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A Limited Company is a legal "person" in its own right, a concept which many people understand.
Trusts have a similar legal existence, but are used for personal, rather than trading purposes.
Many trusts are set up for tax purposes but can be set up for other purposes. A Japanese grandfather set up a trust to buy a house in London in order to avoid Japanese inheritance tax laws under which his only child would inherit at least half his estate.
An Interest In Possession Trust allows a beneficiary to enjoy the "present right to present enjoyment" of an asset without having control of that asset.
A Discretionary Trust is one under the control of its trustees.
An Accumulation and Maintenance Trust is set up for beneficiaries who are under 25.
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