Trusts are commonly employed when the beneficiary lacks the capacity to oversee the assets independently, such as in the case of dependent children. Transferring assets into a trust guarantees their preservation for the specific beneficiary, preventing them from being spent or disposed of in other ways. Trusts can serve as a strategy to mitigate Inheritance Tax (IHT).

When establishing a trust, you designate one or more trustees to oversee the assets, as well as one or more beneficiaries who will receive the assets at a time specified by you. Establishing a trust can guarantee that your estate is transferred to the appropriate individuals at the designated time.

A trustee assumes the responsibility for money held in trust for someone else, managing the funds on their behalf, and utilising them solely in their best interests while adhering to the trust’s regulations.