We have an 18 to 25 trust, covering four children. Two of the four have are over 18, and the trustees want to make a part payment to one of them. We have to calculate the exit charge.
The examples I can find all relate to a single beneficiary, not the multiple beneficiaries we have here. This cannot be an unusual situation (although I have not come across it before) so I hope someone can answer this, or point me towards an answer.
I understand that, in calculating the charge, we are looking at the value at the date of death, not the current value.
However, in calculating the exit charge, are we bringing into account
a. only the 1/4 share of the beneficiary receiving the payment, or
b. that share plus the share of the other child who has reached 18, as these are the parts of the fund now being treated as relevant property, or
c. the whole trust fund, including the shares of the two children who have not reached 18?
Colemans Solicitors LLP