Explore estate planning
Estate planning is about putting your affairs in order, to help make the lives of your loved ones easier. It can help to protect your estate for your beneficiaries and reduce the impact of inheritance tax.
What is a trust?
Understanding trusts and when they might be relevant
A trust is a legal arrangement that can be used to hold money, property or other assets for the benefit of one or more people.
Trusts can be useful in some estate-planning situations. For example, they may help people manage how and when assets are passed on, provide for children or vulnerable beneficiaries, or set out how money should be used in the future.
However, trusts can be complex and are not right for everyone.
The people involved in a trust
A trust usually involves the person putting assets into the trust, the people responsible for looking after those assets and the people who may benefit.
Why might someone consider a trust?
Possible reasons include arrangements for children or grandchildren, protecting money for a purpose, supporting a vulnerable family member or managing how assets are passed on.
How trusts work
A trust is a legal arrangement where assets are looked after by one or more people for the benefit of someone else.
Trustees have legal responsibilities and must manage the trust in line with its terms and the law.
Learn more about how to set up a trust
Types of trust
There are different types of trust, and they can work in different ways.
Some may give a beneficiary a right to income or assets. Others may allow trustees to decide how and when assets are used. Suitability depends on the people, assets, purpose and wider tax position. Some trust arrangements are complex and may be product-specific, so financial, legal and tax advice is likely to be important before making a decision.
Learn more about the types of trust
Trusts and inheritance tax
Trusts can have inheritance-tax implications, but treatment depends on the trust type, assets and circumstances.
A trust should not be set up solely because of a possible tax benefit.
Trusts and gifting
Putting assets into a trust may be treated as a gift for tax purposes.
The value of assets, type of trust and individual circumstances can all matter.
When to seek advice
Advice is likely to be important if a trust is being considered for children, grandchildren, a vulnerable family member, business assets or inheritance-tax planning.
Further resources
Find a financial adviser
As life changes, so do your financial priorities. Speak to a financial adviser to explore solutions tailored to your goals, circumstances and long-term plans.
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Important information
This information is intended as a general guide only and is not personal financial, legal or tax advice. Tax treatment depends on individual circumstances and may change in the future. Before making decisions about gifting, inheritance tax, estate planning, trusts, probate or legal arrangements, consider taking appropriate financial, legal and tax advice.