What is a trust?

A trust is a way of managing assets (money, investments, land or buildings), there are multiple types of trusts and they are taxed differently.

Trusts are used for a number of reasons, including:

  • to control and protect family assets
  • when someone’s too young to handle their affairs
  • when someone can’t handle their affairs because they’re incapacitated
  • to pass on assets while you’re still alive
  • to pass on assets when you die (a ‘will trust’)

Why should you set up a trust?

There are a number of benefits to setting up trusts for your loved ones, these include:

  • Being tax efficient when it comes to inheritance tax
  • Protecting you family’s assets against care fees
  • Making sure your beneficiaries are looked after

Setting up a trust is complicated and it is advisable to speak to a specialist.