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International Flexible Trust

The International Flexible Trust allows a non-UK domiciled settlor to nominate a beneficiary who would be paid the proceeds of the death claim without the need for obtaining Isle of Man Probate and can offer UK Inheritance Tax (IHT) advantages for non-UK domiciled individuals who may later become deemed UK domiciled. 

 

Similar to the Isle of Man Probate Trust (i.e. avoids obtaining Isle of Man Probate) but with more flexibility for UK foreign national who may be deemed UK domiciled in the future. 

 

The International Flexible Trust is not suitable for someone who is UK domiciled as the trust has a wide class of beneficiaries (of which the settlor is one) and it would therefore be a Gift with Reservation. It would also form part of their estate for UK Inheritance Tax (IHT) purposes.

 

General Features of the International Flexible Trust

  • the trust can have up to two settlors
  • the trust can be used for existing plans
  • the trust can accept top-ups.

 

Key Points to Note

  • the trust should only be used by individuals who are non-UK domiciled for UK IHT purposes. This is because, for individuals who are UK domiciled, the creation of the trust would be a chargeable transfer as well as a Gift with Reservation
  • the settlor is a beneficiary of the trust
  • for a non-UK domiciled settlor, the trust can be used as an Excluded Property Trust.

 

The International Flexible Trust may be suitable
for non-UK domiciled individuals who

  • wish to retain access to their investments
  • wish to ensure that their plan passes to a nominated beneficiary upon death.

 

Visit our Trust Information & Downloads page for more information and downloadable literature about our trust range.

 

Important Notes 

Please note that every care has been taken to ensure that the information provided is correct and in accordance with our current understanding of the law and practice at HM Revenue and Customs (HMRC) as at June 2019. You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The law and HMRC practice are subject to change. Legislation varies from country to country and the plan owner's country of residence may impact on any of the above.