In the UK, a trust is a legal arrangement in which one party (the settlor) transfer assets to another (the beneficiary). The settlor sets out the rules for how the assets will be managed and distributed. The settlor can appoint themselves or someone else as a trustee to manage the assets.

If the settlor does not retain any interest (ownership) in the asset after making a gift to the trust, it will be excluded from the settlor’s estate for IHT purposes.