ARTICLE

Family Investment Companies (FICs) vs Discretionary Trusts: insights into choosing the right structure for your family

Private Wealth / Friday / 27 / February 2026

+44 (0)20 3691 2082

Ecurtis-bennett@greenwoods.co.uk

Choosing the right structure to support family wealth and succession planning is rarely a simple decision. Two of the most commonly used tools, the Family Investment Company (FIC) and the discretionary trust, share similar goals but operate in very different ways. For those who would like a deeper introduction to how FICs work in practice, you may also find our earlier article of interest: Family Investment Companies – What are they and should you consider one? – Greenwoods Legal Services Limited.

Here we expand on that earlier discussion and provide insights into how the key differences between the two structures can shape long‑term family planning.

Comparison of FICs vs Discretionary Trusts

Note: Stamp Duty Land Tax (SDLT) is not considered here but is something that would also need to be considered where property is involved as an asset.

Final thoughts…

Both FICs and discretionary trusts can be highly effective tools for transferring wealth, protecting assets, and planning for succession. The right structure depends on the family’s objectives, circumstances, and the level of control and privacy required. There is no “one‑size‑fits‑all” approach and tailored professional advice is essential.

If you would like to explore which structure may best support your succession or tax‑planning, our Private Wealth team would be happy to help.

This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. Greenwoods Legal Services Limited is a Limited company, registered in England, registered number 16115882. Our registered office is Queens House, 55-56 Lincoln’s Inn Fields, London, WC2A 3LJ. Authorised and regulated by the Solicitors Regulation Authority, SRA number 8011813. Details of the Solicitors’ Codes of Conduct can be found at www.sra.org.uk. All instructions accepted by Greenwoods Legal Services Limited are subject to our current Terms of Business. VAT Reg No: 502 6933 06

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