Notifications
Clear all
Scottish Trust Deed Forum
5
Posts
4
Users
0
Reactions
1,644
Views
Topic starter
15/09/2013 9:20 pm
Hi there,
Long time watcher first time poster.
I've had a search through the forums and cant see my specific problem, but i thought I'd ask as you guys are pretty clued up on things.
Been in TD since Feb 2010, completed scheduled payments, and now into equity release £300 for 12 months.
Been having some difficulty making these payments, as wifes employment status has been 'changeable' at best, so four weeks ago my Mum offered to pay the balance. Then two weeks ago my wife was diagnosed with a critical illness ( breast cancer).
Insurance have informed us that they will be paying out the critical illness.Its a joint policy so im assuming that my Trustee would have an interest in 'my half'.
My wife is obviously stressing out because that would take a significant chunk of the money, and would probably not allow us to settle the mortgage. Shes going to non working for 9-12 months so there would be a significant drop in income, coupled with most of our current bills, its possible we'd be back in financial dire straits in the not too distant future.
Any advice or help would be greatly appreciated.
(sorry about the long post!!!)
15/09/2013 10:37 pm
Hi there,
Sorry to hear your troubles, I would check with the insurance company that you have the policy to see exactly how they will pay the proceeds of the policy - if it is joint life then each of your "lives" and the critical illness event will, I think, be insured individually but under one policy, so it may be that the money is actually payable and paid to your wife in her name. However if the policy is assigned to a mortgage lender it may be that it is payable to them directly. How that may be dealt with by your Trustee I will leave to the TD experts on here to comment on. Hope it works out for you.
15/09/2013 11:44 pm
I think Buz is right - first port of call is to check the wording of your policy.
I think it is unlikely that a critical illness policy will be assigned to a mortgage lender but it's possible.
It may also be wise to check the wording of your trust deed document (if you have a copy) to see what it says exactly about windfalls and over what period your trustee has an interest.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
16/09/2013 8:35 am
Thanks for the replies
The money isn't assigned to the mortgage, and will be going into my wife's bank account.ill will need to speak to the insurance company regarding how we are covered.
I take it if we are insured separately then my trustee shouldn't have an interest?
How long would a trustee generally have an interest after discharge? I assumed that once the form 5 was done then my obligations would be complete.
16/09/2013 9:09 am
Hi Tinyhead
If you are insured separately the the Trustee will have no claim on the money released.
If the offer is still there from your Mum, it may be an idea to consider paying the equity in a lump sum and then seek both your own and the trustees discharge. This could be done in a four week period quite easily and will leave you both to concentrate on what is definately a far more important issue.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
