Assign bare trust

An investment bond was originally held within a Discretionary Business Split Trust.
A Deed of Appointment was completed to name the beneficiary (the grantee), creating a Bare Trust.
The grantee has now signed a Declaration of Trust, creating another Discretionary Trust.
However the investment bond provider is not accepting the Declaration of Trust as they say the legal ownership still rests with the trustees of the Bare Trust and are saying they need to assign the policy out of the Bare Trust before the new trust can be effective.
Does this sound correct and what can be done to rectify the situation?

It’s difficult without seeing the trust but I assume that the discretionary business split trust was created by the Grantee and that there were other trustees appointed. Did the Grantee leave the business? Normally if the Grantee leaves the business the trustees assign both legal and beneficial ownership to them, thus winding up the trust.

But did the trustees just execute a deed to appoint the beneficial interest to the Grantee with the legal interest remaining with the trustees. You can create sub trusts but it depends on how the new trust is worded - does it say that the Grantee is the legal and beneficial owner and wishes to assign the plan to the new trust? If yes then my opinion is that the provider is correct as the legal ownership rests with the Trustees of the original trust.

Thanks Kim.
The grantee (Mr x) was the original settlor of the Split Trust.
The trustees then completed a Deed of Appointment stating that the trust fund shall be held upon trust for Mr x absolutely.
The Declaration of Trust was completed by the grantee and new trustees, and declares that a) the grantee (Mr x) is beneficial owner and b) he wishes to declare the trusts upon which the Policies shall be held and to appoint a new trustee of the Policies.
It then states who the discretionary beneficiaries are.
So the trustees should complete a Deed of Assignment to the new Trust?

So, the legal title remains with the original trustees and it appears they are holding on a bare trust for the trustees of the discretionary trust as the Grantee, as beneficial owner, has created a trust over his beneficial interest.

Maybe all that is required is for the original trustees to retire and whoever has been appointed as trustees of the discretionary trust to be appointed trustees of the original trust. Then the provider will pay out to the trustees of the split trust who then deal with the proceeds in accordance with the sub-trust - but the trustees will be one and the same.

The infant [possibly of his own bat - he might be just a few months short of 18 - or through his parent as trustee holding that cash] has chosen to invest cash derived from gifts by grandparents, etc. I assume they were outright gifts. I suggest the child is the settlor, not the plethora of donors.

That should make a TRS entry easy.

Ray Magill