Trusts are a vehicle for holding assets. They, like you, can hold a variety of assets including property, cash and shares. Trusts are managed by a group of individuals known as trustees who hold the assets for a class of people called beneficiaries.
Depending on the type of trust and the amount put into a trust, it can trigger an immediate tax charge. Trusts, like you, are also subject to their own tax regime and advice can be given about how best to structure any trust arrangements.
There are a number of different types including:-
They can be useful for a number of reasons including tax planning, asset protection or because of concerns about people's ability to manage money or other assets. They are often set up as part of IHT planning and to reduce the estate of the ultimate beneficiaries, such as to receive your death in service benefit or life insurance. They can also be useful for asset protection purposes too.
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