Good morning,
in 1999 my parents in law took out a DGT (with Sr. James) that returned 5% "capital" over a 20 year period.
In 2003 Father in law died. The 5% continued in payment to Mother in law.
Mother in law survives but the 20 year period is up.
Mother in law does not require the income. Four beneficiaries (adult children) are approaching their sixties and equally have no immediate need for income - some have no or minimal income whilst one is a higher rate tax payer. There are grandchildren from three of the four beneficiaries (9, of which only two have no income)
Please can anyone suggest what the sensible thing to do is. The family relationships are great and saving tax is the only consideration.
Could we simply distribute the funds to the children now and close the trust - but what are the tax implications of such.
Could mother in law just not take income and we dissolve only when all beneficiaries are low rate tax payers.
Any ideas suggestions etc., very welcome please.
If there is something I could read please point to to it as my searches have not borne fruit so far.
Many thanks.
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