IHTM20563 - Flexible Reversionary Trusts:what to do

The setting up of a flexible reversionary trust should be returned on the IHT403 as a lifetime transfer made by the deceased if it occurred within seven years of the date of death. You should obtain a copy of the policy schedule and the trust documents. If you are satisfied that the deceased’s retained interest was carved out from the gifted property, you can accept that no gift with reservation (IHTM14301) arises and that our claim is limited to the lifetime transfer equal to the total sum invested when the arrangement was entered into.

If you think that the gift with reservation provisions may be in point, refer the case to the Technical Team.