Was the trustee aware of the endowment policy, freeatlast16? Usually a policy like this would have to be surrendered as part of the process as it is an asset. Unless a payment was made by a third party to buy out the trustee's interest?

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Originally posted by Kevin Mapstone
[br]Was the trustee aware of the endowment policy, freeatlast16? Usually a policy like this would have to be surrendered as part of the process as it is an asset. Unless a payment was made by a third party to buy out the trustee's interest?

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Yes he was but it was linked to my mortgage (interest only) so could not be classed as an asset, as it was required to pay off my mortgage at the end of the term. As it is underperforming I want to change my mortgage to a repayment mortgage and cash in the underperforming endowment policy

I'd be very careful about cashing that in prior to your trustee being discharged. It is possible that your trustee could seek to gather those funds in as it was an asset that you owned prior to your discharge.

Hi freeatlast16,

Just to echo what Kevin has said I would be careful about how you proceed with this until your Trustee has been discharged as well.

It could be the case that you surrender the policy and they write to the Trustee to clarify and they then ingather the funds.

Hi freeatlast16,

To put this in straightforward terms, I think we're all a little surprised (based upon what you have written here) that you weren't required to cash in this endowment and pay the funds into your trust deed some time ago.

Hi Guys

Just thought I would give you an update, word back from my trustee and confirmation he has/had no interest in my endowmnent policy, speaking to to policy provider it appears that my mortgage provider had first claim on the policy, so was not classed as an asset especially as there is a definate shortfall in the proposed policy value. If the final policy value was in excess of the mortgage it probably would have been a different story.

Form 6 been issued and trustee discharge imminent, I know the mess i got myself into was down to me but taking out the trustdeed got me out of a very bad place, with light now at the end of the tunnel

Well that's all good to hear freeatlast16.

It sounds like the mortgage lender had some sort of charge or security on the endowment policy.

In many other instances that may not be the case.

Best wishes for the future.