Hi kirroyale

The signing of the Trust Deed would have no impact on your benefits.

I assume you are funding the Trust Deed with the money received from the claim?

Mark

There is no reason why your benefits would be affected adversely by entering into a trust deed - you are either eligible for them or not regardless of how your debts are being dealt with.

I presume that you would be using some of the lump sum funds from your accident compensation to fund the trust deed? I guess the lump sum you have received may affect your entitlement to means-tested benefits, given that you have money in the bank. I must admit that my welfare rights skills are a little rusty though(the rules change so fast!). Presumably if you were to enter into an insolvency procedure and had to give up some or all of these funds then they should no longer have an impact on the level of benefits that you are entitled to.

If you are only receiving ESA and housing benefit then you should not be asked for any ongoing contribution from income to a trust deed, as income contributions should only come from earned income, not social security benefits.

Hi kirroyale

It's an interesting point re benefits. At present some firms will take payments from benefits for contributions, although it is not best practice. There will be changes in November which will prohibit Trustee's seeking contributions from benefits and this would at least clarify the exact position if you waited till November before signing.

Mark

You said that firms will not be able to take money from benefits, does this apply to existing Trust Deeds also?

Hi melissa.

Any change to the rules will apply only to new trust deeds.