I am instructed in relation to a discretionary trust which was established on the death of Mr B. The trust was set up to receive the funds from Mr B’s death in service pay out from his employer, and his two children are the potential beneficiaries.
I am now considering the position in respect to an exit charge of an appointment out of the trust, and also 10 yearly charges.
I understand that the settlor of a discretionary trust created to receive death benefits paid from a pension scheme is the pension scheme member, but I am unsure if this rule would also apply to a death in service benefit.
Any guidance on what I need to consider in calculating an exit and 10 yearly charge in this situation would be appreciated.