Trusts may seem complicated, but they are a valuable way to retain control over your assets whilst placing them outside your ownership. The trust will allow the person who has made the gift to attach certain conditions to it. Trusts can be used as a way of managing wealth for you, your family or other beneficiaries.
Once the trust has been created, the asset is under the control of the appointed trustees. The trustees will then manage the trust according to your wishes.
Trusts can be arranged in many different ways and can specify how and when the assets pass to the beneficiaries to suit the situation.
If you are a trustee of a trust, you may need to register your trust with HMRC’s Trust Registration Service. For more details see our Trust Registration Service page.
Reasons why you might want to set up a trust:
- To make tax savings
- Asset protection – place assets outside of your estate
- To protect young children or vulnerable family members
- For succession planning in family businesses
- To make provision for young children or surviving spouses
- To protect life policies and pension death benefits
A trust can be created in your lifetime, which is to take immediate effect (often referred to as a “lifetime settlement”), or it can be created on death through your Will (known as a “Will Trust”).
There are various different types of trust, including: