Business Trusts

What is a business, Trust?

A business trust is where the business owner/shareholder called the 'settlor', transfers what he or she owns, money, assets or shares into a trust which becomes the property of the trust, this can happen within a business Will or a business lifetime trust.

Why create a business trust

There could be various reasons why someone would create a business trust, such as:

·      To separate personal assets from business assets for tax reasons.

·      To reduce the amount of inheritance tax to be paid.

·      To protect assets for the benefit of beneficiaries, some of whom may be minors.

·      To avoid the necessity for probate or for the benefit of setting up charities or for charitable purposes.

Business owners and individuals are becoming more aware about the advantages of using Trusts.  Business trusts are not only to pass assets to the next generation, but also to use during their own lifetimes to manage assets or commercial properties.