Settlor – the person setting up the trust.
Trustees – the people tasked with looking after the trust and paying out its assets.
Beneﬁciaries – the people who beneﬁt from the assets held in trust.
A trust, in principle, is a very simple concept. It is a legal arrangement where the ownership of someone’s assets (such as property, shares or cash) is transferred to someone else (usually a small group of people or a trust company) to manage and use to benefit a third person (or group of people).
An appropriate trust can be used to reduce how much Inheritance Tax your estate will have to pay on your death.
As part of your Inheritance Tax planning, you may want to consider putting assets in trust – either during your lifetime or under the terms of your Will.
Putting assets in trust – rather than making a direct gift to a beneficiary – can be a more flexible way of achieving your objectives.
A few trusts will now have to pay an Inheritance Tax charge when they are set up, at ten-yearly intervals and even when assets are distributed.
You should always obtain professional advice on whether trusts could be of benefit for your particular circumstances and requirements