A trust is a legal document in which one party, known as a settlor, gives another party, the trustee, the right to hold title to their property or assets for the benefit of a third party, the beneficiary.
Trusts are most commonly established to provide legal protection for the settlor’s assets and to make sure those assets are distributed according to the wishes of the settlor. The benefits of holding assets in a trust can be as follows:-
- Having instructions set out in a trust can be time saving
- Having a clear letter of wishes to accompany the Trust can help simplification of administration process
- Certain trusts can assist in alleviating issues with and mitigating inheritance tax