An 18-25 trust (which was an A&M trust but converted before the deadline in April 2008) was created on the settlor’s death, by their will. The trustees have distributed the trust assets and I am engaged to prepare the IHT accounts for the exit charge. When calculating the settlor’s available NRB, HMRC’s IHT Manual IHTM42255 - The settlor: settlor’s PLCT states that the total value of chargeable transfers made in the seven years before starting the settlement are taken into account, including any failed potentially exempt transfers if the settlor died within seven years of starting the trust. I have not come across the inclusion of failed PETs before, perhaps because the settlors of all of the trusts that I act for settled them in their lifetime (and, to the best of my recollection, no mention of this in the definition of a chargeable transfer in any study book!). Do I simply go to the death estate accounts and review there for any failed PETs, and include those in my NRB calculation? Or is it more complex than that / there are other considerations? Any help would be gratefully appreciated.