Imagine you’ve owned your family home for years. You want to make sure it’s passed on smoothly to your children. Without delays, legal complications, or unnecessary costs. You’ve heard that setting up a trust might help, but you’re not quite sure how it works or where to start.
Many people in this position ask the same question: how to transfer property into a trust. It’s a common step in estate planning that can protect your assets, help manage inheritance, and provide more control over how property is handled during your lifetime and after death.
In this guide, we’ll explain: what a property trust is, why you might use one, and walk you through the full process step by step. Whether you’re planning for the future or looking to protect your estate, this article will give you the clarity and confidence to take informed next steps.
A property trust is a legal arrangement that allows one or more people, called trustees, to hold and manage property for the benefit of others, known as beneficiaries. The person who sets up the trust is known as the settlor.
Instead of owning the property in your own name, you transfer it into a trust, and the trust deed sets out how it should be used or passed on. This gives you greater control over how the property is handled now and in the future.
Property trusts are often used for inheritance planning, protecting family homes, or ensuring long-term care for loved ones. There are several types of trusts, each offering different benefits depending on your goals.
In a discretionary trust, the trustees have the power to decide how and when to distribute property or income to the beneficiaries. This type of trust offers flexibility, making it useful for situations where circumstances may change — for example, if you're leaving property to children who are still growing up or to beneficiaries with uncertain financial needs.
A lifetime trust is set up while the settlor is still alive and takes effect immediately. Also known as a living trust, it allows the property to be managed according to your instructions from the moment it's transferred into the trust. This can help with planning ahead for later life, especially if you want to retain control while making arrangements in advance.
In a bare trust, the beneficiary has the absolute right to the property held in the trust. The trustee’s role is purely administrative. This type of trust is often used to hold property for minors until they reach adulthood, or when the goal is to pass on property with no conditions or restrictions.
There are many reasons for putting property into a trust, and most centre around gaining greater control over how your property is handled — both now and in the future. For many people, trusts offer peace of mind by protecting assets and simplifying succession planning.
Placing your property in a trust can help protect it from future legal claims. For example, if you later face financial difficulties, disputes, or divorce proceedings, property held in a trust may be more secure than if it remained in your name. While not a guarantee against all risks, this approach can provide a stronger line of defence for your estate.
Transferring property into a trust can make inheritance planning more efficient. It allows you to outline exactly how and when your property should pass to beneficiaries. Unlike a will, which becomes active only after death and must go through probate, a trust can be used to avoid delays and reduce the administrative burden on your family.
For example, if you want to leave your home to your children but ensure your spouse can continue living there during their lifetime, a trust makes that possible.
Some beneficiaries may need more support than others. This could include minors, individuals with disabilities, or family members who are not financially responsible. A trust allows you to tailor the way they receive property — for example, in stages or with limits on how it's used — without disinheriting them altogether.
Using a lifetime trust, you can remain involved in decisions while still passing legal ownership to the trust. This is helpful if you want to plan ahead without giving up control too soon. It also ensures that your property is managed in a way that reflects your wishes, even if your circumstances change.
The process of transferring property into a trust involves several legal steps. Each stage must be completed carefully to ensure the trust is valid and aligns with the legal conveyancing process.
Before doing anything, speak to a solicitor with experience in trusts and property. A trust is a legally binding arrangement, and the terms must be drafted precisely to protect your assets and meet your personal or family goals.
Every trust is different, so getting legal advice for property trust transfer is essential. A solicitor can help you understand the implications of your decision, suggest the right type of trust, and prepare the necessary documents.
TBI Solicitors offers tailored advice to guide you through the process clearly and confidently.
Next, you’ll need to create a trust deed. This document sets out the full terms of the trust, including:
For the trust to be legally valid, the deed must comply with legal standards. Once signed, it acts as the official record of the trust deed property transfer and governs how the property will be managed.
Once the trust is set up, the next step is to legally transfer the property into it. This involves:
Although the trustees now legally hold the property, they do so on behalf of the beneficiaries according to the trust deed. It’s important to complete this process accurately, as any errors can cause delays or legal complications later.
Some trusts must be registered with the Trust Registration Service (TRS). You’ll usually need to register if the trust:
Registering a trust in the UK is an HMRC requirement and may involve additional property searches and registration timelines. Our solicitors will advise whether registration is needed and help ensure the trust is reported correctly and on time.
When transferring property to a trust in the UK, it’s important to understand the tax position. You may need to pay:
Because tax rules can be complex and change regularly, we recommend seeking both legal and financial advice. Understanding the implications upfront helps you avoid unexpected costs and ensures the transfer is carried out efficiently.
Whether you're creating a lifetime trust or planning for future generations, taking the right steps at the outset makes the process smoother and more secure.
Costs of Transferring Property into a Trust
The costs of transferring property into a trust can vary depending on the complexity of the arrangement and the value of the property. It’s important to understand what to expect so you can plan ahead and avoid surprises.
You’ll need a solicitor to prepare the trust deed, manage the legal paperwork, and handle the property transfer. For straightforward cases, property trust legal fees may range from £750 to £2,000+, depending on how detailed the trust needs to be and whether any additional legal advice is required (e.g. inheritance tax planning or reviewing property title issues).
More complex trusts, such as discretionary or tax-sensitive arrangements, often require more time and expertise, which increases the cost.
If you're transferring legal ownership to the trust, you’ll need to pay HM Land Registry fees. These are based on the value of the property and whether the title is registered electronically. As a rough guide:
Check the Land Registry fee scale or ask your solicitor for an exact figure.
Stamp Duty Land Tax (SDLT)
If there’s no outstanding mortgage or payment involved, no SDLT is usually due. However, if the trust takes on a mortgage, or if the transfer involves any financial consideration, Stamp Duty Land Tax may apply.
This is calculated in the same way as a standard property transfer. SDLT thresholds and rates vary across England and Wales. Our conveyancing solicitors can confirm if it applies in your case. Our team can also help you to understand how to claim back stamp duty.
Depending on the trust structure, there may also be ongoing administrative costs. These could include:
Not all trusts require ongoing costs, but it's worth budgeting a few hundred pounds per year if ongoing support is needed.
While placing property into a trust can offer valuable benefits, it’s important to understand the potential downsides. These trust property risks don’t mean trusts should be avoided — but they do highlight the need for careful planning and professional advice.
Trust law and tax regulations can change over time. What’s considered tax-efficient today may become less favourable in the future. For example, inheritance tax rules or reporting obligations for trusts may be updated, affecting the trust’s long-term value or how it must be managed.
This uncertainty doesn’t mean you shouldn’t use a trust — but you should stay informed and review your arrangements regularly with a solicitor.
Once the property is transferred into a trust, you no longer own it in your personal name. That can limit what you’re allowed to do with it.
For example, if you're both the settlor and a trustee, you must act in line with the trust deed and in the best interests of the beneficiaries. You may not be able to sell, remortgage, or use the property freely without following legal steps. This loss of control can be a surprise if not fully understood at the start.
Poorly drafted trusts can lead to disagreements about how property is used or distributed. If the trust deed isn’t clear, trustees may interpret their powers differently, or beneficiaries may dispute who should benefit and when.
These trust disputes can create delays, additional legal costs, or strain between family members. That’s why it’s essential to have a solicitor carefully draft the trust deed and explain its terms clearly to everyone involved.
There’s no one-size-fits-all solution when it comes to trusts. Understanding the trust property risks in advance helps you avoid problems later. With the right legal guidance from TBI Conveyancing Solicitors, most of these risks can be managed or avoided entirely. We make it our mission to give you peace of mind, that your property is protected
What is the process of transferring property into a trust?
To transfer property into a trust, you must create a trust deed, complete a TR1 transfer form, and register the change with HM Land Registry. Depending on the trust type, you may also need to register the trust with HMRC’s Trust Registration Service. Legal advice is essential at every step to ensure the process is valid and compliant.
Stamp Duty Land Tax (SDLT) may apply if the transfer involves a mortgage or any financial consideration. If the property is gifted outright and no debt is involved, SDLT is usually not payable. Each case should be reviewed by a solicitor for clarity.
A trust deed is a legal document that sets out the terms of a property trust. It names the settlor, trustees, and beneficiaries, outlines the powers of the trustees, and defines how the property should be managed or distributed. It is essential for a valid trust property transfer.
A trustee holds and manages the property on behalf of the beneficiaries according to the terms set in the trust deed. Trustees have a legal duty to act in the best interests of the beneficiaries and must follow the rules of the trust without personal gain.
Costs typically include legal fees (£750–£2,000+), Land Registry fees (£80–£500), and possible SDLT. There may also be ongoing trustee or administrative costs, depending on the complexity of the trust.
Any UK trust holding property or assets must register with the Trust Registration Service (TRS) if it has tax liabilities or was created after 2017 and isn't excluded. Most property trusts must now be registered unless they qualify for limited exemptions.
Risks include reduced control over the property, potential changes in tax law, and disputes between trustees or beneficiaries if the trust is poorly drafted. Legal advice helps reduce these risks.
Yes, you can live in a property held in trust, depending on the terms of the trust deed. However, you must follow the legal structure. For example, as a life tenant or occupant with the trustees’ permission. Always seek legal advice before relying on trust-held property for residence.
Understanding how to transfer property into a trust is an important step for anyone looking to protect assets, plan for inheritance, or support vulnerable beneficiaries. A well-structured trust can help you manage your estate during your lifetime and beyond. It offers you greater control and reducing the burden on loved ones.
We’ve explained what a property trust is, why you might consider one, and the steps involved. From obtaining legal advice and drafting a trust deed, to transferring ownership and considering tax implications. We’ve also covered costs, potential risks, and how to make sure your trust complies with legal and tax obligations.
While the process involves several stages, with the right guidance it can be straightforward and highly effective. Every person’s situation is different, so tailored advice is essential.
If you're thinking about putting property into a trust, speak to TBI’s specialist trust solicitors for clear, experienced support. We’re here to help you make confident, informed decisions that protect your future and the people you care about. You can pay us a visit at: Hartlepool, Stockton, Wynyard, Barnard Castle or Sunderland. Or you can arrange for a member of our team to call you
