Assets are transferred to a trustee under the terms of a trust, who is then charged with managing them for the benefit of the trust's beneficiaries. Trusts are not just affluent people's financial products.

Beneficiaries can be individuals, groups, or other trusts

Trustees must manage the assets in a way that serves the interests of the beneficiaries in accordance with the specific terms of the trust agreement. Some grounds for setting up a trust as part of estate and inheritance tax preparation include the ones listed below:

·        to oversee and protect the wealth and properties of the family

·        To manage the affairs of a person who is incapable of managing their own affairs or who is too young to manage their own affairs To transfer property while you are still alive To transfer property after your passing through a "will trust" To ensure that assets are distributed to the intended beneficiaries in the most tax-effective way possible, inheritance tax planning trusts can be utilized in tax planning. Since there have been so many complicated changes to how trusts are regulated, you should consult with a skilled advisor.

So how can trusts be used to safeguard your assets?

As part of your strategy to prepare for inheritance tax, trusts can be used in a variety of ways to secure your assets, but it's important to understand that the tax treatment differs depending on the type you form. Reduce the value of your estate to lessen the burden of inheritance tax. Assets placed in a trust are normally not considered to be a part of your estate for Inheritance Tax purposes. Use trusts to reduce the overall amount of inheritance tax that will be owed upon death by making the most of your annual exemptions and allowances. To avoid paying inheritance tax, use trusts in your estate planning to maintain some control over how your assets are distributed.