What is the IHT treatment of the flexible trust?

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The flexible trust is subject to the same IHT treatment as a discretionary trust.

The premiums may be covered by an exemption such as the annual exemption or normal expenditure out of income exemption. To the extent that they aren’t exempt, they will be chargeable lifetime transfers.

The trustees are subject to ongoing IHT charges, such as 10 year charges and exit charges. While the life assured is in good health, the value of the trust will generally be nil or negligible.