A trust is a legal way to hold assets (money, property and possessions) for the benefit of others without giving them immediate control over it.

It is an agreement between three parties; the ‘trustmaker’ (technically known as the ‘settlor’), the trustee and the beneficiaries. The settlor transfers ownership of certain assets into the trust, and the trustee(s) manage the assets on behalf of the beneficiaries.

A trust allows you to control bequests to your beneficiaries in terms of who receives what, and when, and is an extremely effective tool for managing inheritance tax.

Why are trusts created?

• To protect an estate, particularly with regard to inheritance tax planning.
• To plan the transfer of assets in a tax-efficient way.
• To protect children who are too young to handle their own affairs.
• To protect people of any age who can’t handle their affairs because they do not have the capacity to do so.
• To minimise stress on your loved ones when you’re no longer there.