Trusts and similar structures play an important role in the protection and growth of a family’s assets and often form part of an individual’s strategy to pass wealth to the next generation, reducing their exposure to Inheritance Tax. The concept of a trust has been around for centuries but how they operate in practice is still unfamiliar to many.
In family situations, a trust allows an individual to give assets away so other family members can benefit from them whilst retaining control. For example, a grandparent might be considering making a gift of cash to their grandchildren but would prefer to control how that cash is invested and when their grandchildren can access it.
Trusts and other similar structures like Family Investment Companies can help achieve this objective. Whilst the tax and legal implications of such structures can sometimes appear daunting, the complexities of establishing them and their ongoing management can be simplified with appropriate advice and support.