An Asset Protection Trust is designed to help safeguard your wealth from future risks in certain circumstances such as divorce, creditor claims, or care-home fees. Assets transferred into the trust may be outside your estate for IHT (depending on the trust type and provided you retain no benefit), potentially reducing exposure.

You retain control over how and when beneficiaries can access the funds, ensuring they are used responsibly. This structure protects family assets for future generations while maintaining flexibility. Trustees must always act in the best interest of the beneficiaries when managing the trust. It is often used to protect property or significant investments while allowing lifetime benefits if needed.

A Bare Trust gives the beneficiary an absolute right to the trust’s assets and any income generated. The trustee simply holds the assets until the beneficiary reaches 18 (or 16 in Scotland), at which point the assets and any income generated are paid to the beneficiary, making it ideal for passing wealth to children or grandchildren.

All income and gains are generally taxed on the beneficiary, which can result in lower overall tax if the beneficiary has unused allowances. Transfers to a bare trust are usually potentially exempt transfers (PETs) and are outside the settlor’s estate after seven years, provided no benefit is retained. This trust is simple, transparent, and cost-effective for straightforward family gifts.

A Business Trust is tailored for owners who want to hold assets such as shares or personally owned business assets (e.g. a partnership interest) in trust for the next generation while maintaining business continuity. By transferring qualifying business assets into a trust, you may be able to leverage Business Relief to reduce or eliminate IHT liability.

Trustees can manage voting rights and ensure that the company remains under professional stewardship. This structure provides succession planning, safeguards key assets, and help mitigate the impact of family disputes. It also can create a tax-efficient pathway for long-term ownership subject to ongoing BR qualification and trust charges.

A Charitable Trust is a trust established exclusively for charitable purposes to benefit charitable causes or organisations. Transfers to a qualifying charity are exempt from IHT (lifetime or by will), and any income or gains within the trust are generally exempt when applied for charitable purposes; non-primary-purpose trading and some activities may be taxable. You maintain control over how donations are managed and distributed, creating a lasting legacy. Charities can claim income and CGT exemptions when funds are used for charitable purposes.

This structure can be used during your lifetime or through your will to ensure ongoing support for charities you care about. It’s an ideal solution for philanthropists seeking both impact and tax efficiency. Non taxable trusts created after certain dates may have specific registration requirements and offer additional tax advantages.

A Discounted Gift Trust lets you gift a lump sum into a trust for IHT purposes while retaining a fixed regular income for life. Because you keep a right to this income, the value of the “gift” is discounted for IHT calculations, providing an immediate tax advantage.

Any growth on the investment falls outside your estate from day one. It is particularly effective for individuals who want to reduce their taxable estate but still need access to a guaranteed income stream.

A Family Trust provides flexible, long-term control over how assets are distributed among families and family members. It allows you to transfer wealth outside your estate for IHT planning while setting rules on when and how beneficiaries can receive funds. Family trusts can also be structured to include other beneficiaries beyond immediate family, allowing for flexible wealth distribution.

Trustees can adapt the trust over time to meet changing family circumstances, protecting wealth against divorce, bankruptcy, or mismanagement. This trust is ideal for safeguarding multi-generational assets and ensuring your wishes are followed.

An EBT is used by employers to provide bonuses, share incentives, or other benefits to employees in a tax-efficient way. Assets placed in the trust are outside the company owner’s estate for IHT purposes while rewarding key staff.

Trustees manage distributions according to company policy, helping retain talent and align employees with long-term growth. Properly structured, an EBT can reduce employer tax costs and support succession planning.

A Flexible Reversionary Trust allows the settlor to receive fixed payments at predetermined dates while starting the seven-year IHT clock. If payments are not taken, the funds remain in trust and continue to grow outside the estate.

This structure offers a balance of control, flexibility, and tax efficiency, making it ideal for those who may require occasional access to capital but still wish to reduce IHT exposure.

This trust gives a beneficiary a life interest, meaning the right to income from the trust during their lifetime, while the capital is preserved for future beneficiaries. It is commonly used to provide for a spouse or partner while protecting assets for children from a previous relationship.

Income is taxed on the life tenant, and the capital can qualify for IHT relief depending on timing. It ensures financial support now while safeguarding long-term family wealth.

A Loan Trust allows you to lend money to a trust rather than gifting it outright, so the original loan remains part of your estate but any growth is outside it for IHT.

You can recall the loan at any time, giving flexibility and access to capital if needed. Investment growth accumulates for the beneficiaries, making this a low-risk method of gradual wealth transfer with tax advantages.

An Offshore Trust is established outside the UK, typically in favourable tax jurisdictions, to manage international assets. It can provide confidentiality, protect assets from local taxes, and assist with cross-border estate planning.

When structured correctly, it can remove non-UK assets from the UK IHT net while maintaining investment flexibility. Professional advice is essential to remain compliant with UK anti-avoidance rules.

This trust is designed to provide long-term financial security for individuals with disabilities or special needs. Often, a Disabled Person’s Trust is established specifically for a disabled person to ensure their ongoing financial support and protection. It ensures that beneficiaries receive ongoing support while protecting their entitlement to means tested benefits, as assets held in the trust are not counted as the individual’s own resources.

The trust enjoys special tax treatment, including lower income and capital gains tax rates. Trustees manage the assets to protect the beneficiary’s welfare while keeping the estate outside IHT.