Settlor – Trustee – Beneficiary the same persons

[marc02]

I think I have found a source to answer my last question:

https://www.gov.uk/government/publicati ... tlors-2015

In a nutshell I read it as; spouse and minor children can't benefit without it being considered a reservation of benefit.

[AnthonyR]

Correct - that in itself may make it advantageous to retain the existing trust structure as I assume the minor children are the grandchildren of the current settlor, in which case the parental settlement rules you refer to won't apply and you get to take advantage of the children's tax allowances on a distribution of income.