In Trust – September 2026

As the Government prepares for its Autumn Budget on 28 October 2026, renewed attention is being given to how the UK’s public finances can be supported in the years ahead. Whether that results in changes to taxation, new levies or other fiscal measures remains to be seen. Recent political and media debate has explored a range of possibilities and will continue to do so in the leadup to the Budget speech.

One area where change is already being considered is the law relating to cohabiting couples. Wedlake Bell recently responded to the Government’s consultation on cohabitation reform, welcoming the opportunity to improve legal protections for couples who choose not to marry or enter into a civil partnership. It should be noted, however, that the proposed reforms do not include extending the tax exemptions and reliefs that married couples and civil partners currently benefit from, to cohabitants; and it will be important for cohabiting couples not to assume that wider legal reform will place them on an equal footing in this sense. As the proposals develop, those affected should pay close attention to the detail, including how the proposed opt-out provisions may operate in practice.

Change inevitably creates questions, but it can also create opportunities to step back and reassess what matters most. In this edition of In Trust, we explore some of the key developments currently shaping the private client landscape and, as always, your Wedlake Bell adviser is on hand to help you navigate them with confidence including any planning you may wish to discuss in advance of the Autumn Budget.

We hope you enjoy this edition of In Trust and, if any topic raises a question, please contact your usual Wedlake Bell adviser.

In this issue…

  • Wealth & Values — effective wealth planning goes beyond preserving capital. It reflects our priorities, the causes we care about and the legacy we hope to leave behind. Our Wealth & Values series examines how investment decisions, cultural traditions, and philanthropic considerations influence how wealth is protected, enjoyed and valued. 

  • Getting your house in order: a private client checklist for the new term — with summer now drawing to a close, September provides a natural opportunity to review your personal and financial affairs. From pensions and gifting to Wills, LPAs and succession planning, a few simple checks now can provide valuable peace of mind for the future.

  • Has your charitable legacy been future-proofed? Donor Advised Funds and giving through your Will — recent changes to the inheritance tax treatment of charitable gifts mean that whilst outright gifts to qualifying UK charities continue to benefit from 100% IHT relief, gifts made to executors or trustees for “general charitable purposes” no longer automatically qualify. We explore how donor-advised funds can provide a flexible, tax-efficient way to create a lasting charitable legacy.

  • The missing piece of most estate plans: Lasting Powers of Attorney — many people carefully plan for what happens to their assets after death, but give less thought to who would make decisions during their lifetime if they were no longer able to do so themselves. Taking steps now can help ensure your wishes are respected when it matters most.

  • The Contractual Controls Register: what landowners, estates and charities need to know — development arrangements that have traditionally remained private may soon become far more transparent. With new reporting requirements due to take effect from April 2027, now is a sensible time to review existing agreements and future transaction processes.

In the press…

  • Hugo Smith has been quoted in a recent The Telegraph article exploring the little-known “chain of representation” rule and how it can result in individuals becoming executors of estates belonging to people they have never met. Read more here.

  • Alex Davies shares his insights in The i Paper, discussing the importance of avoiding unnecessary divorce court proceedings and taking a balanced approach to resolving financial matters. Read more here.

Has your charitable legacy been future-proofed? Donor-Advised Funds and giving through your Will

Is your charitable legacy still fit for purpose?

Many people include charitable gifts in their Wills to support causes that matter to them. However, recent changes to the inheritance tax (IHT) charity exemption mean that some gifts in Wills may no longer achieve the intended tax treatment.

The Finance Act 2026 narrowed the scope of the IHT charity exemption with effect from 6 April 2026. Whilst outright gifts to qualifying UK charities continue to benefit from 100% IHT relief, gifts made to executors/trustees to be applied for “general charitable purposes” no longer qualify.

In the light of this, individuals may wish to consider a flexible vehicle, such as a donor advised fund (DAF), to help future-proof their charitable giving.

What is a donor-advised fund?

A DAF offers a middle ground between making direct gifts to individual charities and establishing a separate charitable structure.

A donor opens an account with a DAF provider, which is itself a registered charity and therefore the IHT charity exemption applies to gifts to it, and contributes funds either during their lifetime or on death. The provider then administers the fund and is responsible for its ongoing governance and reporting. 

Importantly, the donor can provide recommendations as to how the fund should be invested and which charitable causes should benefit over time. However, ultimate control rests with the DAF provider in its capacity as charity trustee. 

The concept originated in the United States, where DAFs have been widely used for many years. The UK market has grown significantly in recent years, with a range of providers now available. Some providers offer structures that can facilitate both UK and US charitable giving, which may be particularly attractive for internationally mobile families or individuals with cross-border tax exposure.

Why consider a DAF in your Will? 

You may know that you want to support charitable causes without yet knowing which organisations should benefit in the future. Rather than leaving fixed legacies to named charities, your Will could direct funds to a DAF. Those whom you nominate may then help to continue your philanthropic vision by recommending to the DAF provider grants to charities that reflect your wishes and the needs existing at the time. 

A flexible and enduring legacy 

Many DAF providers allow donors to create a named fund, establish investment strategies and provide detailed guidance regarding their charitable priorities. Subject to the provider’s terms and policies, the funds may remain invested after the donor’s death and grants may be made over many years, creating an enduring charitable legacy rather than a one-off gift, if desired.

DAFs can also offer families an opportunity to involve future generations in philanthropy without taking on the administration associated with running a separate charitable structure. This enables the family to focus on charitable impact rather than administration.

Is a DAF right for you? 

If you are reviewing your Will following the recent IHT changes, it may be worth considering whether a DAF would provide a flexible and future-proofed structure for your charitable giving. A DAF will not be suitable in every case, and providers differ in their fees, investment options, grant-making policies and arrangements for involving family members. 

If your Will contains charitable gifts, particularly gifts for general charitable purposes, now is an appropriate time to review those provisions. Taking advice ensures that your charitable objectives are met in a tax-efficient way.

How we can help

Our Private Client team can help you assess whether your existing Will remains fit for purpose, advise on the implications of the recent IHT changes and explore whether a donor-advised fund is a suitable structure for your philanthropy. By reviewing your arrangements now, you can help ensure that your charitable intentions are carried out in the most effective and tax-efficient way. For further information please contact your usual Wedlake Bell adviser, or a member of our Private Client team.

The missing piece of most estate plans: Lasting Powers of Attorney

A Lasting Power of Attorney (LPA) is a legal document that allows a person, known as the Donor, to appoint one or more trusted individuals, known as Attorneys, to make decisions on their behalf. These may concern property and finances, or health and welfare, depending on the LPA.

Mental capacity is central to the validity of an LPA. Under section 2 of the Mental Capacity Act 2005, a person lacks capacity in relation to a matter if, at the material time, they are unable to make a decision for themselves because of an impairment of, or disturbance in the functioning of, the mind or brain.

For that reason, it is important to put an LPA in place before there is any question about mental capacity. Leaving it until concerns have already arisen can create practical difficulties and may also increase the risk of the LPA being challenged at a later date, particularly where the point at which mental capacity became doubtful is unclear. LPAs can be prepared and registered long before they are needed.

Addressing possible challenges

Challenges to an LPA may arise for a number of reasons. These can include allegations that the Donor lacked mental capacity when the document was signed, or that they were placed under undue influence by a family member or carer.

Where there is any possible doubt about mental capacity at the time an LPA is made, it is sensible to obtain a mental capacity assessment from a suitably qualified medical practitioner. This can provide an important additional layer of protection, helping to reduce the scope for later allegations and potentially costly disputes. It may also assist Attorneys if their decisions are subsequently scrutinised.

A mental capacity assessment may be particularly important where the Donor is elderly, where there are complex family dynamics, or where there is an existing diagnosis of dementia or Alzheimer’s disease. Such a diagnosis does not automatically mean that a person lacks mental capacity, but it can make questions about mental capacity more likely to arise.

There can also be wider consequences. If an LPA and a Will are executed at around the same time, and the LPA is later disputed on the basis of mental capacity, questions may also be raised about whether the person had testamentary capacity when making their Will. Taking advice early, and putting appropriate evidence in place, can therefore help protect not only lifetime decision-making arrangements, but also the wider estate plan.

Losing mental capacity with no LPA

Planning for a possible loss of mental capacity is not solely an issue for later life. Serious illness or injury can affect anyone, at any age. LPAs should be a central part of everyone’s lifetime planning, helping individuals retain control over who will make decisions on their behalf and avoiding the need for costly and time-consuming Court of Protection applications. If there is no valid LPA in place when an individual loses mental capacity, a relative or other appropriate representative would need to apply to that Court for the appointment of a Deputy. The individual themselves would have no control over who that person would be.

An LPA is often described as the most important document people never get around to signing. Putting one in place can provide reassurance for you and your family, while helping to avoid uncertainty, delay and potential disputes in the future.

Getting your house in order: a private client checklist for September

Reviewing your estate planning and wider arrangements may sound like a significant undertaking, but it does not necessarily require a complete overhaul. With that in mind, our private client checklist considers five key areas to review this autumn.

Your pension arrangements

Ahead of the inheritance tax (IHT) changes for pensions due to take effect from 6 April 2027,  now is a particularly sensible time to review your pension arrangements, as from that date unused pension funds and certain death benefits may form part of your taxable estate.

Start by preparing an up-to-date list of your pension schemes as this can help you build a clearer picture and, just as importantly, make it easier for your family or advisers to locate the relevant information if needed.

You may also wish to take financial advice on whether drawing benefits or consolidating pension pots would be appropriate, bearing in mind that older policies can sometimes contain valuable benefits or guarantees that may be lost on transfer.

It is also important to check that any expression of wish or nomination forms remain up to date, reflect your current intentions and will be IHT efficient from 6 April 2027.

For further practical tips, see Relevant unused pension funds and pension death benefits will become subject to inheritance tax from 6 April 2027.

Keep track of regular gifts

Regular gifts made from surplus income may be exempt from IHT if they form part of a pattern of giving, are made from income, and do not affect your ordinary and comfortable standard of living. The exemption can be particularly useful for those who make regular contributions towards a child’s or grandchild’s living costs or education.

Record keeping is vital – the exemption is only tested by HMRC after death, so it is important to keep an annual schedule of your income, expenditure and gifts, together with a brief note of your intention to make those gifts regularly.

For further guidance, see Unlocking the power of gifts out of surplus income.

Education costs

With school and university fees placing increasing pressure on family finances, grandparents and other relatives may wish to help with education costs.

Lifetime gifts can have IHT consequences if not survived by seven years, but depending on the circumstances, exemptions may be available and the appropriate approach will depend on matters such as the amount being contributed, the age of the child and the degree of control or flexibility the family wishes to retain.

For families seeking a longer-term arrangement, an education trust may provide an IHT efficient structure through which funds can be managed and applied for a child’s benefit over several years.

For an introduction to the available options, see School fees and education trusts.

Lasting Powers of Attorneys and Wills

In some respects, Lasting Powers of Attorneys (LPAs) are more important than a Will. While a Will governs what happens to your assets after your death, LPAs are there to ensure your assets and your health can be managed for your benefit during your lifetime, if and when you are no longer able to make such decisions for yourself.

If you already have these in place, consider whether your appointed attorneys are still willing, able and suitable. Perhaps you last made LPAs when your children were young, but are they now of an age where they could, and should, act as your attorneys?

A Will should evolve as your life does. Changes in your family circumstances and asset ownership may mean that your Will no longer reflects your circumstances, making it important to review whether your choice of executors, trustees and guardians remains appropriate and whether its provisions strike the right balance between protection and flexibility for your beneficiaries.

Changes to legislation, like the revised IHT reliefs for agricultural property and business property also require Wills to be revisited.

Increasing international mobility makes it equally important to consider whether your Will and any overseas Wills work effectively alongside one another and cover the full extent of your estate.

Foreign property, changes in residence or domicile, and assets held through overseas structures may all introduce additional succession and tax considerations.

Make life easier for your loved ones

Estate planning is not only about having the right legal documents in place. A clear record of your affairs, starting with an assets and liabilities spreadsheet, can make administering your estate considerably easier for your executors.

Remember to include details of significant digital assets and online accounts, which are easily overlooked despite being an integral part of everyday life.

Where to start, and when

Many of these steps are straightforward, but the benefits of addressing them now can be significant. As autumn begins and routines settle after the summer break, it is an ideal opportunity to take proactive steps, rather than leaving this for another day.

With tax rules, succession planning considerations and family circumstances continually evolving, taking time to undertake a regular review can help ensure your affairs remain aligned with your objectives and that you are making the most of available planning opportunities. Addressing the points covered in this article can provide valuable peace of mind and help avoid unnecessary complications in the future.

If you would like advice on any of the issues discussed in this article, the Private Client team at Wedlake Bell can help you assess your current arrangements and plan confidently for the future.

The Contractual Controls Register: what landowners, estates and charities need to know

The new transparency regime for contractual rights over land is coming into effect on 6 April 2027. The Provision of Information (Contractual Control) (Registered Land) Regulations 2026 (“the Regulations”) will require information about certain agreements affecting registered land in England and Wales to be provided to HM Land Registry and some, agreements entered from 8 June 2026 may already fall within the regime.

Which contracts are caught?

The regulations target “contractual control rights”. Broadly, this will catch written arrangements which allow a party to control the future ownership or disposal of land without owning it outright. They include option agreements, conditional sale agreements, rights of pre-emption and certain land promotion agreements.

This will be particularly relevant to landowners and estates entering in to arrangements with developers or promoters over land with development potential.

Charities are also expressly within scope where the relevant right is held for the purposes of their undertaking.

Not every land agreement is caught. Exclusions include rights lasting for less than 18 months, certain security arrangements and rights held exclusively for purposes unrelated to future development. Rights relating exclusively to specified infrastructure, amenities or services under section 106 agreements are also excluded.

An individual acting privately, for example acquiring a contractual control right in their personal name with the intention of living at the property as their private residence, will generally fall outside the reporting regime. By contrast, where the right is acquired for investment, development or other commercial purposes, such as constructing a property for letting or resale at a profit, the reporting obligations are likely to apply.

Reporting obligations

The principal reporting obligation falls on the grantee, meaning the party benefiting from the contractual control right. Information must be submitted digitally to HM Land Registry through a regulated conveyancer. The information required includes the identities of the parties, the type and duration of the right, details of how it may be exercised and the land affected.

Going forward, it will be necessary to consider whether agreements need to include appropriate provisions requiring the parties to cooperate with the reporting process and provide the information required.

Key deadlines

Contractual control rights granted between 8 June 2026 and 5 April 2027 must be reported to HM Land Registry by 6 October 2027.

From 6 April 2027, new contractual control rights need to be reported within 60 days of the right being granted. Assignments and relevant written variations can also trigger a fresh 60-day reporting requirement, as can the exercise, expiry or termination of a previously reported right.

The register is intended to become publicly available after 6 April 2028, with HM Land Registry required to update the published dataset at least monthly.

Why does this matter?

The requirement for greater transparency may have commercial consequences. Development arrangements which were previously private may become more visible to neighbouring owners, prospective purchasers and other developers. This may affect how landowners, developers and promoters approach negotiations and plan future development opportunities.

Compliance also matters. Failure to provide required information, or knowingly or recklessly providing false or misleading information could constitute a criminal offence.

Landowners, estates and charities should therefore start identifying relevant agreements entered into from 8 June 2026, review procedures for future transactions and ensure that reporting requirements are considered whenever qualifying rights are granted, assigned or brought to an end.

For further information please contact your usual Wedlake Bell adviser.

Wealth and philanthropy: the role of giving in family wealth planning

For many high-net-worth individuals, philanthropy is increasingly becoming an integral part of wealth planning.  Families are looking beyond tax mitigation and one-off donations, and moving towards a more strategic approach, to consider how their family values align with their charitable objectives, and creating structures to support giving over many years through generations of the family. We are noticing more consideration being given to not simply how much clients should give, but how they can give more effectively and create a lasting impact.

Charitable foundations can be used by families not only as an effective tax planning tool, but as a way to engage younger family members is decision making and wealth stewardship.

Philanthropy as a tool for family cohesion

Many people are already aware of the tax advantages that giving to charity can have both during your lifetime and also on death; for example, any assets left to a UK registered charity will qualify for 100% IHT relief. 

However, in addition to this, a family foundation can be used to involve younger family members in wealth stewardship and financial investment before they are required to make broader financial decisions in relation to family wealth and their own inheritance. It can also present opportunities for younger family members to prove that they can carry heavy responsibility and decision making in this context, for example acting as a trustee of a charity.  At the same time, it offers an opportunity for senior family members to share the principles and values that underpin their approach to wealth management. Discussions surrounding charitable priorities can often be less contentious than discussions focused solely on private wealth.  

Philanthropy can be used as a tool to bring family members together around a common objective, presenting opportunities to strengthen relationships between generations and create a long-lasting legacy for the family. 

Charitable family foundations

An important aspect of establishing a charitable family foundation is choosing the most appropriate structure, as this affects how the charity will operate, such as whether it can enter into contracts in its own name and whether the trustees will be personally liable for what the charity does. The most common structures for a charity are:

  1. a charitable trust;
  2. a charitable company; and
  3. a charitable incorporated organisation (CIO).

Charitable trusts are generally the oldest type of charitable structure, often associated with grant making and set up under a Will. A charitable trust is not a legal entity in its own right and business is therefore conducted in the name of the trustees, who can then be held personally liable for any debts or obligations under contracts. 

A charitable company is a private limited company registered under the Companies Act 2006 that fulfils the essential criteria for charitable status. Charitable companies are usually limited by guarantee and not shares. Assets can only be applied towards carrying out the charitable purposes.

A CIO, which is the most recent form of charitable structure, has been specifically designed by the Charity Commission for the charity sector. A CIO is similar in nature to a charitable company, as it has its own legal identity, but CIOs are not subject to regulation under company law, only the Charity Commission.

Charitable companies and CIOs can be suited to family foundations for a number of reasons:

  • continuity – when the charity trustees change, it is not necessary to transfer land or any other property or liabilities from the outgoing directors to the new and continuing directors, like it would with a charitable trust;
  • governance – charitable companies and CIOs can have a two-tier structure, with a body of members separate from its trustees. This can allow family members who perhaps were initially involved in the establishment of the charity to take a step away from taking day to day decisions running the charity, but still have a role in the governance of the charity and can hold the next generation of trustees accountable.
  • limited liability – unlike charitable trusts, charitable companies and CIOs are corporate bodies, meaning that they can own assets, hold property, enter into contracts and other obligations, and can sue and be sued in their own corporate name, meaning trustees have the advantage of limited liability; and
  • work beyond grant making – whilst grant making might still be a large part of the work required by a family foundation, given that there has been a move towards families considering how best they can make an impact, the use of a CIO or charitable company provides greater scope and ease in carrying out the foundation’s objects; for example, entering into funding arrangements, employing staff, or entering into other contractual agreements in the name of the charity.

Donor Advised Funds (DAFs)

Whilst charitable foundations offer huge flexibility for family philanthropy, DAFs are also becoming increasingly popular. A DAF is a charitable giving vehicle administered by a charity or charitable sponsor into which a donor gifts funds (either during lifetime or through their Will) with recommendations on how these are invested and which charities should receive grants. A DAF is a good way of making charitable grants where donors know how much they wish to donate to charity on their death and want to benefit from the IHT relief but have not yet established which charities to support or they wish to recommend grants over a period of time.  DAFs can also be used to facilitate overseas donations and receive a tax benefit on the donation which would not otherwise be possible when making a donation directly to an overseas charity.

Conclusion

As wealth planning continues to evolve, philanthropy is likely to play an increasingly prominent role in conversations between families and their advisers.  Philanthropy can be used to achieve more than tax mitigation; it can support long term succession planning and strengthen family cohesion.

Our Private Client and Charities teams work closely with individuals and families to establish and manage philanthropic structures that reflect objectives, support effective governance and maximise long-term impact. Should you wish to explore how philanthropy can contribute to your wealth and legacy planning strategy, please contact Kate Johnson, Emily Minett or your usual Wedlake Bell adviser.

Wealth and possessions: the stories we keep and the legacies we leave

The stories our possessions tell

We spend our lives accumulating possessions. Some are practical, some beautiful, some carry memories. They all tell stories about our lives.  A favourite painting may remind us of a particular place or moment; a piece of furniture may have passed through several generations; and even everyday objects can carry powerful emotional associations. Whether they are family keepsakes, an heirloom collection, or simply the accumulated belongings of everyday life, our possessions are part of our identity.

The problem starts when objects accumulate unchecked, or when they start to take on undue weight in our lives. The meaningful sits beside the mundane. Cupboards fill, paperwork grows, decisions are postponed. We keep things because the prospect of sorting them out feels too daunting or we persuade ourselves they will be useful one day.

The gradual build-up of possessions can become a source of unease, not least because we know that the responsibility for dealing will them will fall to our loved ones one day.  Not only will they be faced with the decluttering we have postponed, they will be exposed to everything we have held onto, from personal letters to diaries we would not have chosen to share. 

Clutter can be charming when it is intentional, but a disordered home is not peaceful. Objects packed into cupboards and hidden from view can feel oppressive, while a tidy and organised space offers reassurance and control.  It is liberating to know what we own, where it is, and why we are keeping it.

Stewardship, not just ownership

This becomes more important as we grow older. Collections and possessions that once represented enjoyment can come to feel burdensome. Valuable items must be maintained, insured and documented. Family heirlooms require decisions about their future. Questions about inheritance, gifts and disposals can become increasingly significant.

Rather than avoiding these issues, addressing them early can simplify life enormously.

The legal responsibility for dealing with our belongings rests with the personal representatives (usually known as “executors”) of the estate, but family members are often closely involved. This can be emotionally demanding and, in some cases, a source of disagreement. Objects with little financial value can hold immense sentimental importance.

Advance planning makes all the difference. Thoughtful stewardship goes beyond ownership: it includes maintaining records of significant possessions, identifying valuable items, and making – and communicating – clear decisions about their future. It can be invaluable to record the stories behind important possessions such as photographs in family albums, preserving memories that might otherwise be lost.

Curating a kinder legacy

It can also be helpful to reduce the volume of our belongings during our lifetime. This is not about abandoning cherished possessions or embracing minimalism for its own sake. It is about deciding what genuinely matters, considering what we’ll be asking of our heirs, and curating our legacy.

Letting go should be a positive process. We can give possessions to family members in our lifetime, donate them to charities, offer them to museums, or sell them to new owners who will appreciate them. Each decision will have its own emotional and practical effect – including tax consequences – which can be clarified with professional help.  For collectors in particular, planning the future of a collection allows them to shape its next chapter rather than leaving difficult decisions to others.

The result will be a greater sense of freedom. Homes become easier to manage, important objects receive the attention they deserve, and family members gain certainty about the future.

Ultimately, a tidy home is not measured by how few possessions we own, but by how thoughtfully we manage them. By understanding our relationship with our belongings, making thoughtful decisions about their future, and keeping our affairs organised, we create more space for what matters most.

In doing so, we gain clarity for ourselves and leave a kinder, more manageable legacy for the people we love.

The art of keeping, giving and letting go

Whether you are considering lifetime gifts, planning for the future of a collection, documenting important assets or navigating the practicalities of inheritance, taking advice early can help avoid uncertainty and ease the burden on future generations.

At Wedlake Bell, our Private Client Group work closely with individuals and families to help them make informed decisions about their assets and legacy. We can advise on the legal, tax and practical considerations surrounding valuable possessions, collections and family heirlooms, ensuring that what is important to you is protected, preserved and passed on in accordance with your wishes.

Wealth and values: investing beyond financial return

While trustees of private trusts remain primarily focused on achieving appropriate financial returns for beneficiaries, many are now being asked to consider how trust investments align with family values, responsible stewardship and broader long-term objectives.

Why this matters 

The private wealth landscape is changing. Families often span multiple generations and jurisdictions, while younger beneficiaries are taking a more active interest in how wealth is managed. As a result, trustees, particularly professional trustees who are not themselves beneficiaries, increasingly find themselves balancing financial objectives with wider considerations relating to sustainability, responsible stewardship and family values, while ensuring that their decisions remain consistent with their fiduciary duties and capable of withstanding beneficiary scrutiny. The ongoing transfer of wealth between generations is likely to accelerate this trend as younger family members bring different perspectives to investment and stewardship. 

The blurring of philanthropy and investment 

One of the most significant developments in recent years has been the rise of responsible and impact investing. Families increasingly seek to generate financial returns while also supporting positive social or environmental outcomes through their investment decisions. 

This can allow capital to be deployed in a manner that reflects family values without requiring a separate philanthropic structure. However, it also raises important questions for trustees. To what extent should non-financial considerations influence investment decisions? How should trustees respond where beneficiaries hold different views? How should trade-offs be managed if broader objectives affect investment performance? 

Unlike charitable trustees, whose decisions are assessed against a charity’s purposes, private trustees must principally consider the interests of beneficiaries, the terms of the trust and, where relevant, the settlor’s wishes. 

Managing potential trade-offs 

A common concern is that responsible or impact-focused investing necessarily comes at the expense of financial returns. In practice, the position is often more nuanced. 

Environmental, social and governance (“ESG”) factors are increasingly viewed as part of mainstream investment analysis and risk management. Responsible investment strategies may identify risks and opportunities that traditional financial analysis alone might overlook. However, particular strategies may underperform in some circumstances, especially over shorter investment horizons. 

Trustees should therefore avoid assumptions in either direction. They should consider whether performance outcomes arise from market conditions, implementation issues or the strategy itself, and remain alert to the risk of “greenwashing”. 

The key question is rarely whether a decision ultimately proves successful in hindsight. Rather, it is whether trustees have followed an informed and well-documented decision-making process that can be justified by reference to the trust’s objectives. 

The starting point 

In the charitable context, a sensible place to begin is the investment policy. For private trusts, trustees should review the trust deed together with any letter of wishes, family charter or similar governance document that provides guidance on family values and objectives before formulating an investment policy. These documents may help determine the extent to which non-financial considerations can properly influence investment decisions. 

The investment policy should then translate those objectives into practical guidance by identifying investment goals, any relevant restrictions or exclusions, and the framework for reviewing decisions over time.  Many trusts find that their investment policies have evolved incrementally and no longer reflect current family circumstances. Periodic review can therefore be valuable. 

Understanding responsible investment 

One challenge is terminology. Responsible investment exists on a spectrum and may include: 

    • screening – excluding particular industries or activities;
    • ESG integration – incorporating environmental, social and governance factors into investment analysis;
    • thematic investing – focusing on long-term trends and societal developments;
    • stewardship – using investor influence to encourage positive corporate behaviour and protect value; and
    • impact investing – seeking measurable social or environmental outcomes alongside financial returns. 

Trustees do not need to become experts in every approach. What matters is developing a clear understanding of the trust’s objectives and ensuring advisers understand the outcomes being sought. 

Governance and beneficiary engagement 

Responsible investment often prompts discussion about whose views should be taken into account. While trustees remain responsible for decision-making, engagement with settlors, beneficiaries, family councils and family office representatives can be valuable. 

This is particularly so where different branches of a family hold different views regarding stewardship and wealth. Open communication can help manage expectations and reduce the potential for future disputes. 

Good governance remains essential. Trustees should maintain appropriate records, document their reasoning and ensure that significant decisions are capable of explanation. In some circumstances, separate sub-funds or investment pools may assist where beneficiary groups have materially different investment philosophies. 

Emerging legal developments 

Some jurisdictions are beginning to address responsible investment more explicitly. Bermuda has amended its trust legislation to permit trustees to take account of wider social and environmental wishes, while a number of US states have introduced legislation recognising the ability of trustees to consider beneficiary values alongside traditional prudent investor principles. 

Elsewhere, the position continues to be governed largely by existing trust law principles. Regardless of jurisdiction, trustee judgement, careful governance and clear documentation remain critical. 

Conclusion 

Families increasingly want trustees to consider not only financial performance but also stewardship, sustainability and longer-term impact. For private trusts, however, the starting point remains the pursuit of appropriate financial outcomes for beneficiaries. 

The challenge is therefore not to replace financial return with responsible stewardship, but to determine how wider family values can properly be accommodated within a trustee’s existing fiduciary framework. With appropriate drafting, clear investment policies and robust governance, trustees can ensure that trust assets are managed in a way that is both financially prudent and aligned with the family’s long-term objectives. 

In Trust – July 2026

With the Prime Ministerial leadership contest drawing to a close and a new Prime Minister preparing to take up residence in Number 10, attention inevitably turns to what comes next. New leaders are often keen to make their mark, bringing fresh priorities and policy proposals. While we may need to wait until the Autumn Budget to see the full direction of travel, periods of political transition are a useful reminder of the importance of keeping personal, financial and succession plans under review.

This edition of In Trust explores three areas where change is already on the horizon: cohabitation reform, inheritance tax on pensions and the proposed high-value residential property surcharge, often referred to as a “mansion tax”. Whether these measures survive intact under the new administration remains to be seen. With a new Prime Minister and Cabinet taking shape, further reform is likely to follow.

Alongside these policy developments, we also explore broader issues affecting individuals, families and trustees, from purpose-driven investing and the continuing legacy of the Windrush generation to the growing challenge of protecting identity in an age of deepfakes and AI.

We hope you enjoy this edition of In Trust and, if any topic raises a question, please contact your usual Wedlake Bell adviser.

In this issue…

In the press…

  • STEP have renewed Wedlake Bell’s Platinum Employer Partner accreditation under the STEP Employer Partnership Programme. We were commended on our strong learning culture, commitment to professional development at all levels, and the tailored training and development opportunities available to our people. Read more here.

  • Victoria Mahon has been quoted in eprivateclient discussing the growing importance of professional philanthropy advice and how advisers and philanthropic platforms are helping donors make informed giving decisions, while increasing transparency and accountability for charitable organisations. Read more here.

  • Camilla Wallace recently joined Mary Rose Gunn, founder and CEO of The Fore, on the latest episode of the Brace For Impact podcast to discuss philanthropy, tax and the future of charitable giving. Read more here.

  • New Law Journal featured Ann Stanyer’s article on the growing number of Court of Protection disputes concerning family visits in care settings. Read more here.

A fairer end to relationships: proposed reforms to divorce law and the law for cohabitants

Reforming financial remedies on divorce

The current law on financial remedies is now over fifty years old and drafted when societal understanding and expectations of marriage were very different. The legislation has been supplemented by case law which have established guiding principles of interpretation. While this has allowed flexibility, it has also resulted in a system characterised by broad judicial discretion and limited predictability.

The Consultation proposes a “codification‑plus” model, which would bring established principles into statute while introducing targeted reforms where needed. The objective is not to replace discretion entirely, but to make outcomes more accessible and foreseeable for divorcing couples.

Fairness through needs and sharing

The Consultation proposes that fairness should be achieved explicitly through the dual principles of:

  • sharing – as a starting point for dividing matrimonial property; and
  • needs – where equal division is insufficient.

Under this model, the presumption would be that matrimonial assets should be shared equally, unless required to meet needs. This reflects established case law but is not yet articulated in legislation.

Notably, the government is not proposing to elevate “compensation”, the third (but rarely seen in practice) element of financial division, citing its uncertain status and risk of increased litigation.

Clarifying property: defining the boundaries

The Consultation also proposes statutory definitions of matrimonial and non‑matrimonial property.

This is a significant development. At present, the classification of assets — particularly inherited or pre‑acquired wealth — can be contentious and unpredictable. Codification would provide clearer guidance, while still allowing non‑matrimonial assets to become subject to sharing over time (“matrimonialisation”).

A three‑stage approach to needs

The Consultation seeks to bring structure to financial “needs” and proposes a three‑stage hierarchy:

  1. children’s welfare first;
  2. core financial needs (housing, income and pensions); and
  3. discretionary needs (where resources permit).

This approach reflects existing practice but introduces a clearer analytical framework. In particular, it distinguishes between essential needs and lifestyle‑based claims.

Qualifying nuptial agreements

Another key proposal is the introduction of binding qualifying nuptial agreements. These would allow couples to determine financial outcomes in advance, subject to safeguards such as full disclosure and independent legal advice.

Crucially, such agreements would not permit parties to contract out of meeting “needs”, but they would significantly increase autonomy and reduce the scope for contested proceedings.

Domestic abuse and financial outcomes

The Consultation also addresses whether domestic abuse — particularly economic abuse — should play a greater role in financial determinations. Current law sets a high threshold for “conduct”, meaning such factors rarely influence outcomes.

Reforming the law for cohabitants on separation

In contrast to divorce, the law governing cohabitants on separation remains fragmented and inadequate.

Given the 156% rise in cohabitating couples since 1996, it is now a major feature of modern family life, with 51% of children now born to cohabiting couples. The Consultation proposes a new statutory framework to provide targeted protections.

Scope and eligibility

The proposed regime would apply to individuals in “enduring family relationships”, subject to defined criteria:

  • a minimum of three years’ cohabitation; or
  • a shorter period where the couple has a child together.

The framework would apply automatically but include the option to opt out.

Needs‑based model

Unlike the divorce regime, the separation framework for cohabitants is deliberately narrower. The starting point would be preservation of legal ownership, with departure only occurring where necessary to meet defined needs.

Notably, there is no proposal of equal sharing for cohabiting couples. This reflects the absence of a formal legal commitment and preserves the distinction between marriage and cohabitation.

The model adopts a needs‑based approach, but only essential needs (housing, capital, income and pensions) are considered and discretionary needs excluded. There is a strong emphasis on achieving a clean break and it is proposed that maintenance be available only in exceptional circumstances and for limited periods.

Remedies and structure

It is proposed that a range of remedies would be available — including property adjustment and lump sum orders — but applied within a narrower, needs‑focused framework which mirrors, in simplified form, the approach to divorce while maintaining a clear distinction in outcomes.

Safeguards and opt‑out

A key feature is the opt‑out mechanism, allowing couples to exclude themselves from the framework by agreement, and proposed safeguards would include full financial disclosure, independent legal advice and formal contractual requirements.

Reforming the law for cohabitants on death

The Consultation sets out proposed reforms to give qualifying cohabitants greater rights where a partner dies without a valid Will (“intestate”). At present, cohabitants have no automatic right to inherit and must generally rely on a claim under the Inheritance (Provision for Family and Dependants) Act 1975 (the 1975 Act).

The central proposal is that cohabitants who meet a certain criterion should inherit under the intestacy rules in the same way as spouses/civil partners. The Consultation also proposes that cohabitants have the same priority to apply for probate (a Grant of Letters of Administration), ensuring that those who inherit can also administer the estate.

In terms of the criterion, the government is minded to adopt a “marriage-equivalence” definition of cohabitation, similar to that used under the 1975 Act. It is seeking views on minimum qualifying periods, including whether cohabitants without children should generally have lived together for at least five years and whether a shorter period should apply where the couple have a child together.

The Consultation recognises that the 1975 Act may have to be amended to bring it in line with any new law relating to cohabitants.

Conclusion: a more coherent framework

The Consultation represents a concerted effort to bring coherence to family law at the end of relationships and on death, so that the law better accommodates modern family life.

For families, the proposed reforms offer the prospect of a system that is not only fairer, but more understandable, reducing conflict at a time when clarity is most needed.

The government consultation is open for responses until 14 August. Wedlake Bell will be submitting a response and will be closely following developments in this area and how these impact our clients.