These entities can be thought of as limited to the ultra-wealthy, but with the majority of trusts now attracting their own IHT regime, non-tax benefits often lead the reason for their creation.
Trusts can protect beneficiaries (recipients of the trust) from themselves and others. Protection from the impact of divorce and creditors can also drive their creation by settlors. Some grandparents may create trusts to ensure income streams can continue in the event of their death – for example, without the administration of probate, these trusts might cover expenditure such as grandchildren’s school fees.
At EAG Tax we can assist with the decision-making process of creating a trust, detail the initial and ongoing tax implications as well as the annual compliance obligations.
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