my client died in 2024. more than 7 years ago he had set up a discounted gift trust which owned an investment bond. the investment bond was written only on the lives of himself and his sister who predeceased him, and the bond provider advised that the bond had come to an end on his death as there was no longer a life assured. I am assuming therefore this happened by operation of law on the date of death (immediately after the death) but happy to stand corrected. Accountants for the beneficiary have said there is an income tax charge (as I realised) but that it is payable by the settlor ie by the estate, rather than by the beneficiary or by the trustees of the trust (since wound up too). This feels wrong to me but again happy to stand corrected.
does anyone have any ideas on this suggested tax treatment? many thanks in advance