Life policy - appointment during settlor's lifetime

Mum and Dad created a lifetime flexible trust in Jan 2005 - invested in life policies that are “qualifying settlements” - on death of survivor or earlier encashment - proceeds to split equally between son and daughter subject to overriding trustee powers or appointment - son died in Jan 2006 - nothing done then to the trust - Son had a will leaving all his estate to his wife

Mum and Dad now (2016) want to irrevocably appoint all proceeds from the policies to daughter - because of overriding powers I think they can ie 50% has not vested absolutely in son’s estate.

If they can will the appointment be a PET by son’s spouse or a chargeable lifetime transfer? - I think it will be a CLT regardless of the fact that Son’s wife has no say in the matter

Re CGT I think no CGT is due because it is a qualifying settlement and the transaction is not for value

Am I correct on the CLT and CGT?

Many thanks,

Michael Micklethwait
Beviss and Beckingsale