Whether you want to give during your lifetime or leave a philanthropic legacy, a well-structured charitable trust can ensure your values live on through continued support for the charities and initiatives that matter to you.
Our experienced solicitors can guide you through every step—from structuring the trust to ensuring it complies with legal and tax requirements—so your generosity is maximised and protected.
Complete the form, and one of our solicitors will be in touch to discuss how we can support your charitable goals.
Want to speak to us now? Call us on 01332 226 162.
Charitable trust
An enduring charitable trust offers a meaningful and lasting way to make a difference through philanthropy.
When establishing a charitable trust, you retain control over how your donations are used. You can specify the amounts, timing, and conditions of your giving, whether through annual distributions or targeted support for specific initiatives. This structured approach enables smaller charities to manage donations more effectively by providing consistent, manageable funding.
Charitable trusts also offer a tax-efficient means of supporting your chosen causes while ensuring that funds are distributed in line with your intentions. By placing money, property, or other assets into the trust, you create a reliable income stream that benefits your preferred charities both now and in the future. Once assets are transferred, they become irrevocable, creating a lasting legacy managed by trustees who are legally bound to honour your wishes.
We establish and manage charitable trusts that align with your goals, offering tailored advice and designing donation structures that maximise impact. As professional trustees, we can also oversee the trust’s administration and provide ongoing support for your chosen causes, should you require this service.
Charitable trust
Not all trusts are created equal—each type is designed with a specific purpose in mind and offers unique advantages and limitations. Understanding these distinctions is crucial to selecting the right trust structure that aligns with your personal goals and circumstances.
Some trusts may provide enhanced control over assets, while others focus on tax efficiency or protecting the interests of beneficiaries.
The table below summarises the key benefits and limitations of charitable trusts compared to other common trusts, helping you make an informed decision about which option best meets your needs.
| Benefits | Limitations |
|---|---|
| Long-term impact: An enduring charitable trust creates a legacy by supporting meaningful causes beyond your lifetime. | Irrevocability: Once assets are transferred, they cannot be reclaimed by you or your beneficiaries, so careful planning is essential. |
| Tax advantages: Charitable trusts offer significant tax relief, including exemption from Inheritance Tax (IHT) and, in some cases, qualification for a reduced IHT rate across your estate. | Complex setup and management: Setting up and running a charitable trust involves legal, financial, and compliance responsibilities. Our team can support you throughout. |
| Controlled giving: You can dictate how, when, and to whom donations are distributed, ensuring your intentions are followed precisely. | Limited use for property planning: If your main objective is to manage the future of high-value property assets such as passing on a family home, a property trust will may be more appropriate. |
| Professional management: Trustees can oversee the fund on your behalf, ensuring donations are managed responsibly and in line with the trust’s objectives. | Less suitable for vulnerable beneficiaries: Those looking to provide long-term financial protection for a disabled family member may benefit more from a disabled person’s trust, which is designed with specific tax and asset protection advantages for individuals with disabilities. |
| Public benefit: Charitable trusts are designed to deliver ongoing benefits to society, aligning your estate planning with broader community support. | Lower flexibility for mixed-beneficiary planning: If you want to benefit both charitable causes and family members within the same structure, a discretionary trust may offer more flexibility than a charitable trust. |
Frequently Asked Questions
Yes, you can choose which charities receive donations from your enduring charitable trust. You may also set conditions on how and when the funds are used.
Donations made to a charitable trust are exempt from Inheritance Tax (IHT). In certain cases, your remaining estate may also qualify for a reduced IHT rate.
Yes, you can create both types of trusts. A charitable trust supports public causes, while a standard trust manages personal or family assets.
No, setting up a charitable trust will not prevent your family from receiving an inheritance. You can use other estate planning tools alongside it.
No, an enduring charitable trust is generally irrevocable. Once you transfer assets into the trust, they remain for public benefit and cannot be reclaimed.
Services
Knowledge
Contact Us
If you would like to speak to a member of our team, please fill out the form, and we will be in touch.
On Monday 29 September, Flint Bishop successfully completed the acquisition of the entire business of Lupton Fawcett LLP. You have been forwarded to the page most relevant to your visit.
Please feel free to explore our website and learn more about our legal services and professionals, including those who have recently joined us from Lupton Fawcett.