It is important to have a basic understanding of trusts if you are contemplating using a trust in conjunction with inheritance tax planning.
There is no simple all-embracing definition of a trust in English law. Moreover, there are several different types of trust that arise in different circumstances.
These are examples of a lifetime trusts which may help you to get to grips with the concept.
If I were very wealthy and generous, I might decide that I wanted to provide some form of financial benefit for certain relatives of mine – for instance, an elderly aunt and two young nephews.
I might decide on the provision of a fund of £1,000,000 ...