A Trust can be a highly tax-efficient method of passing on assets and are used to separate the ownership and management of assets from those who will be the beneficiaries. When you set up a Trust, you select Trustees who are responsible for the management of the Trust and all decision making. The Trust Deed will specify the powers which they must adhere to.
There are several different types of trusts available which are all used for different purposes, such as;
- For children or grandchildren to protect their inheritances
- For a disabled person which can be set up during their lifetime to ensure that assets and funds are correctly managed
- "Nil Rate Band Discretionary Trust" which is used for protecting your assets against inheritance tax.
Trusts are highly flexible, there are a number of ways in which a Trust can help you and your family as they can be set up at any time and you do not have to wait for your death for them to become operable.