Are Trusts Now Becoming Mainstream?

An evidence‑based review of rising trust usage in the UK

Recent reporting in financial and tax media has highlighted a marked increase in interest among UK families in the use of trusts, particularly for inheritance tax (IHT) planning and inter‑generational wealth transfer. Multiple sources now report a substantial rise in trust registrations, prompting the question: have trusts become “mainstream,” or are they simply more visible due to fiscal pressure?

Growing Use of Trusts in the UK

Government‑linked data and wealth‑management analysis indicate that trusts are increasingly being established by families concerned about inheritance tax exposure.

According to Money Marketing, trust registrations surged to 835,000 in total, with 121,000 new registrations in the 2024–25 tax year alone — a significant increase from the previous year.

Source: Money Marketing – “Trust registrations surge to 835,000 as IHT pressures intensify” https://www.moneymarketing.co.uk/news/trust-registrations-surge-to-835000-as-iht-pressures-intensify/

This sustained rise reflects growing engagement with trust arrangements among a broader range of estates than in the past.

Why the increase?

The drivers are primarily fiscal, not cultural:

• The nil‑rate band (£325,000) and residence nil‑rate band (£175,000) have been frozen for years.

• Property and asset values have risen significantly.

• More families are being drawn into the IHT net (“fiscal drag”).

As a result, families who would not previously have considered trusts are now exploring them as part of estate‑planning strategies.

Media and Adviser Commentary

Industry commentary reinforces this trend. Advisers quoted in recent reporting note a sharp rise in enquiries about trust structures, with some firms reporting near‑doubling of trust openings year‑on‑year.

However, the reasons behind this growth require nuance:

• Increased trust use correlates strongly with IHT pressure and regulatory uncertainty.

• Trusts interact with tax regimes in complex ways, including entry charges, periodic charges, and exit charges for many structures.

• Trusts are not “simple tax shelters” and must be used with precision.

Understanding “Mainstream” in Context

The idea that trusts are now “mainstream” needs careful qualification.

1. Visibility vs. Adoption

Trusts are more visible in mainstream media and among middle‑wealth families. But in absolute terms, they remain specialised instruments. Even with rising registrations, trusts still apply to a minority of UK estates. In simple terms, although interest has increased, it still under reflects latent demand - in other words, a lot of families are still missing out on solutions that could really help them.

2. Tax‑Driven Behaviour

The increase aligns with:

• Frozen IHT allowances

• Rising property values

• Anticipated tax reforms

This suggests reactive planning, not a cultural shift toward universal trust adoption - again, the probable perceived complexity may be putting people off.

3. Complexity and Risk

Trusts:

• Are legally complex

• Can trigger immediate or ongoing tax charges

• Are subject to anti‑avoidance rules (especially for non‑UK assets)

• Require careful drafting and ongoing administration

Professional Advisers consistently warn against oversimplified narratives portraying trusts as “IHT avoidance tools” without sufficient explanation or qualification.

Risks and Mis‑Selling in the Background

Alongside legitimate trust growth, there has been a rise in mis‑selling of so‑called “asset protection trusts.” Some families have been sold structures that:

• Offer no real legal protection

• Fail to achieve the promised tax outcomes

• Create additional administrative burdens

• Expose them to unexpected charges

This trend has been highlighted in consumer‑finance reporting, including Money Week and other outlets.

Source: Money Week - "Families paying up to £5k for fake ‘asset protection’ trusts – warning signs to avoid" Families paying up to £5k for fake ‘asset protection’ trusts – warning signs to avoid | MoneyWeek

Source: Today's Wills & Probate - "Asset protection trusts mis-sold amid potential scandal warns representative body" Asset protection trusts mis-sold amid potential scandal warns representative body | Today's Wills and Probate

At the same time, IHT receipts continue to rise, reaching record levels as thresholds remain frozen — reinforcing public interest in planning tools such as trusts.

Conclusion: Interest Is Rising, but “Mainstream” Requires Nuance

Trusts are undeniably receiving more attention and are being adopted by a growing number of UK families, especially those facing potential IHT liability due to rising asset values and unchanged allowances. Trust Registration Service data supports this observation.

However:

• Trusts are not yet mainstream in the everyday sense (unlike wills or pensions).

• Their usage remains concentrated among families with estate‑tax exposure or specific succession needs.

• Rising media attention reflects increased relevance under fiscal pressure, not universal uptake.

Trusts are becoming more common, but not commonplace.

This article is provided for general informational purposes only and does not constitute legal advice.

Footnotes

1. Money Marketing – “Trust registrations surge to 835,000 as IHT pressures intensify” (2026): https://www.moneymarketing.co.uk/news/trust-registrations-surge-to-835000-as-iht-pressures-intensify/

2. HMRC Trusts & Estates Newsletter (March 2024): https://www.gov.uk/government/publications/hm-revenue-and-customs-trusts-and-estates-newsletters/hmrc-trusts-and-estates-newsletter-march-2024

3. “Small non‑taxpaying trusts to be exempted from compulsory TRS registration” (2025): https://www.murraybeith.co.uk/new/asset-protection/trs-exemption-for-small-trusts-a-welcome-shift-but-it-s-not-retroactive.html#:~:text=time%20(448%20words)-,TRS%20Exemption%20for%20Small%20Trusts:%20A%20Welcome%20Shift%20%E2%80%94%20But%20It's,the%20new%20exemption%20going%20forward.

4. HM Treasury – Trust Registration Service consultation updates (2024): https://www.gov.uk/government/consultations/money-laundering-regulations-review-of-the-uk-amlcft-regime

5. External references from your original bibliography (not found in search results but retained for completeness):

   • The Times – “Thousands more families set up trusts to swerve inheritance tax”

   • MoneyWeek – “Family trust mis‑selling warnings”

   • MoneyWeek – “Inheritance tax receipts rise to £6.6bn”

   • GOV.UK – Trusts and Inheritance Tax

   • Wikipedia – Nil‑rate band