What Can You Put in a Trust?

When families seek to protect wealth and pass assets to the next generation, a key question is what can you put in a trust? You can put money, property, investments, shares in a family business and valuable possessions such as jewellery or art into a trust. However, deciding what you can put in a trust involves more than identifying the assets you own. The right approach depends on the trust’s purpose, the tax consequences and whether you need to continue using or benefiting from those assets.

What is a trust?

A trust is a legal arrangement in which a settlor transfers assets to trustees to hold and manage for beneficiaries according to the trust terms. Legal ownership rests with the trustees, the beneficial interest belongs to the beneficiaries.

What assets can you put into a trust?

Almost any asset you own can be transferred, cash, property, investments, shares, including in a family business and valuables such as jewellery, art or antiques. What we really need to consider is whether the transfer to a trust is beneficial, tax-efficient and workable.

Residential or investment property can be placed in trust, often for inheritance tax planning, care-fee protection, or to keep a much-loved family home for future generations. Continuing to live in a house transferred into trust needs careful thought as giving an asset away while still benefiting from it can trigger the gift with reservation of benefit rules, potentially keeping it in your estate for Inheritance Tax. The same principle applies to valuables you continue to use or enjoy.

Shares in a family business are commonly placed in trust as a succession tool. A business owner may want their children eventually to benefit from the business without simply handing the shares to them immediately. This can help retain family control and may attract business property relief.

Any transfer requires a review of the company’s articles, shareholders’ agreements and the trustees’ ability to handle business decisions. A poorly structured transfer can create family friction or complicate future sales or refinancing. The Inheritance Tax rules affecting Business Relief changed from 6 April 2026, so current advice is particularly important when trusts and family businesses are involved

What happens once an asset is in trust?

Once transferred, the trustees hold the legal title. Your ability to use or benefit from the asset depends on the trust type and terms. In a discretionary trust you may be a potential beneficiary and could receive income or capital at the trustees’ discretion. Continuing to enjoy an asset without proper arrangements can bring it back into your estate for inheritance tax purposes. Most trusts can accept further transfers (although tax advice should be obtained beforehand) and this is a flexible feature many families use over time as circumstances change.

Which assets suit a trust?

Cash and quoted investments are usually simplest to administer. Property and private company shares can offer strong planning benefits but bring higher costs, complexity and reduced day-to-day control. The decision should be driven by the purpose of the trust and a realistic assessment of how the family wants to interact with the asset long term.

Assets with a low value relative to ongoing costs are often unsuitable and the income tax implications of holding a particular asset in trust should always be considered.

Some assets such as cash reserves, the main home and resources to meet the settlor’s ongoing needs throughout their lifetime should be kept outside the trust. A well-structured trust always prioritises the settlor’s financial well-being, ensuring that any transfer of assets still leaves them in a stable and protected position.

For more on whether this approach suits your circumstances, read our guide to setting up a trust to protect family wealth.

Tax and practical consequences

Transfers into most relevant property trusts are chargeable lifetime transfers for inheritance tax and may trigger an immediate 20% charge above the nil-rate band. Capital gains tax may also arise on the disposal to the trustees, although hold-over relief is often available. For property, stamp duty land tax can also arise. Exact liabilities depend on the type of trust, the value, and available reliefs.

Our inheritance tax planning solicitors can assess the tax implications of a proposed transfer and explain how it fits with your wider estate planning.

A professional calculation before transfer is essential. Whether trust assets still count as part of your estate depends on the type of trust and whether the settlor has reserved a benefit.

Assets in a discretionary trust, settled more than seven years before death are generally outside the estate, subject to the usual trust charges. Assets in which the settlor retains an interest, or that fall under the gift-with-reservation rules, can still form part of the estate.

This is one of the areas where we see the most misunderstanding and careful structuring is required.

Before Taking Action

If your estate includes business interests, a property portfolio or other complex assets, choosing what to transfer should form part of your wider estate planning.

Your initial steps should include:

• Confirm the trust’s purpose and that the structure achieves it.
• Obtain current valuations and understand immediate tax implications.
• Review mortgages, charges, shareholders’ agreements or co-ownership arrangements.
• Choose trustees with the necessary time, skill and independence.
• Consider how the trust interacts with your will, lasting powers of attorney and overall estate planning.
• Understand the trustees’ ongoing administrative and reporting duties.

Placing assets into trust can be a powerful way to protect wealth and provide for future generations but the practical and tax consequences vary significantly depending on the asset and the structure used. The families who achieve the best outcomes are those who match the right assets to the right trust, with a clear understanding of the day-to-day realities alongside the benefits.

Contact a Trust Solicitor

Understanding what you can put in a trust is the starting point; deciding which assets to include requires advice tailored to your circumstances.

Our Wills, Trusts and Tax team can help you assess your options, explain the legal and tax implications, and structure a trust around your family’s needs and your own financial security. Contact our solicitors to discuss what you want to achieve and how we can help.

 Speak to a solicitor about putting assets into a trust