It must be declared to your trustee and while they may take some of it your wife should get to keep a portion,often a 50/50 split in extra income is made but you would have to check with your own IP(it may even be in your paperwork).

Remember that whilst you may not gain fully just now,if its a good career move you will gain in the future when the trust deed has been and gone.

Paul

Thank you very much plasticdaft.

My pleasure. The answer to most questons will be contained in your paperwork but feel free to keep the questions coming!!!

Paul

Hi davyj and welcome to the trust deed forum

Good advice from Plasticdaft, speak to your trustee or look at your trust deed paperwork as they will tell you how any addiitional money will be dealt with and the percentage you need to pay over to the trustee

Whilst 50/50 would seem reasonable, I would push for a bit more, perhaps 60/40. The phrase 'something is better than nothing' works both ways. Earning the additional money through overtime etc. has to be worth while to the person working and in my opinion that would mean that the person should receive that extra incentive. 40% to the trustee is better than nothing 🙂

I dont think you can demand that you get a 60/40 split in the same way that your trustee cannot demand you go out and work overtime!!

Paul

This really comes down to what was agreed at the start. If there is no agreement the Trustee can use their discretion and may well require 100% of the extra income to be paid over.

For a long time this has been on our list of "things to get in writing before you sign a trust deed".

Extra income (such as overtime, a bonus or commission) will be entirely at the discretion of a trust deed firm unless some form of prior agreement has been made.

Anyone thinking about signing a trust deed... please bring this up at the first meeting and request written clarification. Where it is raised up front most trust deed firms will agree to a split that will give you a good incentive to earn more and also benefit your creditors as well.

I didn't mean that someone should demand. I was just trying to make the point that these things, if not already agreed, are open to negotiation. Is it in the best interest of a creditor that they don't get any extra income at all because they were being too greedy?? The person who is going to put in the effort and make the extra income should have the upper hand and final decision whether to earn it or not (in my opinion). Therefore is must be a worth while exercise.

a 50/50 split is pretty much the normal,although you are often allowed to earn 10% extra a month without any of it going to the PTD.

Paul

I think this is an area where there is no general position and therefore people should check their own trust deed documentation and make their own direct enquiries to their Trustee.