In England and Wales, we know how vital it is to safeguard assets for the future. One smart way to do this is by looking into a trust property purchase. Whether you’re buying your first home, a replacement property, or an investment property, purchasing it in the name of a trust — rather than in your personal name — adds an extra layer of protection from the modern threats: care fees, divorce, creditors, litigation, and inheritance tax.
As Mike Pugh of MP Estate Planning says: “Trusts are not just for the rich — they’re for the smart.” We’re here to guide you through this process, ensuring your family’s future is safe and sound.
Key Takeaways
- Buying property through a trust can protect it from care fees, divorce, creditors, and litigation
- Trusts have been used in England for over 800 years — they work, and the wealthy have always known this
- Property in a trust bypasses probate delays — your family gets access without waiting months for a Grant of Probate
- Trustees can sell a trust property and purchase a replacement home in the trust’s name
- Investment and Buy-to-Let properties should ideally be held in a trust or other legal arrangement, not your personal name
What Is a Trust and How Does It Work?
A trust can be a valuable tool in property ownership, offering protection and flexibility. It’s a legal arrangement — not a legal entity — where the settlor transfers assets to the trustees, who hold legal ownership and manage them for the benefit of the beneficiaries. Trusts have no separate legal personality — the trustees are the legal owners. You need a minimum of two trustees, and the same person can be the settlor, a trustee, and a beneficiary.
Definition of a Trust
A trust separates legal ownership from beneficial ownership — a concept England invented over 800 years ago when knights going off to the Crusades would say to a trusted friend, “Hold my land while I’m away. Make sure my wife and children are looked after.” That principle — legal title held by trustees, benefits enjoyed by other people — has become the foundation of modern English trust law.
When a home is purchased or held under a trust, the trustees are the legal owners on the Land Registry title, but the beneficiaries enjoy the benefit of the property. You no longer personally own the property — the trustees hold it on behalf of the beneficiaries. So when threats come along — care fees, divorce, creditors — you can say “What house? I don’t own a house.” Because legally, you don’t.
Types of Trusts
In the UK, there are two main ways to classify trusts. First, by when they take effect:
- Lifetime trusts — established while the settlor is alive and can provide benefits immediately. These can be either revocable (changeable) or irrevocable (fixed once established, unless the trust deed includes Standard and Overriding powers that give trustees certain defined flexibility). Irrevocable lifetime trusts offer the strongest protection and the best potential for inheritance tax benefits.
- Will trusts (testamentary trusts) — created through a will and only take effect after the settlor’s death. Often used in blended family situations to protect assets for children from a previous relationship.
Second, by how they operate:
- Discretionary trusts — the most commonly used type (98–99% of trusts settled in the UK). Trustees decide how to distribute income and capital among beneficiaries. Can last up to 125 years. Because no single beneficiary has an automatic right to the assets, HMRC can’t point the finger at anyone and say “that’s your money.” This is what provides the key protection.
- Bare trusts — the beneficiary has an absolute right to the assets at age 18. Simpler, but not IHT-efficient — the beneficiary is treated as the absolute owner for inheritance tax purposes. Cannot protect against care fees or divorce. The trustee is merely a nominee.
- Interest in possession trusts — one beneficiary (the life tenant) receives income or the right to use the trust property, while the capital passes to other beneficiaries (the remaindermen) when that interest ends. Common in will trusts to prevent sideways disinheritance.
For more detailed guidance on setting up a trust, you can refer to our resource on how to put your house in a trust in the UK.
Key Components of a Trust
The key parties in a trust are:
- The settlor — the person who creates the trust and transfers assets into it
- The trustees (minimum of two) — who take legal ownership and manage the assets according to the trust deed
- The beneficiaries — those who benefit from the trust’s assets
The trust itself is governed by a trust deed — a legal document that sets out the rules, powers, and terms. Because trust deeds are important legal instruments, the wording must be precise with no room for ambiguity.
Benefits of Buying a Home Under a Trust
Buying a house under a trust has many benefits. Most people think trusts are only for the wealthy — but the far more common problems trusts solve are protecting your home from care fees and shielding it from a future divorce.
Asset Protection
Putting your home in a trust can protect it from multiple modern threats:
- Care fees — every year, between 40,000 and 70,000 homes are sold to pay for care in the UK. In England, if you have capital above £23,250, you’re expected to fund your own care — and average care costs run to £1,100–£1,500 per week (or more in London and the south). Putting your home into trust years in advance (before there’s a foreseeable need for care) means it’s much more likely to go to your children, not the local authority. The entire cost of setting up a trust — from £850 — is equivalent to less than two weeks of care fees.
- Divorce — with a UK divorce rate of around 42%, assets held in a discretionary trust are owned by the trustees, not the individual. When a child gets divorced, they can say “What house? I don’t own a house” — because they don’t. The trust does.
- Creditors and litigation — if you or a beneficiary face a lawsuit or bankruptcy, assets held in trust are protected because they’re not personally owned.
If you own a business or Buy-to-Let property, a trust can keep those assets separate from personal liabilities. If someone wants to sue you personally, they won’t be able to reach property that’s been placed in trust years before the problems arrive.
Bypassing Probate Delays
When someone dies with property in their sole name, the family must apply for a Grant of Probate (or Letters of Administration if there’s no will) before they can deal with the estate. The full probate process currently takes anywhere from 3 to 12 months, and where property needs to be sold, it can take 9 to 18 months or longer. During this time, the property cannot be sold or transferred, sole-name bank accounts are frozen, creditors are paid first, then HMRC takes its share of inheritance tax. Only what remains passes to your loved ones. On top of that, the will becomes a public document once the Grant is issued — anyone can obtain a copy for a small fee.
When property is held in a lifetime trust, none of this applies. Your assets are never frozen because nothing is in your personal name — the trustees can act immediately, saving your family significant time, stress, and money.
Tax Efficiency
There are potential tax benefits to buying a house through a trust:
- Inheritance tax — transferring property into an irrevocable lifetime trust can start working towards removing the asset from your estate. IHT is charged at 40% on estates above the £325,000 nil rate band (frozen since 2009 and confirmed frozen until at least April 2031) — so the potential savings are significant. For transfers into discretionary trusts, the mechanism is a Chargeable Lifetime Transfer (CLT), not a Potentially Exempt Transfer — but with the right structure, significant savings are achievable.
- Capital gains tax deferral — for investment properties, holdover relief may be available when placing a property into trust, deferring CGT. Within the trust, a discretionary trust can hold assets for up to 125 years.
- Care fee savings — while not technically a tax, protecting your home from care fees of £1,100–£1,500+ per week can save families hundreds of thousands of pounds over time.
It is a common misconception that putting property in a trust automatically excludes it from IHT — this is not the case. Trusts are tax-efficient planning tools, not tax avoidance schemes. But with careful planning and specialist advice, significant savings can be achieved.
| Benefit | Description |
|---|---|
| Care Fee Protection | Protects your home from being used to pay local authority care fees — must be planned years in advance before any foreseeable need for care arises |
| Divorce Protection | Assets in a discretionary trust are owned by the trustees, not the individual — protecting against divorce settlements |
| Bypassing Probate Delays | Trust assets pass to beneficiaries without the delays, costs, and public nature of the probate process |
| Tax Efficiency | Potential reductions in inheritance tax through careful planning, plus capital gains tax deferral for investment properties using holdover relief |
| Creditor Protection | Shields property from creditors, litigation, and bankruptcy claims — provided the trust was set up well in advance |
Choosing the Right Type of Trust for a Property Purchase
Choosing the right trust is key when buying or holding a home. The trust you pick can affect your tax position, level of protection, and control over your property.
Discretionary Lifetime Trusts
For most homeowners and property investors, a discretionary lifetime trust is the most appropriate choice. This is by far the most commonly used trust type in the UK — 98–99% of trusts settled are discretionary. The trustees have full power to decide who benefits, when, and how much, which provides the strongest protection from care fees, divorce, creditors, and IHT.
A discretionary lifetime trust can be either revocable or irrevocable:
- A revocable trust allows the settlor to retain control, make changes, or revoke the trust during their lifetime. However, HMRC treats the assets as still belonging to the settlor — meaning it provides no inheritance tax benefit and weaker asset protection. It is a settlor-interested trust.
- An irrevocable trust cannot be revoked once established (although the trust deed can include Standard and Overriding powers to give the trustees certain defined flexibility without making the trust revocable). The assets are no longer treated as part of the settlor’s estate, offering significant protection and potential tax benefits. A home can be placed in an irrevocable trust and the settlor can continue to live in it — protecting the home from care fees and, with proper planning, working towards reducing IHT exposure.
For most families putting their home into trust, if the value is under £325,000 (or £650,000 for two separate trusts created by a married couple), there is no entry charge under the relevant property regime. The maximum periodic 10-year charge is 6% of trust property value above the nil rate band — for most family homes below the NRB, this is zero. Exit charges are proportional to the last periodic charge — less than 1% in most cases, and often zero.
For more on our Family Home Protection Trust, visit MP Estate Planning.
Bare Trusts
A bare trust gives the beneficiary an absolute right to the assets at age 18 (under the principle in Saunders v Vautier, the beneficiary can collapse the trust once they reach majority). While simpler, it has significant limitations: it is not IHT-efficient (the beneficiary is treated as the absolute owner, so assets remain in their estate), offers no care fee protection (the beneficiary owns the assets outright), and provides no divorce protection. Bare trusts are best suited for holding assets for minors until they reach adulthood — not for long-term property protection.
Will Trusts (Testamentary Trusts)
A will trust is created through your will and takes effect after your death. It’s commonly used in blended family situations — for example, creating an interest in possession trust that gives a surviving spouse the right to live in the property (as the life tenant), while ensuring the capital ultimately passes to the settlor’s children (as remaindermen) and not to a future partner. Will trusts provide valuable protection after death but offer no benefits during your lifetime — they don’t protect against care fees, divorce, or creditors while you’re alive.
Trusts for Buy-to-Let and Investment Properties
If you own Buy-to-Let or investment properties, you should seriously consider holding them in a trust or other legal arrangement rather than your personal name. Properties in your personal name are exposed to IHT at 40%, care fee assessments, divorce settlements, and creditor claims.
For one or two BTL properties where your children are over 18, a Settlor Excluded Asset Protection Trust can remove the property from your personal estate, reduce your IHT exposure, and protect against care fees, divorce, litigation, and bankruptcy. The transfer into trust is a Chargeable Lifetime Transfer — but if the value falls within your available nil rate band, there’s no immediate charge. Holdover relief may also be available to defer any CGT on the transfer. Within the trust, assets can be held for up to 125 years.
The Process of Setting Up a Trust for Property
Buying property under a trust is a smart move to protect your assets. Setting up a trust means following clear legal steps to ensure the trust is valid and the property is properly transferred.
Legal Requirements
For a trust to be valid, it must satisfy the three certainties: certainty of intention (you deliberately created it), certainty of subject matter (the property is clearly identified), and certainty of objects (the beneficiaries are clearly ascertainable). The trust must also be registered on HMRC’s Trust Registration Service (TRS) within 90 days of creation — this is mandatory for all UK express trusts.
Key steps include:
- Check the title and ownership. Is the property mortgage-free or mortgaged? Sole ownership or joint? If held as joint tenants, you’ll first need to sever the tenancy to create a tenancy in common — otherwise you can’t control what happens to your share on death.
- Draft the trust deed. This sets out the rules, powers, trustees, and beneficiaries. The wording must be precise.
- Transfer the property. Use a TR1 form (no mortgage) or Declaration of Trust (with mortgage — transferring beneficial interest while legal title remains unchanged because lender consent is needed). A Form RX1 places a restriction on the title at Land Registry — nothing can be sold or mortgaged without trustee consent.
- Register with Land Registry. Filing with HM Land Registry is a regulated activity requiring a solicitor or licensed conveyancer. Up to four trustees can be listed on the property title.
- Register with HMRC. All trusts must be registered on the Trust Registration Service within 90 days. Importantly, the TRS register is not publicly accessible (unlike Companies House).
Choosing a Trustee
It’s all in the title — “trustee.” Do you trust them to do the job? You need a minimum of two trustees. The settlor can also be a trustee (which keeps you in control), but you should also include trustees who are likely to outlive the settlor — usually your adult children or other younger family members.
When choosing trustees, consider:
- Do you trust them to act in the best interests of the beneficiaries?
- Are they likely to outlive the settlor?
- Do they understand the purpose of the trust?
- Is there a clear process in place for removing and replacing trustees if someone can’t or won’t continue?
Drafting the Trust Deed
The trust deed is the founding legal document of the trust. Because trust deeds are important legal instruments, the wording needs to be precise without any room for ambiguity. A well-drafted trust deed should include:
- The identity of the settlor, trustees, and beneficiaries
- A clear description of the trust property
- The trustees’ powers and duties
- Whether the trust is revocable or irrevocable
- Provisions for Standard and Overriding powers (if applicable)
- The duration of the trust (up to 125 years for discretionary trusts in England and Wales)
- A letter of wishes — while not legally binding, it provides guidance to trustees on how the settlor would like the trust to be managed
Financing Options for Buying a Home Under a Trust
Understanding financing options is key when buying a home under a trust. The way the property is financed can affect both the trust arrangement and the level of protection it provides.
Mortgages and Trusts
Getting a mortgage for a property held in a trust is possible but more complex than a standard purchase. Key considerations include:
- Lender requirements — not all lenders will lend to trustees. You’ll need to find a lender experienced with trust-owned property.
- Legal and beneficial ownership distinction — if there’s an existing mortgage, the lender already has a charge on the title. You can’t move legal title without lender consent. This is why a Declaration of Trust is typically used to transfer the beneficial interest while leaving legal title unchanged. The English concept of separating legal and beneficial ownership — invented over 800 years ago — is what makes this possible.
- Mortgage reduction, property growth — when you use a Declaration of Trust, the mortgage stays with the legal owner but reduces over time as payments are made. Meanwhile, the property value typically increases. All of that growth happens inside the trust, outside your personal estate.
- Replacement purchases — if a trust property is sold, the trustees can purchase a replacement home in the trust’s name. The proceeds stay in the trust and the new property enjoys the same protections.
Alternative Financing Methods
There are other ways to finance a property purchase within a trust:
- Cash purchase by the trustees — the simplest approach. The trustees purchase the property using trust funds, and the property is registered directly in their names at Land Registry.
- Family funding — sometimes family members contribute funds to the trust for a property purchase. The tax implications of this must be carefully considered — any transfer into a discretionary trust is a Chargeable Lifetime Transfer, not a Potentially Exempt Transfer.
- Existing trust assets — if the trust already holds cash or other liquid assets (for example, from the sale of a previous trust property), these can be used towards the purchase.
Important: any lifetime transfer into a discretionary trust that exceeds the settlor’s available nil rate band (currently £325,000) could trigger an immediate lifetime charge of 20% under the relevant property regime. For most families putting their home into trust, the value falls within the NRB and the charge is zero — but this is why specialist advice is essential.
The Role of a Specialist Estate Planner
A specialist estate planner is essential when buying or placing property in a trust. The law — like medicine — is so broad that you wouldn’t want your GP acting as your surgeon. Likewise, a general high street solicitor may not be as up-to-date on trust planning, inheritance tax planning strategies, and care fee protection as a specialist who deals with trusts every single day.
Importance of Specialist Guidance
Professional guidance ensures the trust is set up correctly and that the property transfer is properly executed. A specialist can help with:
- Drafting a precise trust deed tailored to your specific situation
- Advising on the right type of trust for your goals (care fee protection, IHT planning, divorce protection)
- Handling the conveyancing — a regulated activity that not all conveyancers understand when trusts are involved
- Ensuring the trust is registered with HMRC’s Trust Registration Service within the 90-day deadline
- Running your estate through a comprehensive threat analysis — such as MP Estate Planning’s Estate Pro AI, a proprietary 13-point assessment — to identify all risks
Selecting the Right Specialist
When choosing a specialist estate planner, consider:
- Specialisation — do they deal with trust planning every day, or is it a sideline? You want someone who is up-to-date on the latest inheritance tax rules and planning strategies.
- Transparency — are their prices published and clear? MP Estate Planning is the first and only company in the UK that actively publishes all prices on YouTube. Straightforward trusts start from £850.
- Track record — do they have client testimonials and a proven history of successful trust planning?
- Comprehensive approach — do they consider the full picture including IHT, care fees, divorce, probate, and capacity planning (including Lasting Powers of Attorney)?
Tax Implications of Purchasing Property Through a Trust
Buying a home through a trust involves important tax considerations. Understanding these is essential to ensure your trust is structured to achieve the best outcome for your family.
Inheritance Tax Considerations
Inheritance tax in the UK is charged at 40% on estates above the £325,000 nil rate band (which has been frozen since 2009 and is confirmed frozen until at least April 2031). The nil rate band is transferable between spouses and civil partners — so a married couple can have up to £650,000 between them. There’s also the residence nil rate band (RNRB) of £175,000 per person (£350,000 for a couple), but this is only available if a qualifying residential interest passes to direct descendants — children, grandchildren, or step-children. The RNRB is not available for nephews, nieces, siblings, friends, or charities, and it tapers by £1 for every £2 the estate exceeds £2,000,000. The combined maximum for a married couple is £1,000,000 (£650,000 NRB + £350,000 RNRB). The type of trust you choose has a significant impact on IHT:
| Trust Type | Inheritance Tax Treatment |
|---|---|
| Discretionary Trust (Irrevocable) | Subject to the relevant property regime: entry charge of 20% on transfers above the available NRB (zero for most family homes), periodic 10-year charge (maximum 6% of value above NRB — often zero), and proportional exit charges (typically less than 1%). With proper planning, significant IHT savings are achievable. |
| Interest in Possession Trust | Treatment depends on when created. Pre-22 March 2006 IIP trusts may benefit from the life tenant’s NRB. Post-March 2006 IIP trusts are generally treated as relevant property (same as discretionary), unless they qualify as an Immediate Post-Death Interest (IPDI) or disabled person’s interest. |
| Bare Trust | Not IHT-efficient — the beneficiary is treated as the absolute owner for inheritance tax purposes. Assets remain in the beneficiary’s estate and are fully exposed to IHT, care fees, and divorce. |
| Revocable Trust | Provides no IHT benefit — HMRC treats assets as still belonging to the settlor (settlor-interested trust). The assets remain in the settlor’s estate. |
It’s a common misconception that putting property in a trust automatically excludes it from IHT. This is not the case — but with careful planning using the right type of irrevocable trust, significant savings are achievable. For a Family Home Protection Trust (Plus), the arrangement is specifically designed to retain eligibility for the RNRB while also providing care fee and probate protection.
Capital Gains Tax Implications
Capital gains tax is another important consideration. Trusts currently receive only half the annual CGT exemption available to individuals (currently £1,500 for trusts). The CGT rate for trusts is 24% on residential property and 20% on other assets.
Key points to consider:
- Your main residence normally qualifies for principal private residence (PPR) relief at the point of transfer into trust, meaning no CGT is triggered on that transfer.
- Second properties and Buy-to-Let properties may trigger CGT on transfer — but holdover relief may be available when transferring assets into certain trusts, deferring any immediate CGT charge.
- If a trust subsequently sells a property for more than it was worth when it entered the trust, the trustees will owe CGT on the gain.
- Appointing property out of the trust to a beneficiary before disposal may allow holdover relief to apply again, or the gain to be taxed at the beneficiary’s marginal rate.
Professional advice is essential to structure the trust correctly and minimise unnecessary tax exposure. Trustees must file an SA900 trust tax return with HMRC.
Managing Property Assets in a Trust
Managing property assets in a trust is an ongoing responsibility. The trust protects your assets — but only if it’s properly funded and maintained.
Responsibilities of the Trustee
Trustees manage the trust property according to the trust deed and in the best interests of the beneficiaries. Key responsibilities include:
- Ensuring the property is properly insured and maintained
- Handling rental income and accounting for it correctly (for BTL properties)
- Filing trust tax returns (SA900) with HMRC annually
- Keeping the Trust Registration Service entry up to date — any changes to trustees, beneficiaries, or trust details must be reported
- Keeping accurate records of all trustee decisions (minutes)
- Making decisions about whether to sell, retain, or purchase replacement property
Importantly, if a trust property is sold, the trustees can purchase a replacement in the name of the trust. The new property enjoys the same protections as the original. The proceeds and/or the replacement property stay within the trust.
Periodic Reviews and Updates
Regular reviews are crucial. We recommend reviewing the trust annually, or whenever significant life events occur — births, deaths, marriages, divorces, or changes in financial circumstances. It’s also important to review when legislation changes (for example, the confirmed freeze of the nil rate band until 2031, or the upcoming changes to inherited pensions from April 2027).
| Review Aspect | Description | Frequency |
|---|---|---|
| Property Valuation | Checking the property’s current market value for tax and planning purposes — particularly important ahead of 10-year periodic charges | Annually |
| Trust Deed Alignment | Ensuring the trust deed still reflects your wishes and family circumstances | Annually |
| Tax Compliance | Filing SA900 returns and ensuring TRS registration is up to date | Annually |
| Legislative Changes | Reviewing whether any changes in IHT, CGT, or trust law affect your trust — the frozen NRB means more families are caught by IHT every year | As changes occur |
| Trustee Suitability | Checking trustees are still appropriate, willing, and able to act — and that a clear process exists for replacing them if needed | Annually |
Common Misconceptions About Trusts
Understanding Trusts vs. Wills
A trust is not a replacement for a will — you need both. A will can appoint guardians for minor children and distribute any assets outside the trust. It can also direct remaining personal assets and deal with personal possessions. A lifetime trust protects your assets during your lifetime and ensures they pass to your beneficiaries without probate delays. Everyone needs a will; many people would also benefit enormously from a trust alongside it.
Clarifying Ownership Issues
Many people think putting property in a trust means losing control. This is not true. If you are a trustee of your own trust (which the settlor typically should be), you remain in control of the property day-to-day. You no longer legally own it — the trustees hold it — but you control it because you’re one of the people in charge. The people in our population who own the most assets are generally the older generation — and they are also the most vulnerable to care fees, probate delays, and family disputes. A trust lets you keep practical control while removing the risks of personal ownership. Plan, don’t panic.
FAQ
What is the main purpose of buying a home under a trust?
Buying a home under a trust protects your property from the modern threats: care fees (currently £1,100–£1,500+ per week), divorce (around 42% of UK marriages end in divorce), creditors, litigation, and inheritance tax (40% above the £325,000 nil rate band). It also bypasses probate delays, meaning your family can access the property without waiting months for a Grant of Probate.
How does a trust protect my home from creditors?
Once your home is in a discretionary trust, it is owned by the trustees — not by you personally. Creditors can only pursue assets that you personally own. Because the trustees hold the property for the benefit of the beneficiaries, it’s protected from personal creditor claims, litigation, and bankruptcy — provided the trust was set up well in advance of any claims arising.
What types of trust can be used for buying a home?
The most common choice for homeowners in the UK is a discretionary lifetime trust (98–99% of trusts settled). For your main residence, MP Estate Planning’s Family Home Protection Trust (Plus) is specifically designed to protect against care fees while retaining IHT reliefs including the RNRB. For investment properties, a Settlor Excluded Asset Protection Trust may be more appropriate. Bare trusts and will trusts are also available but offer significantly less protection during your lifetime.
Can I still live in a property that is owned by a trust?
Yes. A home can be placed in a trust — including an irrevocable discretionary trust — and the settlor can continue to live in it. You don’t own it, but the trustees permit you to occupy it. If you later want to move, the trustees can sell the home and purchase a replacement in the trust’s name, with the new property enjoying the same protections.
How does buying a home under a trust affect my tax obligations?
Trusts have specific tax implications. For inheritance tax, transfers into discretionary trusts are Chargeable Lifetime Transfers — but there’s no entry charge if the value falls within your available nil rate band (£325,000). Trusts pay income tax at the trust rate (45% on non-dividend income, 39.35% on dividends, with the first £1,000 at basic rate). CGT is charged at 24% on residential property and 20% on other assets. The trust must file an SA900 tax return with HMRC annually. Specialist advice is essential to structure everything tax-efficiently.
Can I finance the purchase of a home under a trust using a mortgage?
Yes, but it’s more complex. Not all lenders will lend to trustees, and there are specific requirements around lender consent. If there’s an existing mortgage, a Declaration of Trust is typically used to transfer the beneficial interest into the trust while leaving legal title unchanged — because the lender’s consent would be needed to move legal title. Over time, the mortgage reduces while property value grows, and all that growth happens inside the trust.
What are the ongoing responsibilities of managing a trust property?
Trustees must manage the property (insurance, maintenance, repairs), keep accurate records and minutes of all decisions, file trust tax returns (SA900) with HMRC, keep the Trust Registration Service entry updated within the required timeframes, and conduct regular reviews to ensure the trust remains aligned with your circumstances and any changes in legislation.
Are trusts only for the wealthy?
Absolutely not. Most people think trusts are exclusively for the rich — but the far more common problems trusts solve are protecting your home from care fees (£1,100–£1,500+ per week) and divorce (around 42% of UK marriages end in divorce). With the average home in England now worth around £290,000 and the nil rate band frozen at £325,000 since 2009, more ordinary families than ever are caught by inheritance tax. A straightforward trust starts from £850 — the equivalent of less than two weeks of care fees. England invented trust law over 800 years ago. Trusts are not just for the rich — they’re for the smart.