Legal News | 10.04.25

Discretionary Trust Wills – What Are The Advantages?

According to research approximately 56% of adults over the age of 18 do not currently have a Will.  It may be that the thought of preparing a Will can seem daunting and their assets too complicated.

One possible Will structure to consider is a discretionary trust Will.  Below we address some of the advantages of this type of Will structure.

A discretionary trust structure offers flexibility:

• On the death of the testator, the trustees are equipped to adapt the distributions according to the needs of the beneficiaries and the assets that are available.
• The trustees will be guided and governed by an accompanying letter of wishes.
• If the testator changes their wishes during their lifetime, they can simply prepare a new letter of wishes without the need to update their Will.
• You can specify who your beneficiaries might be or simply give guidance on who to include which gives your trustees powers to consider those who might also benefit, including those not yet born.

The discretionary trust Will can offer a protection of assets:

• The beneficiaries are not absolutely entitled to the assets held within the trust and so this type of Will structure can ensure that assets are managed efficiently by the trustees in the event that beneficiaries might be vulnerable or not yet in a position to manage their finances.
• A beneficiary might be on means tested benefits and to receive an inheritance could change this. The discretionary trust could allow the trustees to assist a beneficiary without necessarily affecting the receipt of the benefits.
• A trust structure may also offer a degree of protection should any beneficiary be subject to claims from either creditors or former spouses.

Guidance given when preparing the Will can assist to make this a tax efficient option:

• The assets can be appointed out to beneficiaries in a tax efficient way depending on the tax rules in place at the time.
• A beneficiary may prefer not to inherit money directly, so this gives them the option to limit the value of their own estate for tax planning purposes.

There are of course other factors to consider and when considering this type of Will, a solicitor will guide you through the finer details. If you would like further information on this type of Will structure or to discuss another, please contact the Private Client Team at wealth@wansbroughs.com.