Trusts have been used by families for centuries to protect wealth. A trust is a formal transfer of assets (whether they be property, shares or just cash) to a small group of people known as ‘Trustees’ with instructions that they hold the assets for the benefit of others. If the trust is to be made in your lifetime to take immediate effect, then it is usually evidenced by a trust deed and often referred to as a ‘settlement’. If it is to be created on or shortly after your death then the trust rules must be set out in your Will.

Whether by lifetime settlement or by Will, the trust instrument will state who is responsible for looking after the gifted assets (the Trustees), who is to benefit (the Beneficiaries) and any conditions or rules that the Trustees or Beneficiaries must adhere to. How long a trust lasts is entirely as you think appropriate but the trust period must be stated in the trust document. It might be for just a few years, perhaps during a person’s widowhood or until a child attains a certain age or marries. Trusts can last much longer however – up to 125 years. It is usually advisable to give the Trustees the power to terminate the trust at their discretion.