I believe that by so doing, no chargeable event is triggered, the assignment becomes a PET, at the value at time of assignment and there would be a saving of income tax if the settler were a 40% tax payer whilst the recipient remained a lower rate payer at such future time as the bond were encashed.
Correct.
Does the assigned bond have to be placed in a formalised bare trust, with the insurance company acting as trustee or would the minor's parents/guardians automatically become the trustees? If the latter, should the bond be assigned to the minor's name or to the "parents' names as trustees for the minor's name"?
The current owner of the bond could simply declare that henceforth he/she held the bond as bare trustee for the minot.
Alternatively, the bond could be transferred to the minor's parents for them to hold as bare trustees for the minor.
The bare trust should contain all relevant trust provisions.
The insurance company should be notified of the changes.
I assume that the parents are not the current beneficial owners of the bond.