Trust & Foundation – wealth management and estate planning
British trusts and foundations for asset protection, family planning and philanthropy
What is a British trust?
A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of beneficiaries. The founder of the trust (the settlor) transfers assets into the trust and sets the rules for how they are to be managed and distributed. British trust law is among the most sophisticated in the world and offers a high degree of flexibility and protection.
Types of trusts and their uses
Discretionary Trust
The trustee decides at their own discretion how to distribute income or assets among the beneficiaries. Ideal for family planning – protecting assets from creditors, family disputes and divorce proceedings.
Bare Trust
The beneficiary has an absolute right to the trust's assets and income. The simplest form – often used for investments or property held for the benefit of children or other family members.
What is a Foundation?
A foundation is a separate legal entity (unlike a trust, which is not a legal person). In Scotland, the Scottish Charitable Incorporated Organisation (SCIO) form is used for charitable purposes, or the Scottish Limited Partnership (SLP) for commercial structures. A foundation is typically suitable for:
- Philanthropic and charitable activities
- Family foundations managing family wealth across generations
- Corporate foundations (CSR activities)
How we help
Trusts and foundations are a specialised area requiring the coordination of legal, tax and administrative expertise. We offer:
- An initial consultation and assessment of whether a trust/foundation is the right tool for your goal
- Coordination with British solicitors to prepare the trust deed
- Setting up the trust's administration (trustee, protector, beneficiaries)
- Ongoing accounting and the trust's tax obligations (Trust Tax Return)
- Registration with HMRC (the Trust Registration Service – TRS has been mandatory since 2022)
Important: Since 2022, all British trusts (with narrowly defined exceptions) must be registered with HMRC's Trust Registration Service (TRS). Registration of existing trusts was mandatory by 1 September 2022. If a trust is not yet registered, this must be remedied without delay.
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