Hello Thinkingofthefuture.

Some trustees will consider early settlement. Particularly in the latter stages of a trust deed they might consider a payment from a third party equivalent to the remaining contributions which are expected to be paid.

The benefit to creditors here is that they get their money sooner, the fees might be a little less and that the risk of a negative change of circumstances later is taken out of the equation.

Other trustees will not consider early settlement unless the debts are fully repaid along with interest and the fees for the trust deed.

The benefit to the creditors here is that they're either paid in full or (if such a settlement isn't possible or desirable) the trust deed will run for longer meaning that there's more chance that a windfall payment might come along.

In some cases there might be special circumstances that come into play. For example, this might be where someone is diagnosed with a serious illness or made redundant with little chance of finding work with an equivalent salary.

As always it's a case of raising the subject with the trustee to establish what their position is.

Hi

The situation with my friend has become a bit more complex now. His Father passed away recently and his mother has the option of transferring his fathers 50% equity in their home to my friend...but needs to do this within the statutory 2 year period. If this doesn't happen within 2 years, then the normal 7 year rule will apply should anything happen to his mother across the next 7 years.

His trust deed won't naturally finish within the next 2 years.

Are there any options to naturally conclude the trust deed in just over 2 years time & for him to receive his fathers equity without his trustee having any interest in it?

Thanks

Not of which I'm aware Thinkingofthefuture. Having said that I'm no expert on the different ways property can be transferred and held so some legal advice might be useful.

In essence though if your friend receives an asset prior to their discharge the trustee is likely to be obligated to use that to help repay more to the creditors.