Hi there,

I think you need to have a proposal put in writing to your trustee seeking written clarification of the mechanics of the winding up of your Trust Deed in return. All Trustee's will have different procedures when closing early and it varies case to case depending on asset structure and what was agreed at the outset. Some will allow full closure on receipt of outstanding contributions and assets when they have paid dividends. Others may accept the funds but not allow you to be disharged until the original exit date in case any other assets come in to the estate. Best to get full clarification on the 'deal' prior to payin any money over to avoid any disappointment.

In addition where's funds are paid over with an immediate discharge not given, the Trutees duty to review income and expenditure remains. The Trustee should not however be advisin you to make cash transactions to avoid this. Savings would only be allowed if they were allowed at the start of the trust deed. Usually not. Certainly not any great amounts anyway. If it is just monthly contingencies put away to cover MOT ect then his is acceptable.

Thanks Rob. I get the feeling that this could go disastrously wrong!

Think positive. Any reduction in time is merely a bonus. I of course appreciate how very important this is to you but take baby steps. Get the proposal in and ensure you get clear instructions and agreement back. Then make your decision the . Feel free to pop back at any time for guidance.

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Originally posted by Rob Hardie

In addition where's funds are paid over with an immediate discharge not given, the Trutees duty to review income and expenditure remains. The Trustee should not however be advisin you to make cash transactions to avoid this. Savings would only be allowed if they were allowed at the start of the trust deed. Usually not. Certainly not any great amounts anyway. If it is just monthly contingencies put away to cover MOT ect then his is acceptable.

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What about savings in the form of what your monthly contributions were? Clearly if a full and final offer is made and accepted its up to the person who was in the td what yhey then do with their cash??

Paul

That's what I'm worried about Paul. If its accepted that I pay off the TD I'm obviously going to have my £250 monthly contribution as extra cash every month, so it seems to me that during the 6 months till discharge I'd have to sit tight and pray no one asks for extra money. As my sister is paying off my TD for me, I want to just redirect the money to her to start paying her back, but it seems like if a creditor got wind they can demand the money?!

Very confused by the whole process, I had just presumed it would be plain sailing 🙁

I would see no issue with that. The point is that the process must continue until the Trustee receives their discharge. The income and expenditure would be reviewed but they may only have an interest in any increase in net free income, over and above what the original contribution was as this is what would be required to be paid over and above your contribution, if you were still paying it. Try not to worry about it it's unlikely that you will have to pay anything else.

Thanks Rob, I'll certainly be taking your advice and asking for everything in writing!