How frequent are periodic charges in a flexible trust?

The frequency of periodic charges in a flexible trust is typically every 10 years. These periodic charges are often referred to as 'periodic charges' in the context of trusts, specifically for inheritance tax purposes. Under inheritance tax legislation, a flexible trust is generally subject to a charge on the 10th anniversary of the trust's creation and subsequently every 10 years thereafter. This mechanism is designed to periodically assess the value of the assets held within the trust and ensure that appropriate tax obligations are met, reflecting any changes in the trust's value over that time. Understanding this timing is crucial for trustees and beneficiaries alike, as it affects financial planning and tax liabilities associated with the assets in the trust.