Setting up trusts to manage your assets might allow you to pay less inheritance tax, depending on the type of trust and situation.
When dealing with trusts, you should know that
- The ‘settlor’ is the person who’s assets are transferred into the trust
- The ‘trustee’ is who manages the trust
- The ‘beneficiary’ is who benefits from the trusts.
Trusts are useful as they can help you control and protect family assets, pass on assets whilst a person is still alive, pass on assets when a person dies, and help with the distribution of assets to a person who is currently too young to handle their own finances.
There are several different types of trusts. To find out more about trusts and how they could work for you, read the guidance on trusts on the gov.uk website.