A trust set up, often for tax planning purposes, by a settlor during his lifetime with:

Following the introduction of anti-avoidance rules in Finance (No.2) Act 2015, adding funds to pilot trusts on death under the terms of a will may trigger the same-day addition rules (see Practice note, Inheritance tax: relevant property trusts: key concepts: Same-day addition).

Pilot trusts are often set up as spousal bypass trusts to receive death benefits under a pension scheme or a legacy in a will.

A pilot trust does not have to be in any particular form. It takes its name from the fact that the initial amount of cash used to set it up acts as a "pilot flame". This ensures that it can exist, possibly for many years, without triggering any tax or reporting obligations.