Trust Agreement Template for England and Wales

A Trust Agreement creates a legally binding arrangement where someone (the trustee) holds and manages assets on behalf of others (the beneficiaries). It's one of the most common ways to protect and transfer wealth in England, letting you specify exactly how your assets should be handled and distributed.

Under English trust law, these agreements give you remarkable flexibility - you can set up trusts for family members, charitable causes, or business purposes. The trustee must follow your instructions while acting in the beneficiaries' best interests, with duties spelled out in the Trustee Act 2000. The agreement itself becomes the rulebook for how the trust operates.

Trust Agreements become essential when you need to protect assets or manage wealth across generations. They're particularly valuable for parents wanting to secure their children's financial future while maintaining control over how and when funds are distributed. Creating a trust also helps minimize inheritance tax exposure under UK law.

Consider setting up a Trust Agreement when planning for retirement, providing for vulnerable family members, or supporting charitable causes. They're also crucial for business succession planning, ensuring company assets transition smoothly. The arrangement offers protection from creditors and helps avoid the lengthy probate process that affects standard wills.

• Revocable Trust Agreement: Offers flexibility as you can modify or cancel it during your lifetime, ideal for changing family circumstances
• Irrevocable Trust Agreement: Cannot be changed once established, providing tax benefits and permanent asset protection
• Living Trust Agreement: Takes effect during your lifetime, helping avoid probate while maintaining privacy
• Real Estate Trust Agreement: Specifically designed for property holdings, simplifying management and transfer
• Deed Of Trust Agreement: Formally documents property transfer into trust, commonly used in real estate transactions

• Settlors (Grantors): The individuals who create and fund the Trust Agreement, transferring their assets into the trust's care
• Trustees: Legal professionals or trusted individuals who manage the trust assets according to the agreement's terms and the Trustee Act 2000
• Beneficiaries: Family members, charities, or organizations who receive benefits from the trust, either immediately or in the future
• Solicitors: Draft and review Trust Agreements, ensuring compliance with English trust law and tax regulations
• Financial Advisers: Help structure trusts for optimal tax efficiency and investment management

• Asset Inventory: List all property, investments, and assets to be placed in trust, including current market values
• Beneficiary Details: Gather full names, addresses, and birth dates of all intended beneficiaries
• Trustee Selection: Choose trustees and confirm their willingness to serve, considering their financial experience
• Distribution Rules: Decide how and when trust assets will be distributed to beneficiaries
• Tax Planning: Review current inheritance tax position and potential implications
• Document Generation: Use our platform to create a legally-sound Trust Agreement that includes all required elements under English law

• Trust Declaration: Clear statement of intent to create a trust and transfer specific assets
• Parties Section: Full details of settlor, trustees, and beneficiaries with their respective roles
• Trust Property: Precise description of assets being placed in trust, including valuations
• Distribution Terms: Specific rules for how and when trustees should distribute assets
• Trustee Powers: Detailed powers and responsibilities aligned with the Trustee Act 2000
• Duration Clause: Clear statement of trust period and termination conditions
• Governing Law: Explicit statement that English law governs the agreement
• Execution Block: Signature sections for all parties with witness provisions

A Trust Agreement differs significantly from an Asset Purchase Agreement. While both involve transferring assets, they serve distinct purposes and operate under different legal frameworks in English law.

• Purpose and Control: Trust Agreements transfer assets to trustees who manage them for beneficiaries, maintaining ongoing oversight. Asset Purchase Agreements facilitate a one-time sale with complete transfer of ownership
• Duration: Trusts create long-term arrangements that can span generations, while Asset Purchase Agreements conclude once the sale completes
• Tax Implications: Trusts offer specific inheritance tax advantages and planning opportunities. Asset purchases trigger immediate capital gains considerations
• Legal Obligations: Trustees have ongoing fiduciary duties under the Trustee Act 2000. Asset buyers have limited post-purchase obligations beyond payment
• Flexibility: Trusts can adapt to changing family circumstances. Asset purchases are fixed, one-time transactions