A Deed of Assignment of a Loan to Trust is a legal document used to transfer ownership of a loan from an individual or entity to a trust. This deed is commonly used in estate planning to help protect assets from inheritance tax and ensure that they pass to beneficiaries according to the wishes of the settlor.

The process of assigning a loan to a trust involves several steps. First, the settlor must establish the trust and name it as the new owner of the loan. Next, a deed of assignment is prepared, which identifies the loan being assigned and specifies the terms of the transfer. The deed is then signed and witnessed in accordance with UK law.

Once the deed of assignment is executed, the trustee becomes the legal owner of the loan and is responsible for managing it in accordance with the trust's objectives. The settlor may also specify conditions or restrictions on the use of the loan by the trustee, such as limitations on how the funds may be invested or distributed.

By assigning a loan to a trust, the settlor may be able to reduce their estate's exposure to inheritance tax, since the loan is no longer considered part of their personal assets. This can also help ensure that the loan proceeds are distributed according to the settlor's wishes, rather than being subject to the terms of a will or other estate planning instrument.