What Is a Will Trust UK (2026)? Types, Uses & When You Need One
Updated 13 May 2026 · 9 min read · England & Wales
A will trust is a trust written into a will that comes into existence on the testator’s death. Rather than leaving assets outright to a beneficiary, the will directs assets into a trust managed by trustees for the benefit of named or defined beneficiaries. Will trusts are used for protecting assets for children, tax planning, preserving assets for a second family, and providing for vulnerable beneficiaries.
How a will trust works
When the will-maker dies, the executor administers the estate in the usual way — obtaining the Grant of Probate, collecting assets, paying debts. Assets directed into a trust under the will are then transferred (or “settled”) into the trust as part of the estate administration. From that point, the trustees take over: they hold the assets and manage them according to the trust’s terms, for the benefit of the beneficiaries.
The trust continues until it ends according to its terms — for example, when the youngest child reaches 18, or when the life tenant (surviving spouse) dies.
The main types of will trust
1. Bare trust
The simplest form. The beneficiary has an immediate, vested right to both the income and capital of the trust. The trustee merely holds the assets on the beneficiary’s behalf until they can receive them (usually at age 18 under the Trustee Act 1925). The beneficiary is taxed as if they own the assets directly.
When used: leaving assets to minor children or grandchildren in a simple will without complex conditions.
2. Life interest (immediate post-death interest) trust
The surviving spouse or partner (the “life tenant”) receives the income from the trust assets — or the right to occupy a property — for their lifetime. On the life tenant’s death, the capital passes to the “remaindermen” (usually children).
IHT treatment: the life interest is treated as part of the life tenant’s estate for IHT (immediate post-death interest). The assets are included in the life tenant’s estate on their death; the spouse exemption applies if the life tenant is the deceased’s spouse.
When used: second marriages; blended families; ensuring a surviving spouse can use assets during their lifetime while preserving capital for children from a first relationship.
3. Discretionary trust
Trustees have full discretion over: who in the beneficiary class receives payments, how much they receive, and when. There is no fixed entitlement for any beneficiary. The trustees exercise their judgment based on the beneficiaries’ needs and circumstances.
IHT treatment: assets in a discretionary trust are not in any beneficiary’s estate. However, the trust itself pays a 10-year anniversary charge (typically up to 6% of value above the NRB) and exit charges when assets leave the trust. The nil rate band discretionary trust is the most common application.
When used: where flexibility is needed; IHT planning; protecting assets from beneficiaries’ creditors or divorce; vulnerable beneficiaries.
4. Bereaved minor’s trust
A statutory trust for children under 18 who have lost a parent, created under IHTA 1984 s71A. The child must receive the capital absolutely by age 18. Advantageous IHT treatment: no 10-year anniversary charge and no exit charges while the trust qualifies.
When used: leaving assets to children under 18 in a parent’s will.
5. 18-to-25 trust
Similar to bereaved minors’ trusts but the capital can be held until age 25. Exit charges apply from age 18 to 25 (at a reduced rate), then the trust ends and the beneficiary receives the capital outright.
6. Nil rate band discretionary trust
A discretionary trust funded with assets up to the nil rate band on the first death. Assets fall outside the surviving spouse’s estate. See our full guide to nil rate band discretionary trusts.
Trust vs outright gift: which is right?
| Situation | Outright gift | Will trust |
|---|---|---|
| Beneficiary is over 18 and financially capable | Simple and effective | Unnecessary complexity |
| Beneficiary is under 18 | Not possible — trust required by law | Required (bare trust minimum) |
| Second marriage, children from first relationship | Risk: survivor may divert assets | Life interest trust protects both |
| Vulnerable adult (addiction, mental health) | Risk: lump sum may be misused | Discretionary trust: trustees control payments |
| IHT reduction for large estate | Limited unless outright to spouse | Discretionary trust can shelter NRB from survivor’s estate |
Frequently asked questions
What is a will trust?
A will trust (also called a testamentary trust) is a trust that is set up within a will and comes into existence only when the will-maker (testator) dies. Unlike a lifetime trust (set up during the donor's lifetime), a will trust is created by the will itself. The trust is then administered by trustees named in the will, who hold and manage the trust property for the benefit of the named beneficiaries according to the trust's terms. Common reasons for including a trust in a will: protecting assets for minor children, providing for a surviving spouse without giving outright ownership, managing assets for vulnerable beneficiaries, or reducing inheritance tax.
What are the main types of will trust?
The principal types used in England and Wales are: (1) Discretionary trust — trustees have full discretion over how much to pay and to whom, from a class of potential beneficiaries. Useful for flexibility and IHT planning. (2) Life interest (or interest in possession) trust — the surviving spouse or partner gets income or occupation rights for life; the capital passes to children on the survivor's death. (3) Bereaved minor's trust — for assets left to children under 18 who have lost a parent; advantageous IHT treatment. (4) 18-25 trust — property held for children until age 25; intermediate IHT treatment. (5) Bare trust — a simple trust where the beneficiary has an immediate vested interest; the trustee holds assets for them until an age specified. (6) Nil rate band discretionary trust — a specific version of (1) using the NRB amount.
Why would I use a will trust instead of leaving assets outright?
Several reasons: (1) Minor children cannot inherit property outright — the law requires assets to be held on trust until they are 18. A will trust specifies who controls the assets and how. (2) A surviving spouse with a large estate may benefit from a life interest trust, which keeps your share outside their estate for IHT while preserving their use of it. (3) A vulnerable adult beneficiary (mental health issues, addiction, financial irresponsibility) may be better protected by a discretionary trust than by receiving a lump sum outright. (4) In second marriages, a life interest trust ensures children from a first relationship ultimately inherit, even if the surviving spouse later remarries.
Does a will trust go through probate?
The will itself goes through probate — the executor obtains the Grant of Probate, then transfers the relevant assets into the trust as part of administering the estate. Once the trust is funded, it continues to exist independently of the probate process, governed by the trustees. Trusts do not have a separate probate process; they are set up as part of the estate administration.
Who pays tax on a will trust?
Tax treatment depends on the type of trust. A discretionary trust pays income tax at 45% on income retained in the trust, and CGT at 20% (28% for residential property); beneficiaries who receive income can reclaim tax credit where their own rate is lower. A life interest (immediate post-death interest) trust is transparent for IHT — the interest is in the life tenant's estate. Bereaved minors' trusts and 18-25 trusts have favourable IHT treatment. Bare trusts are treated as if the beneficiary owns the assets directly. Will trusts also face a 10-year anniversary charge and exit charges for discretionary trusts (generally 6% of value above the NRB, at 10-year intervals). Specialist tax advice is essential for complex trust structures.
Can I set up a will trust myself or do I need a solicitor?
Simple bare trusts for children (to hold assets until 18) can be included in a DIY will kit template with careful attention to the drafting. However, discretionary trusts, life interest trusts, nil rate band trusts, and bereaved minor trusts involve complex legal and tax drafting that requires a solicitor experienced in trust law and estate planning. Errors in trust drafting — unclear class of beneficiaries, missing trustee powers, incorrect tax elections — can have serious and expensive consequences. The cost of professional will drafting with a trust (typically £500–£1,500 for mirror wills with trust provisions) is modest compared to the cost of resolving a poorly-drafted trust after death.
Start with the right will for your situation
Simple estates — one beneficiary, no minor children, straightforward assets — often need no trust at all. WillSafe’s DIY will kit covers these clearly. Where trusts are needed, our kit gives you the foundation while a solicitor adds the trust provisions.
Get the will kit →Related guides
- Discretionary trusts in wills
- Life interest trusts — how they work
- Nil rate band discretionary trusts
- Trusts for bereaved minors
- Property protection trusts
- What is a trustee and what do they do?