Trust Corporation UK: When and Why to Appoint One as Executor or Trustee
Updated 31 May 2026 · 8 min read · Estate Planning & Trusts
A trust corporation can act as a sole executor or trustee where an individual trustee cannot — it overcomes the two-trustee rule for land transactions and provides professional, continuous administration for complex or long-running will trusts. But the fees are significant, so the decision to appoint one should be made deliberately.
What Is a Trust Corporation?
A trust corporation is a body corporate authorised by statute to act as a sole trustee or executor. The definition is in Law of Property Act 1925 s.68(18) and Trustee Act 1925 s.68(1)(18). A company qualifies as a trust corporation if it meets one of the following criteria:
- The Public Trustee (a statutory office established by the Public Trustee Act 1906)
- A corporation appointed by the court in a particular case
- A corporation entitled as a custodian trustee under the Public Trustee Act 1906 rules
- A company incorporated in the UK (or an equivalent jurisdiction) with a paid-up share capital of at least £250,000 and authorised to undertake trust business — in practice, bank trust companies, solicitor trust companies, and specialist trust companies
Individual solicitors and accountants are not trust corporations, even if they are professional trustees. Only an incorporated company meeting the statutory criteria qualifies. This distinction matters because only a trust corporation can act as sole trustee of land and give valid overreaching receipts.
The Two-Trustee Rule and Why Trust Corporations Override It
The two-trustee rule (LPA 1925 s.27) requires that where trust land is sold, the capital money must be paid to at least two trustees for the mechanism of overreaching to operate — removing beneficial interests from the land and attaching them to the proceeds. A sole individual trustee cannot give an overreaching receipt; a trust corporation can.
This matters in three main situations:
- Selling a jointly owned property where one owner has died and the surviving owner is the sole trustee — a second trustee is needed to give an overreaching receipt, or a trust corporation must be appointed as co-trustee.
- Ongoing will trusts that hold land — a trust corporation as sole trustee can sell trust property cleanly without the constant need to recruit and appoint a second individual co-trustee.
- Sole executor estates — if the sole executor is also the sole trustee, they cannot overreach beneficial interests in land unless they are (or have the backing of) a trust corporation.
Types of Trust Corporation
The main options in practice are:
| Type | Suitable For |
|---|---|
| Bank trust companies (Barclays, HSBC, Coutts) | Larger estates, long-running trusts, investment management |
| Solicitor trust companies | Estates where the same firm handles both legal and trustee work |
| Specialist trust companies (Quilter, Evelyn Partners) | Complex family trusts, international assets |
| The Public Trustee | Last resort — no family member or professional available |
When to Appoint a Trust Corporation in a Will
Consider appointing a trust corporation where:
- The will creates a long-running discretionary trust, life interest trust, or vulnerable beneficiary trust that will hold land or investments for many years.
- The estate is large or complex — multiple properties, business interests, overseas assets, or significant investment portfolios.
- There are no suitable family members available, willing, or trustworthy enough to act as trustee for the duration.
- The beneficiaries have conflicting interests and the testator wants a neutral professional trustee to make discretionary decisions.
- Continuity is important — a trust corporation does not die, become incapacitated, or emigrate.
A common structure is a mixed appointment: a trust corporation as co-executor and co-trustee alongside a family member. The family member handles day-to-day contact with the family; the trust corporation provides professional expertise, continuity, and the corporate trustee power to give overreaching receipts if needed.
FAQs
What is a trust corporation?
A trust corporation is a body corporate that is authorised to act as a sole trustee or sole executor of an estate without requiring a second trustee. The definition in England and Wales is set out in the Law of Property Act 1925 s.68(18) and the Trustee Act 1925 s.68(1)(18). A body qualifies as a trust corporation if it is: (1) The Public Trustee (a government officer established by the Public Trustee Act 1906 to act as trustee or executor); (2) A corporation appointed by the court in a particular case; (3) A corporation entitled by rules made under the Public Trustee Act 1906 to act as a custodian trustee; or (4) A corporation that satisfies the Treasury regulations — in practice, this means a company incorporated in the UK or a comparable EU jurisdiction whose paid-up share capital is at least £250,000 and which is authorised to undertake trust business (typically a bank-owned trustee company, a solicitor trustee company, or a specialist trust company). Most lay executors and individual trustees do not qualify as trust corporations. The practical significance is that a trust corporation can give valid receipts for capital money as a sole trustee of land, overcoming the two-trustee requirement for overreaching.
Why does the two-trustee rule matter and how does a trust corporation overcome it?
The two-trustee rule under Law of Property Act 1925 s.27 requires that capital money arising from a sale or mortgage of trust land must be paid to at least two trustees (or a trust corporation) for the mechanism of overreaching to operate. Overreaching sweeps the beneficial interests off the land and onto the proceeds, giving the purchaser a clean title. If capital money is paid to a sole trustee, overreaching does not occur and the purchaser may take the land subject to existing beneficial interests. A trust corporation overcomes this requirement because it is recognised by the LPA 1925 and the Trustee Act 1925 as the equivalent of two individual trustees for this purpose. A trust corporation can act as the sole trustee of a will trust containing land, sell the land, receive the entire sale proceeds, and give a valid receipt that overreaches the beneficial interests — without needing a second individual trustee. This makes trust corporations particularly valuable for long-running will trusts that hold land, where requiring a second individual trustee at every sale would be impractical.
When should you appoint a trust corporation as executor or trustee in a will?
A trust corporation is worth appointing in a will where: (1) The estate includes land or property that may need to be sold and the testator wants to ensure overreaching can operate without requiring two individual trustees at all times. (2) The trust is expected to be long-running (for example, a discretionary trust for minor children or a life interest trust for a surviving spouse) and the testator wants professional management throughout. (3) The potential trustees (family members) are unable or unwilling to act, or the testator has no suitable family members. (4) The trust is complex — large funds, business interests, overseas assets, or contentious family arrangements — where professional management is clearly appropriate. (5) The testator wants the continuity that a corporate trustee provides (a trust corporation does not die, become incapacitated, or move abroad). Trust corporations are not appropriate for all wills: their fees can be significant (typically 0.5%–1.5% of trust assets per year, plus transactional fees), and for simple, short-term estates a lay executor is usually more cost-effective. The decision should weigh the complexity of the estate against the ongoing costs of professional trusteeship.
What are the main types of trust corporation used in England and Wales?
The main types of trust corporation encountered in practice are: (1) Bank trust companies — the large high-street banks operate subsidiary trust companies (e.g., Barclays Wealth Trustees, HSBC Trust Company) that act as executor and trustee for client estates. (2) Solicitor trust companies — many major law firms operate incorporated trustee companies that act for clients, allowing the firm's partners and associates to administer estates through a corporate entity. (3) The Public Trustee — a government-backed option of last resort; the Public Trustee can be appointed where no other suitable trustee is available and the court orders appointment. In practice, the Public Trustee rarely acts proactively for new clients and is mainly relevant where other trustees have died or renounced. (4) Specialist trust companies — standalone companies (such as Quilter Cheviot Trust Company, Coutts Trustee Services) that offer bespoke trust administration services. (5) The Official Solicitor — can act as trustee or litigation friend in narrow circumstances, but is not a general-purpose trust corporation.
Can a sole executor who is also a trust corporation receive capital money from a sale?
Yes — and this is one of the primary reasons trust corporations are useful in estate administration. Where a trust corporation is appointed as sole executor and trustee, it can: (1) Act as the single recipient of all sale proceeds from estate property (land, investments, business interests) without needing a second trustee to co-sign a receipt. (2) Give valid receipts that operate as overreaching, clearing beneficial interests off the land and giving the buyer a clean title. (3) Hold and invest the trust fund under the Trustee Act 2000 investment powers without a co-trustee. (4) Distribute income and capital to beneficiaries according to the will trust terms, with full accounting obligations but without co-trustee consent requirements. This structural simplicity — one entity with full power and accountability — is why professional advisers often recommend a trust corporation as executor or co-executor alongside a family member for complex estates, even if the family member takes the lead on day-to-day administration.
What are the costs of using a trust corporation as executor?
Trust corporation fees vary significantly and are not regulated by statute (unlike the old solicitor scale fees, which were abolished). Typical fee structures include: (1) Executor fees — charged as a percentage of the gross estate value at the date of death; typically 1%–3% of the total estate, with a minimum fee. (2) Trustee fees — an annual management fee of 0.5%–1.5% of the trust fund value, charged each year the trust is open. (3) Transaction fees — additional charges for specific actions (selling a property, making a distribution, preparing estate accounts, IHT work). On a £500,000 estate with a life interest trust lasting 10–15 years, trust corporation fees can run to tens of thousands of pounds. The Trustee Act 2000 s.29(2) provides a limited statutory right for trust corporations to charge fees out of the trust fund if all other trustees agree — but this is not the primary basis; the will should contain an express charging clause authorising the trust corporation to charge its standard fees. Beneficiaries who are dissatisfied with excessive fees can apply to the court under its supervisory jurisdiction over trust administration.
Choose the Right Executor for Your Estate
For most people, appointing a trusted family member or friend as executor is straightforward and cost-effective. Where your estate is larger or more complex, WillSafe’s DIY will kit can be paired with professional advice to ensure the right trustee structure — including a trust corporation where needed.
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