Lawyers have welcomed government concessions in the Finance Bill on spouses protected by trusts in wills, but warn that several other problems with the proposals are still to be addressed.

The changes see the retention in some cases of the spouse exemption, the loss of which could have affected people in second marriages or who wish to use trusts to comply with Sharia law.


The government has also adopted 'a much more sensible line' on will trusts vesting assets to children between the ages of 18 and 25, the Law Society said.


President Kevin Martin said: 'The government has moved a long way from its original proposals and that is very good news. Solicitors will welcome the fact that many millions of their clients will not, now, have to go through the expense and trouble of having their will reviewed.'


But he called on the government to deal with the Law Society's other concerns.


Mr Martin said: 'In particular, we are concerned that existing trusts will still be adversely affected by the proposals, as will lifetime trusts such as those established on divorce, those set up by individuals facing diminishing capacity to deal with their affairs (such as people with early-stage dementia), and grandparents wishing to help their grandchildren.'


John Riches, chairman of the Society of Trusts and Estate Practitioners' technical committee, warned that the new regime might yet make some families' existing wills unsuitable.


However, he added: 'We still need to work through the detail of the changes and not everyone will be satisfied, but for anyone planning on using a trust in their will, things are looking a lot better than they did.'