Investment bond trust tax

Hi, I took out an investment bond for my children in 2006. It was £10,000 and am now cashing it in fully for £17,000. The trust is registered. They are now over 18 and basic rate taxpayers. I am listed as settlor and they are the beneficiaries. I am a higher rate tax payer so wanted to know should it be paid directly by insurance company to them or does it matter if paid to me and I then distribute it. Also will they or I or both need to do any self assessment or other forms declaring the gain - will be £3,500 each in year which will be their entire savings claim each? Thanks

Hi MB74 Breen,
Please refer to:
Trusts and taxes
Phone
Thank you.