Cashing in bonds in trust.

ANGLICANPAT

9 years ago my OH and I (via IFA whom we no longer use) put £40k between Scottish Widows Flexible Bond , and Prudential Investment Plan into Discretionary Trusts to benefit an adult daughter on our deaths. Joint lives assured.

The value is now around £50k . It would appear (I think)from the blurb, we can remove this money whilst alive as long as it goes to our daughter (who now would really benefit from it towards a mortgage deposit ) . It seems if it was left alone till we died it would pay out an extra 1% of the final balance, but other than that it doesnt seem to be disadvantageous to remove it whilst alive --unless Ive missed something so obvious its not even mentioned.

Im presuming the downside of removing it now , must be tax. (No further payment made in , or drawn out ) Would it just be a matter of declaring half the profit each on next years tax return added to other income ? Or is it done differently? I presume cgt wont be an issue as it is well under our allowances?Thanks.

*** Just noticed this is accidentally in the totally in the wrong section sorry, have re-done it under tax saving.