Hi Maisie

An interesting point. If the Trustee ( and you) followed the guidance logically:

The car is worth under £3k so not an asset
You should be able to trade in for another but keep value below £3k
If value is above £3k, Trustee could claim acquirenda ( ie look for the difference)

It may be difficult with finance, but most HP companies may look at it as you don't get ownership till the last payments made, so less risk.

Mark

Mark if when the trust deed starts and the car is worth more than £3000 but obvioisly depreciates, when the car then becomes less than £3000 does that mean it is no longer considered an asset?

Thanks

Hi Spider.

I think that Mark is suggesting that the valuation point used is at the start of the trust deed (when the car could have been sold for that amount, with that amount of money then being paid into the trust deed).

In that scenario, but where the car is not sold, any contribution that will be required in lieu of the car should be agreed at that point.

Mark will correct me soon if I'm wrong.

Hi both

It depends how the Trust Deed has been set up. I suspect the normal scenario would be to accept the values at the start of the Trust Deed.

Mark