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Trusts

How to Set Up a Trust in the UK (and What It Costs)

The main steps in England and Wales, from choosing trustees and drafting the trust deed to registering with HMRC.

10 min read · Written by the Fairchild Oldfield team · Last reviewed: June 2026

90 days
Most trusts created on or after 6 October 2020 need to be registered with HMRC's Trust Registration Service within 90 days of being set up, though some trusts are exempt.
Source: gov.uk, as at June 2026, subject to change.

To set up a trust you decide what assets to put in, choose trustees to manage them, name the beneficiaries, record it all in a trust deed, transfer the assets in, and in most cases register the trust with HMRC. Many people set one up with help from a solicitor because the tax and drafting can be involved.

This guide walks through each step for England and Wales, explains the main roles and trust types, and sets out where the costs and deadlines sit. A trust is a legal arrangement where trustees hold assets for beneficiaries, and getting the structure right matters, so several of the steps below are ones many people choose to take with qualified help. Figures are current as at June 2026 and are subject to change.

The steps to set up a trust

Setting up a trust generally follows the same sequence, whether it is created during your lifetime or written into a will to take effect on death. You define the assets and the people, record the arrangement in a deed, move the assets across, and meet any registration and tax duties. The order below reflects how the process commonly runs in England and Wales.

I

Decide the purpose

Be clear on what the trust is for, such as providing for a child, a vulnerable relative, or part of a wider plan.

II

Choose trustees

Pick people or a professional you trust to manage the assets. Two to four trustees is a common range.

III

Draft the trust deed

Record the settlor, trustees, beneficiaries, assets and the trustees' powers in a written document.

IV

Transfer the assets

Move the money, property or investments into the trust so the trustees become the legal owners.

V

Register and report

Register with HMRC where required, and handle any tax that arises on setting up or running the trust.

Who is involved in a trust

Every trust involves three roles, and one person can hold more than one of them. The settlor puts assets in, the trustees manage them, and the beneficiaries benefit. HMRC defines the settlor as "the person who puts assets into a trust", the trustees as the people who manage it, and the beneficiaries as those who benefit (gov.uk, trusts and taxes, as at June 2026).

  • Settlor. The person who creates the trust and transfers assets into it.
  • Trustees. The legal owners of the trust assets, responsible for managing them for the beneficiaries and following the deed. Many people appoint two to four, and a professional trustee can be used, though a professional will usually charge.
  • Beneficiaries. The people or causes who benefit, either now or in the future, depending on the type of trust.

Choosing which type of trust

The right type of trust depends on how much control you want the trustees to have and who is meant to benefit. A bare trust holds assets outright for a named beneficiary, while a discretionary trust gives trustees discretion over who benefits and when. The choice affects tax treatment, so it is one step many people take with advice.

TypeHow it worksOften used for
Bare trustAssets are held for a named beneficiary who is entitled to them, usually at age 18.Simple gifts to a child or grandchild.
Discretionary trustTrustees decide which of a class of beneficiaries benefits, and how much, and when.Flexibility, vulnerable beneficiaries, blended families.
Interest in possession trustOne beneficiary has a right to income or use of an asset, with capital passing to others later.Providing for a spouse then children.
Will trustA trust written into a will that comes into effect on death.Protecting assets for a surviving spouse or children.

Trusts are taxed differently by type. Source: gov.uk/trusts-taxes, as at June 2026, subject to change. Our companion guides go deeper: Trusts Explained: types and how they work and Discretionary Trusts explained.

The paperwork

The trust deed and transferring assets

The trust deed is the document that brings a lifetime trust into existence. It names the settlor, trustees and beneficiaries, describes the assets, and sets out the trustees' powers and duties. HMRC describes the deed as the document in which "the settlor decides how the assets in a trust should be used" (gov.uk, as at June 2026). Once the deed is signed, the assets are transferred so the trustees become the legal owners, which can involve changing title on property or moving investments.

Because the wording of the deed governs what trustees can and cannot do for years to come, it is generally not treated as a template exercise. A poorly drafted deed can create tax or family problems that are hard to unpick later.

HMRC registration

90 days

Most trusts created on or after 6 October 2020 must be registered on the Trust Registration Service within 90 days of being created (gov.uk, as at June 2026, subject to change). Some trusts are exempt, and a will trust can be exempt while it only holds estate assets for up to two years after death.

How much does it cost to set up a trust?

There is no single price, because the cost depends on the type of trust, the assets involved and how much professional input is needed. A simple lifetime trust drafted alongside a will costs less than a standalone discretionary trust holding property. Alongside the set-up fee, it helps to budget for the running costs, since trusts can carry ongoing tax reporting and, where a professional trustee is used, their charges.

  • Drafting. Many people use a solicitor or a STEP practitioner to draft the deed, and costs vary with complexity. Firms often quote a fixed fee once they understand the arrangement.
  • Registration. Registering a trust on HMRC's Trust Registration Service is done online and does not itself carry a registration fee (gov.uk, as at June 2026).
  • Ongoing. Trusts can face Income Tax, Capital Gains Tax and periodic Inheritance Tax charges depending on type and value, plus any professional trustee fees.

Because an unsuitable trust can cost more than it saves, comparing what is included, and asking for fees in writing before work starts, is something many people find worthwhile.

A worked example (illustration only). Priya wants to leave part of her estate to her two young grandchildren but does not want them to receive large sums at 18. She sets up a discretionary trust, appoints her sister and a professional as trustees, and records in the deed that the trustees decide when and how much each grandchild receives. She transfers £120,000 of investments in, then registers the trust with HMRC within 90 days. This is a general illustration, not a recommendation. Discretionary trusts have their own tax treatment, the right structure depends on the full picture, and figures change, so this is general information rather than a plan for any individual.

Setting up a trust in Scotland and Northern Ireland

This guide describes the law of England and Wales. Trust registration with HMRC applies across the UK, but the underlying trust and succession law differs by nation. Scotland has its own trust law and its own rules on succession, including legal rights that can affect what passes under a trust or will. Northern Ireland has a separate but broadly similar system to England and Wales. Where a trust touches more than one jurisdiction, it can be worth taking advice in each.

Frequently asked questions

How do I set up a trust in the UK?

In broad terms you decide the purpose, choose trustees, name the beneficiaries, record everything in a trust deed, transfer the assets so the trustees become the legal owners, and register with HMRC where required. In England and Wales many people set a trust up with a solicitor or STEP practitioner, because the drafting and tax treatment can be involved and mistakes are hard to unpick.

How many trustees do I need?

A trust can operate with a single trustee, but having more than one is common, and many people appoint between two and four. For trusts holding land, at least two trustees or a trust corporation are generally needed to give a valid receipt on a sale. A professional can act as a trustee, though they will usually charge, so it can be worth weighing cost against expertise.

Do I have to register a trust with HMRC?

Most trusts must be registered on HMRC's Trust Registration Service, generally within 90 days for trusts created on or after 6 October 2020 (gov.uk, as at June 2026). Some trusts are exempt, such as certain will trusts while they hold estate assets for up to two years after death. Because the rules have exceptions, checking the current gov.uk guidance is sensible.

How much does it cost to set up a trust?

Costs vary with the type of trust, the assets and how much professional input is used, so a single figure is rarely meaningful. Registering on the Trust Registration Service does not itself carry a fee (gov.uk, as at June 2026). Drafting and any ongoing trustee and tax costs are separate, and many people ask for fees in writing before proceeding.

Do I need a solicitor to set up a trust?

Not in every case, but trusts often benefit from qualified input. The deed governs the trustees' powers for years, and the tax treatment differs by type, so many people involve a solicitor, a STEP practitioner, or an accountant. Simple arrangements may need less, while property, tax planning or blended families often call for advice from a qualified professional.

Can I be a trustee of my own trust?

In many cases a settlor can also act as a trustee, and people often do. It is worth being aware that this can affect the tax and legal treatment of the trust, particularly where the settlor can also benefit, and the rules here are detailed. Because the position depends on the trust type and the facts, it is commonly discussed with a qualified professional before the deed is finalised.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

For the wider picture, see our estate planning guide, which sets out how a trust sits alongside a will, a lasting power of attorney and inheritance tax planning.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at June 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.

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