There are many different types of trust solutions, all individually designed with a particular purpose in mind. Some types of trusts are treated differently for inheritance Tax purposes.

Many people would like to be able to make gifts to reduce IHT however are concerned about losing control of the money, this is where a trust could help but also speaking to an independent finacial adviser who would be able to explain everything you need to know in greater detail and answer any questions. The rules changed back in 2006, making some of them less tax-effective , as a small minority will require you to pay IHT even before you have died, but it is still worth considering them. When speaking to anyone but specially a independent financial adviser you will hear the terms:

• Settlor – the person setting up the trust

• Trustees – the people tasked with looking after the trust and paying out
its assets

• Beneficiaries – the people who benefit from the assets held in trust

There are now three main types of trusts. Any number of different types of investments can be held in a trust, so you it is important that you seek independent financial advice in order to help you understand them all better and help decide which one will suit you best.