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What is a trust?


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

What is a trust?


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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This guidance note explains the basics of what a trust is and who the parties to a trust, such as the settlor, beneficiary, trustees and remaindermen are. It also explains the types of interest that might arise in a trust and explains some other less frequently encountered terms. It provides background information for accountants and tax advisers to help them understand the key concepts so that they can interpret trust deeds, discuss the merits of trusts with their clients and where necessary instruct lawyers to achieve their aims.

This note is necessarily simplified to include the key points for the accountant or tax adviser. It is not targeted at lawyers.

What does a trust do?

Trusts are a very old concept in English Law dating back many hundreds of years to a device used by men leaving for the Crusades.

At its most basic, a trust is where someone (the trustee) holds legal title to property on behalf of someone else (the beneficiary) without being entitled to benefit from it. Therefore the

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  • 06 Dec 2023 14:31

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Creating and managing your client's trust

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