I'm afraid you will be asked where the £2k cash has arisen from.

Hi Caroleanne34 and welcome to the forum.

You are allowed a vehicle whilst subject to a Trust Deed. Any vehicle with a value less than £3,000 isn't regarded as an asset.

Your Trustee will ask where the money to purchase the car has come from. If this has come from you cutting back on your bills and saving a little here and there then there shouldn't be a problem.

If on the other hand you received a PPI payment or a lottery win and used that to purchase a vehicle there could be an issue.

Ultimately I can't see there being a problem and I certainly can't see the Trustee looking to take the vehicle from you.

If the money came from cutting back on bills ect would Caroleanne not be expected to then increase her monthly payments if she was able to save money???

What if a family member gave you money to buy a car, would that be ok?

Hi Bigred,

I think David was more trying to make the point that the source of funds might be very relevant in some scenarios and less so in others.

Things like this are always best confirmed with your trustee in advance of course. Each and every situation is different.

If the car you mention was going to be of significant value it might be best if the family member purchased the car and then allowed you to use it while retaining ownership. It takes the whole asset/windfall issue out of the picture.

Hi bigred,

It's about finding a balance. If a client reasonably requires a vehicle for work purposes then a Trustee needs to take this into consideration. I'm sure you will understand this.

If for example a client has an allowance for their food and shopping but tries to reduce this a little here and there to save for a vehicle which will then assist them in fulfilling their obligations and making their payments to their Trust Deed then I can't see their being a problem with this. The risk for the Trustee is that if they don't accommodate something like this the client can't get to and from work and therefore can't maintain a payment and therefore the Trust Deed fails.

If for example the client worked 3 miles from home, could easily use public transport to get to and from work and couldn't demonstrate that a car was reasonably required then a Trustee could decide to increase the payment per month.

If a family member gifted a client money this could be classed as acquirenda and something which the Trustee could consider as an asset. To avoid any potentials problems regarding this the safest thing would be for the family member to purchase the vehicle and allow the client to use the car.

With a lot of things it really comes down to the individual circumstances and also the decision and view of the individual Trustee.