WHAT IS A TRUST?
A Trust is established by the Settlor, who usually provides the assets held in the Trust. The trustees are the legal owners of the assets and use the trust deed to decide how the assets will be used. The beneficiaries will usually be family members: children, grandchildren, their spouses and other close family members.
A trust is a way of managing assets (money, investments, land or buildings) for people. There are different types of trusts and they are taxed differently.
Trusts can be used for various reasons, including:
- To control and protect family assets
- When someone’s too young to handle their affairs
- When someone cannot 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’)
- Under the rules of inheritance if someone dies without a will (in England and Wales)