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Trusts - the basics

A trust is a legal arrangement where one or more people (the trustees) are made legally responsible for assets. The assets are placed in trust for the benefit of one or more individuals called 'beneficiaries'.

The trustees are responsible for managing the trust and carrying out the wishes of the person who has put the assets into the trust (the settlor). The settlor’s wishes for the trust are usually written in their will or given in a legal document called the 'trust deed'.

With some types of trust the trustees also make decisions about how the assets in the trust should be used.

Trusts may be set up for a number of reasons, for example:

• for estate planning purposes
• the beneficiary is too young to inherit
• the beneficiary is infirm and unable to manage the assets themselves

To find out more about trusts and how they are used, read the HM Revenue & Customs (HMRC) guide below. 

• Trusts: the basics - an HMRC guide Opens new window

Types of UK family trust

There are several types of UK family trusts. These include interest in possession trusts, discretionary trusts, trusts for beneficiaries who are disabled or who are aged under 18 and have lost a parent – and others.

Read the HMRC guide ‘Types of trust and tax implications’ to find out more about the different types of trusts and how they're taxed.

• Types of trust and tax implications - an HMRC guide Opens new window

Help or advice from HMRC on UK family trusts

Read the HMRC guide below to find out what tax help HMRC can and can't give about UK family trusts.

• What trust advice HMRC can and can't help with Opens new window

If you have a trust tax question or a Trust and Estate Tax Return query read the HMRC guide below to find out who to contact.

• Contacting HMRC for help with tax on trusts Opens new window