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Introduction

Trusts are not confined to lifetime arrangements. A trust can arise on death under the terms of a Will. It is much more common, in fact, for people to have a trust in their Will than make a trust in their lifetime.

A client making his Will (known as the ‘testator’ in the case of a man and ‘testatrix’ in the case of a woman) needs to think firstly about who his beneficiaries are to be. Next, the testator must choose between making outright gifts and leaving his property in trust.

Trusts are much more flexible than outright gifts. This flexibility can be especially useful in a Will given that it does not usually take effect straight away and might not come into effect for many years. The testator cannot anticipate precisely what his family and financial circumstances will be at the time of his death. Similarly, the future financial and personal position of the beneficiaries is uncertain at the time the Will is made.

A trust (in its most flexible