Hi Billwills

I don't think there would be any problem here. It may be that the way it's structured is important.

Do you know how much value the Trustee has put on the car ie how much are they looking for. If it followed the normal £2000 - £1000 limit = £1000 to pay, the new car could be purchased by another family member on the basis that the agreed value is paid at the end. I think if you can afford to up the contribution, the Trustee will look for this as a contribution and not for the car. Unless this was paid by a 3rd party.

There are a few variations, but can't see any real problem.

Regards

Mark

Thanks Mark, so for calculations sake:

I get the new car which costs £4,000.

I increase my contribution by £60 for 17 payments which is £1,020 extra.

When the TD ends if the car is valued at £2,000 do these additional payments cover it then so there would be no additional payments required?

What would happen if it was valued at 3,000 at the end?

How should I approach this with my trustee?

Sorry for the bombardment of questions. Your time is greatly appreciated.

Hi Billwils

No problem. I think the important thing is to find out exactly what the Trustees position is with the car ie was it valued at £2k at the start and the Trustee is looking for £1k and nothing more.

If the Trustee is looking to value at the end, then you need to consider how it's structured as the Trust Deed is gaining an asset.

My advise is to ask the Trustee exactly how the car will be valued and let me know. I can then structure something for you to keep you right.

Mark

I think the trustee said it would be valued at the end.

And I remember him saying there was a 1,000 allowance but he anticipated the cars value would be around 1,000 anyway, does that make sense?

I think you should speak to the Trustee and agree a figure to allow the upgrade. If you can demonstrate that the funds for the upgrade are from a third party, then I see no reason why they wouldn't agree something like Car value less allowance less £2k 3rd party deposit = trustees interest.

Mark

Thanks for your help, I will contact my Trustee to speak about this.

Would a letter or duplicate of the cheque from the 3rd party be sufficient?

Bill W

Hi

I think confirmation in writing would be an idea, plus proof of the source of the funding.

Shouldn't be a problem, but belts and braces approach is best.

Mark