What is the IHT treatment of the bare trust?

For protection policies only

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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 potentially exempt transfers.

The beneficiaries have the trust fund value within their IHT estates. If one of the beneficiaries dies, their share of the trust fund will devolve in accordance with the terms of their will or the intestacy rules.

This information is based on our understanding of current, taxation law and HMRC practice, which may change.

Trusts establish legal rights and entitlements and might have material financial and tax implications for the Settlor, Trustees and Beneficiaries. Aegon UK is not authorised to provide legal advice, so you should take your own legal advice before setting up a trust, to make sure that it meets your requirements. Our trusts have been drafted for use by UK domiciled individuals.