Lifetime Trusts Lawyers
Specialist advice on establishing and managing trusts during your lifetime.
Staying involved while putting structure in place.
One of the most common concerns is whether creating a trust means you lose control entirely. A lifetime trust is created during your lifetime, rather than under your will.
For many families, it offers reassurance. It allows you to put a structure in place, begin passing value gradually and provide protection around important assets – all while you are still able to guide the process.
It is true that assets placed into a trust no longer belong to you personally, although certain structures allow you to appoint trustees and provide guidance on how decisions are made. However, retaining too much benefit or control can affect the tax treatment.
Lifetime trusts are not about giving everything away overnight. They are about specific planning that reflects both financial priorities and family circumstances.
Striking the right balance between flexibility and tax efficiency is central to effective lifetime trust planning.
Why consider a lifetime trust?
Lifetime trusts allow you to:
- Begin succession planning earlier.
- Protect assets for your children or grandchildren.
- Provide structure for young or inexperienced heirs.
- Introduce boundaries where needed – for example, in blended family situations.
- Create long-term protection around significant assets.
In many cases, the motivation is foresight and peace of mind rather than urgency. Acting during your lifetime can provide flexibility that is not usually available later.
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Understanding the tax consequences before you proceed.
Lifetime trusts can form part of inheritance tax planning, but they must be approached carefully.
Transferring assets into trust can create immediate tax consequences depending on value and structure. There may also be future periodic or exit charges.
Before transferring anything, it is important to understand:
- How the transfer will be treated for inheritance tax.
- Whether allowances or reliefs apply.
- The longer-term tax position.
- The impact on your own financial security.
What happens after a lifetime trust is created?
Creating the trust is only the beginning.
Trustees will have ongoing responsibilities, including tax reporting, record-keeping and prudent management of assets. For family members acting as trustees, this can feel unfamiliar.
Clear advice at the outset, and support when needed, helps ensure the trust operates as intended and reduces the risk of misunderstanding or dispute.
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Why specialist advice matters.
Lifetime trusts can have immediate legal and tax implications. Decisions made at the outset can shape how assets are protected, taxed and controlled for many years to come. Careful structuring is essential.
At Thomas Mansfield Solicitors, our private client team advises individuals and families across London and the South East on the strategic use of trusts within wider estate planning. We are Lexcel accredited and recognised for our technical expertise and client care. Our work often involves high value estates, business interests and complex family structures where precision and foresight are critical.
Professional advice ensures:
- The structure reflects your objectives clearly.
- Tax implications are understood before assets are transferred.
- Documentation is robust and legally sound.
- Trustees understand their duties.
- The trust works alongside your wider estate planning.
Meet our team
Discuss lifetime trust planning with us.
Establishing a lifetime trust is a significant decision.
Whether you are reviewing your estate plan or considering setting up a new trust, we provide clear strategic advice tailored to your specific circumstances.
Contact Thomas Mansfield Solicitors to arrange a confidential discussion about lifetime trusts.
Frequently asked questions
Can assets be taken back once placed into a lifetime trust?
In most cases, no. Once assets are transferred into trust, they no longer belong to you personally. Any variation must be carefully considered and may give you an unwanted tax surprise. A lifetime trust should be created with a clear long-term intention.
Do lifetime trusts create immediate tax charges?
They can - if above a certain threshold transfers may trigger inheritance tax charges at the time the trust is created. There may also be future periodic charges. Advice should always be taken so that you understand the full implications before transferring assets .
Do lifetime trusts have ongoing reporting requirements?
Yes. Most lifetime trusts must be registered with HMRC and can have obligatory reporting requirements for income tax, capital gains tax or inheritance tax. Trustees are responsible for ensuring compliance and proper record-keeping.
What is a lifetime trust?
A lifetime trust is a legal arrangement you create while you are alive. Assets that you transfer into the trust are managed by trustees for beneficiaries of your choosing. The main benefit of a lifetime trust is that it gives you control over how and when those assets will be used rather than leaving everything to pass outright on death.
Whats the difference between lifetime trust and discretionary trust?
A lifetime trust is often used to protect assets and is set up during your lifetime - at allows assets to be managed immediately under your instructions. A discretionary trust can be set up during your lifetime, or via your will upon death and gives trustees total freedom to decide if, when, and how beneficiaries receive income or capital. Lifetime trusts can include such discretionary powers too, but the key distinction is when they are made (lifetime vs. will). Fo an overview of how we help clients with trusts, please visit our main trusts page.
Will I lose all control if I set up a lifetime trust?
No, but you cannot treat the assets as your own once they are placed into trust. Certain structures allow you to appoint trustees or guide decision-making. Retaining too much control can affect the tax position. The structure must strike the right balance.
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Please note we cannot offer legal aid.