I have inherited a will trust which left residue to two children contingent on them attaining 25.
Initially a bereaved minors trust which converted to an 18-25 trust as they reached 18.
Part of the trust fund was invested in investment bonds and the regular 5% withdrawal was being paid to a beneficiary for maintenance. She is now 25 and I have been asked to look at exit charges etc. My question is, whether the regular payments of the 5% withdrawals should have been declared as exits from the trust whilst it has been an 18-25 trust or does the fact that the withdrawals attract an income tax charge mean that they won’t attract capital tax or does anyone have any other advice/thoughts on how this should be dealt with.
I feel like I may be missing something obvious so feel free to point it out!