).
Optional Technical Notes
- Governing law: Trustee Act 2000; Inheritance Tax Act 1984.
- Residence Nil Rate Band (RNRB) currently £175,000 per person may apply when passing a main residence to direct descendants.
- Flexible and Discretionary Trusts can be adapted post-death under s.142 IHTA 1984.
Next Steps
If you want to understand the options in more detail, explore:
• Property Life Interest Trust (PLIT)
• Life Interest vs Flexible Life Interest Trusts
• Flexible Life Interest Trust (FLIT)
Or contact Fern Wills & LPAs to discuss which Will Trust best matches your family and property needs.
