10th October 2025

What Is a Trust and Should I Use One?

Trusts are powerful planning tools that help protect family wealth, reduce Inheritance Tax (IHT), and ensure your assets are passed on according to your wishes.

They allow you to manage, control, and protect wealth across generations while maintaining flexibility and privacy.

What Is a Trust?

Put simply, a trust is a legal arrangement where you (the settlor) transfer assets to chosen individuals (the trustees) to hold and manage for the benefit of others (the beneficiaries).

A trust can be created during your lifetime or as part of your estate plan after death.

Trusts are often used to:

• Protect family assets from risk and mismanagement
• Reduce or mitigate Inheritance Tax
• Support beneficiaries in a structured and responsible way
• Avoid lengthy probate procedures and provide confidentiality

Why Use a Trust?

Trusts offer flexibility, control, and long-term protection. You might consider using one to:

• Pass on wealth in a managed way, at a time you choose
• Maintain influence over how assets are used
• Protect family assets from divorce, creditors, or poor decision-making
• Reduce your exposure to UK Inheritance Tax
• Simplify estate administration and avoid probate delays

When integrated into a broader financial plan, trusts can serve as the foundation of a strong succession strategy that balances protection, control, and tax efficiency.

Trust Solutions Offered by Metis

At Metis, we work with leading trust providers to deliver tailored solutions designed to fit your family’s long-term goals. Each trust type serves a different purpose and level of control.

Discretionary Gift Trust

Gives trustees full control over how and when assets are distributed to beneficiaries. Ideal for families seeking flexibility and long-term adaptability.

Absolute (Bare) Gift Trust

Gives named beneficiaries a fixed and immediate entitlement to the trust’s assets. Suitable for straightforward gifting when outcomes are certain.

Loan Trust

Allows you to loan capital to a trust that invests those funds. You retain access to the original loaned amount, while any growth achieved by the trust is outside your estate for Inheritance Tax purposes.

Discounted Gift Trust

Combines a gift to the trust with an ongoing right to receive income, typically as regular withdrawals. It can provide an immediate IHT reduction while maintaining access to part of the capital during your lifetime.

Reversionary Interest Trust (Lifestyle Trust)

Allows periodic payments to return to the settlor while reducing IHT liability and retaining control over how and when the final beneficiaries receive the remaining assets.

When to Consider a Trust

You may wish to use a trust if you want to:

• Set aside funds for children or grandchildren that they cannot access until the right time
• Reduce your Inheritance Tax bill while retaining control and access to income
• Ensure your wealth passes smoothly to loved ones without legal delays

Trusts can also form part of a broader wealth and tax strategy, supporting other structures such as offshore investment bonds, foundations, or company ownerships.

How Metis Help

At Metis, we take a planning-first approach, starting with your goals, understanding your family’s needs, and then building the right combination of tools to achieve them.

Our team combines UK-regulated expertise with international experience, helping you structure your wealth effectively across borders while protecting your legacy.

This is wealth. Built with Wisdom.

If you’d like to discuss UK tax, wealth management, or succession planning, our advisers are here to help.

Please note this is a general guide and is not advice that can be relied on. It is important that you seek specific advice for your own circumstances.

This material is intended for both Professional and Retail Clients, as defined by the Dubai Financial Services Authority. Metis Financial Planning Limited is regulated by the Dubai Financial Services Authority