This is a vehicle that can help families to protect assets and also pass them on tax-efficiently.
There are three parties – a settlor puts assets into trust, a trustee then manages them in accordance with their wishes and a beneficiary receives income, capital or both at an agreed point in the future. There are several types of trust. The simplest is known as a bare trust where a beneficiary is known to and can be named by a settlor. Alternatively where there are multiple beneficiaries and/or the benefits from an asset are to be split, a discretionary trust may be more appropriate.