She added: “Those leaving assets or making lifetime gifts to family members may also wish to retain control over the timing of the distribution of capital and income to different beneficiaries.
“This may be for tax efficiency or to protect the funds from the effects of divorce or bankruptcy of a beneficiary.”
Sebastian Riemann, adviser at Libra Financial Planning, agreed, adding trusts were a "fundamental part" of the advice process particularly for protection.
He said: "They can be used for a number of reasons including ensuring a swift pay out on claims and guaranteeing the benefits go to the intended parties."
Mr Riemann added there were many different types of trusts and benefits attainable, adding it was a highly complex area which required professional advice.
He thought part of the reason the number of trusts was falling was because more protection plans were being taken up directly by the consumer without full consideration of the options available.
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