It’s one of those tasks everyone means to get round to eventually right up until “eventually” becomes too late. Wills and trusts aren’t just paperwork for the wealthy or the elderly; they’re the difference between your wishes being followed exactly, or a court deciding who gets what based on rules you had no say in.
So which do you actually need a will, a trust, or both? Let’s break it down properly.
Why Do I Need a Will?
A will is a legal document that sets out exactly what happens to your money, property, and possessions after you die. Without one, you don’t get to choose the law does, through something called the rules of intestacy.
Here’s the part that catches people out: if you die without a valid will, your spouse or civil partner doesn’t automatically inherit everything. Under intestacy rules, they may only receive a portion of your estate, with the rest split according to a fixed legal formula. And if you’re in an unmarried relationship, however long-standing, your partner has no automatic entitlement at all.
A will lets you:
- Decide exactly who inherits what
- Name executors you trust to carry out your wishes
- Appoint guardians for children under 18
- Reduce the risk of family disputes after you’re gone
- Lay the groundwork for inheritance tax planning
Dying without one dying intestate also tends to take longer to resolve and can rack up additional legal costs, which are deducted from the estate before your family sees a penny of it.
What Is the Difference Between a Will and a Trust?
This is the question that trips up most people, so here’s the plain version:
- A will only takes effect after you die. It’s a set of instructions for how your estate should be distributed.
- A trust can take effect during your lifetime or after death, and it works differently instead of assets passing directly to a beneficiary, they’re held and managed by a trustee on the beneficiary’s behalf, according to rules you set out in a trust deed.
Think of it this way: a will says “give this to that person.” A trust says “hold this for that person, and only release it under these specific conditions” which might be an age they need to reach, a purpose the money can be used for, or protection from creditors, divorce, or care home fees.
Many people need a will. Fewer people need a trust but for the right situation, a trust does something a will simply can’t.
What Is a Family Trust And Do You Actually Need One?
A family trust is typically used to hold assets property, savings, investments for the benefit of family members, managed by appointed trustees. Common reasons people set one up include:
- Property protection keeping a family home out of means-tested care fee assessments in later life
- Asset protection shielding inheritance from a beneficiary’s divorce, bankruptcy, or financial mismanagement
- Inheritance tax planning certain trust structures can help manage a family’s exposure to inheritance tax, depending on individual circumstances
- Controlled inheritance releasing funds to children or grandchildren at a specific age, rather than as a lump sum at 18
Trusts aren’t automatically the right answer for everyone they add legal complexity and ongoing administrative responsibility for trustees but for larger estates, blended families, or property owners wanting to protect assets for the next generation, an asset protection trust can be genuinely valuable.
What Is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney is different from both a will and a trust it doesn’t deal with what happens after you die, but with what happens if you’re still alive and lose the mental capacity to make decisions yourself, whether through illness, injury, or dementia.
There are two types:
- LPA for Property & Affairs allows someone you trust to manage your finances, bills, and property
- LPA for Personal Welfare allows someone to make decisions about your care and medical treatment if you’re unable to
Without an LPA in place, your family may need to apply to the Court of Protection to gain legal authority to manage your affairs a process that’s slower, more expensive, and far more stressful than setting one up in advance.
Mirror Wills: The Simple Option for Couples
If you’re married or in a civil partnership, mirror wills are a common and cost-effective option each partner has a near-identical will, typically leaving everything to the surviving partner first, then to children or other beneficiaries. They’re straightforward, but it’s worth knowing they’re not legally binding on each other a surviving partner can still change their own will after the first death.
For couples wanting more certainty over what happens to jointly built assets particularly with children from previous relationships this is often where a trust becomes worth discussing alongside a standard will.
Wills and Trusts for Property Owners
If you own your home particularly if it’s your family’s main asset a will (and possibly a trust) becomes even more important. Property is usually the single largest asset in most people’s estates, and without clear instructions, it can become the centre of prolonged disputes between beneficiaries, or be subject to unnecessary inheritance tax exposure that better planning could have reduced.
For homeowners, this is worth planning alongside your mortgage and broader financial position, not as a separate, disconnected task.
Why Use a Professional Will Writing Service
It’s tempting to reach for a cheap online template, but a DIY will is far more likely to contain errors that make it invalid, ambiguous, or open to challenge exactly the outcome a will is meant to prevent. Professional will writing services take into account your full financial and family circumstances, ensure the document is legally valid, and can flag where a trust, LPA, or inheritance tax planning should be considered alongside it.
Discount Mortgages can introduce you to specialist partners for wills and trusts advice, tailored to your family and financial circumstances call 0800 298 0678 to find out more.
FAQs: Wills and Trusts in the UK
Why do I need a will? Without a will, your estate is distributed according to the rules of intestacy rather than your own wishes which can mean your spouse doesn’t inherit everything, and unmarried partners inherit nothing at all.
What is the difference between a will and a trust? A will takes effect after death and directly distributes your estate. A trust can take effect during your lifetime or after death, and holds assets via a trustee on a beneficiary’s behalf, under conditions you set.
What is a family trust? A family trust holds assets such as property or savings for the benefit of family members, managed by trustees, often used for property protection, asset protection, or controlled inheritance.
What is a Lasting Power of Attorney (LPA)? An LPA is a legal document allowing someone you choose to make financial or care decisions on your behalf if you lose the mental capacity to make them yourself.
Final Thought
A will is the foundation almost everyone needs. A trust and an LPA are the additional layers worth considering depending on your family situation, your assets, and how much control you want over what happens next whether that’s after you’re gone, or simply if you’re no longer able to decide for yourself.
If you’re not sure where to start, Discount Mortgages can point you toward specialist wills and trusts advice suited to your circumstances.