Estate planning is something many people put off—often until it’s too late. Yet one of the most powerful ways to protect your assets and preserve wealth for future generations is through a family trust. Without it, families in Brighton and across the UK may face serious legal, financial, and emotional complications.
Here’s what can happen if you don’t have a family trust in place.
1. Your Assets May Be Distributed Against Your Wishes
Without a trust, your estate will be handled according to your will—or, if you don’t have one, the rules of intestacy. These rules can produce outcomes you never intended.
For example:
Unmarried partners may receive nothing
Stepchildren and members of blended families may be excluded
Family disputes can arise, delaying probate and increasing costs
A family trust helps ensure your assets are distributed exactly how and when you want, offering far greater clarity and reducing the risk of conflict.
2. Higher Exposure to Inheritance Tax (IHT)
Inheritance Tax in the UK is currently 40% on estates over £325,000 (2025 threshold). Without effective planning, your loved ones could be left with a significant tax bill.
A properly structured family trust can:
Move assets out of your taxable estate
Reduce the impact of IHT
Protect family property, investments, and business assets
Without this protection, beneficiaries may be forced to sell cherished family homes or assets just to pay the tax.
3. Increased Vulnerability to High Care Home Fees
As people live longer, more families are affected by the cost of long-term care. Local authorities can assess your assets—including your home—to determine how much you must contribute.
Without planning, this could drastically reduce what you are able to leave behind.
While you cannot set up a trust simply to avoid care fees (due to “deliberate deprivation” rules), establishing a family trust early as part of genuine estate planning can help offer long-term protection for your estate.
4. Greater Risk of Family Disputes
Inheritance disputes are becoming increasingly common, especially in blended families. Without the structure of a trust:
Wills may be contested
Beneficiaries may challenge decisions
Long, costly legal battles may follow
A family trust provides clear guidelines and oversight by appointed trustees, reducing ambiguity and helping to prevent conflict.
5. Beneficiaries May Lose Their Inheritance
If beneficiaries receive assets outright, those assets may be at risk due to:
Divorce
Bankruptcy
Poor financial management
Creditors or legal claims
A trust ring-fences assets so they can only be used for their intended purpose—such as education, property purchases, or long-term family support—ensuring wealth is preserved for future generations.
6. Limited Flexibility for Future Financial Decisions
Once assets pass directly to beneficiaries, you lose control over how they are managed. Market changes, new tax laws, or unexpected family circumstances can all affect long-term financial stability.
A family trust offers ongoing flexibility, allowing trustees to adapt how assets are managed and distributed over time.
Conclusion
Not having a family trust can leave your estate vulnerable to unnecessary tax, care home fees, family disputes, and financial mismanagement. While trusts require professional setup and ongoing administration, many families find them invaluable for long-term wealth protection.
If you’re unsure whether a family trust is right for your situation, expert guidance is essential.
Speak to Brighton Wills & Family Trusts
Our friendly estate-planning specialist, Jane Amos, can help you explore your options and understand the best way to protect your assets for future generations.
📞 Call us on 01273 385833
💬 Or contact us online and we’ll call you back
Let us help you safeguard your family’s future with clear, reliable estate-planning advice.