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.