Welcome to the forum hopetobedebtfree.

Can I ask who the policy payment is actually due to be paid to please?

It's important to understand here that there's no such things as a joint trust deed (it will be two trust deeds) so it might only be one of your cases that is brought into this depending upon who the beneficiary is.

There would not be early repayment charges, but you might be liable for interest on top of the debts and also will be required to pay the trust deed fees normally as well if there's enough money for this.

I'm not sure that the 3rd party aspect mentioned is relevant depending upon who the policy beneficiary or beneficiaries is/are.

It is an important point. If only one of you is the beneficiary then it is only that person's creditors that would need to be repaid. The other of you would remain in their trust deed as originally set up.

Was most of the debt joint, hopetobedebtfree?

Firstly very sorry to hear about your husband. Whilst you will both have been through difficult times, I'm sure the money will come as a silver lining on a very dark cloud. This is yet another thing that I agree is unclear and was not explained to me properly. I stupidly thought that should anything happen to my husband the money from the policy would be paid to me for me to then pay off my TD. As it happens this isn't the case, the money goes directly to the Trustee who will take what is owed and then some and the balance would eventually come to me. Should this have actually happened, then I would have had a life assurance policy which to me was worthless as the amount left over would not have paid off my mortgage. I thought I would only have to pay the original agreed amount. Thankfully none of this happened, but just an indication of another thing that wasn't explained properly to me, and dare I say possibly not to you either if you think you have a joint TD. My understanding now is that you will have to pay the full debts, TD fees and interest in that order. Hopefully there is enough left over to make a dent in your mortgage. Good Luck and let us know how you get on.

It is a joint life policy but making a claim in my husband's name. It will be paid into our back account. Most of the debt is joint but some isn't. When we entered into the TV we issued owed about £19,500. Would I not then have to pay more to mine?

Hi there.

Maybe speak to the insurer to check who the beneficiary is in this instance.

The fact that it's being paid into a joint account isn't necessarily the same thing.

If your husband is the sole beneficiary then I don't see that your Trustee has any right to use the funds towards your Trust Deed, hopetobedebtfree. However, best to check exactly what the policy says in respect of who the beneficiary is.

Assuming your husband is the sole beneficiary then his debts (including any joint debts) would be paid along with interest, as would the costs of his Trust Deed. Any remaining funds should come back to him.