Trusts for particular purposes: employment related trusts - general employee benefit trusts
Employee benefit trusts are normally created by means of a discretionary settlement.
General employee benefit trusts will have titles such as
- employee benefit trust
- employee trust
- business trust
- discretionary bonus trust
- remuneration trust
- staff benevolent fund
The funding may be by annual or periodic contributions. These trusts have various functions, to provide
- general benefits or bonuses (TSEM5050)
- sick pay or medical expenses (TSEM5075)
- for education (TSEM5175)
Unapproved share schemes are treated in the same way as general employee benefit trusts. An employment trust as a general employee benefit trust if it is not
- a retirement benefits scheme
- an approved share scheme.