Are usufructs like trusts?

A “usufruct” is common way in which assets can be held and enjoyed in civil law systems. In essence they allow a person (the usufructuary) the use and enjoyment of an asset during their life, while another person (the owner) has a reversionary interest in the asset, which comes into possession on the usufructuary’s death. The purpose of this article is to consider whether the creation of a usufruct is functionally the same as the settlement of a trust in England and Wales. This question, which raises interesting comparative law issues, has significant implications for Inheritance Tax (IHT).