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Scottish Trust Deed Forum
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04/11/2016 1:08 pm
Can anyone advise me what happens to a gift you're given during a Trust Deed?
I signed a Deed in July 2013, so I've been paying in for a little over 3 years. I had to miss a couple of payments for big household expenses, so I've got to make extra payments until the end of Jan 2017to cover this (all agreed with my Trustee). I've then got to pay off the equity in my house (should take about 18 months, unless I can increase my income).
The question is that my parents are moving house, and have indicated that they might give me a lump sum from the sale of their old house. This won't happen till after I've cleared the missed payments, so I think it would be while I was paying off the equity part, not the main Deed. They're moving quite far away, so in an ideal world, I'd use the cash to buy a car, so I could still visit them easily.
I think if they give me cash, I need to let my Trustee know, and pay it into the Deed, but if they bought me a second hand car (about £2-3k I'd guess?) instead of giving me cash, would I need to tell my Trustee about it?
Any thoughts appreciated!
04/11/2016 1:15 pm
Hi JJDecay,
This is definitely a subject to discuss with your trustee well in advance of any such payment of cash (or assets) being received.
If you haven't been discharged when this is received, there might be an issue.
Your trustee might be quite pleased if your parents paid off (or partly paid off) any liability that you still have for equity at that time. That might help you to get an early finish.
Your trustee might not object to you receiving a modestly valued vehicle from your parents.
You need to ask them though, so you know where you stand.
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08/11/2016 9:58 am
Hi JJDecay.
It is worth checking the wording of your Trust Deed if you have a copy, as this may stipulate that you only have to hand over any assets acquired within a 3-year period from the granting of the deed.
Your income contribution payments are distinct and separate from your obligations to hand over "acquirenda" (assets acquired during the course of the Trust Deed). An extension to a Trust Deed term to collect missed contribution payments does not necessarily mean that you are still subject to the same rules about other assets that you may acquire.
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