Afternoon BMC

I would run this past your Trustee. Technically, it should be paid into the Trust Deed.

If the bonus was to purchase or take out any car agreement, then the trustee may exercise discretion.

P

Hi Paul,

Thank you for your reply.

This is a reward given by motability to help toward the next motability car. My wife is disabled and the money given will be used to get the next car. Its not a wind fall.

Thanks again.
BMC

Hi BMC,

I thought it was a bonus for keeping the previous car in good condition that could be used by the recipient for any purpose of their choosing. Have I misunderstood that?

Hi again

Well, as far as I understand it most people on the sceme like me will need another car and generally the garages end up seeing the good condition bonuses being paid back into a garage for their next car? I told my TD company a few years ago and they were fine with it being kept for those purposes but I am with another company now.

Hi BMC,

Your trustee might well be fine with this given the explanation that you are providing.

You'll definitely want to run it by them though because this payment does really appear to be a windfall by nature.

I hope that you get the answer you're hoping for.

Hi TDA,

Thank you for your reply. I really appreciate everyone's kind input.

Hi BMC

I'm assuming your wife is in a TD, as her receiving the £600 should not affect your TD or contribution, as you Trustee cannot compel information from your wife?

Easiest way to think about this: The commitment that was made was that you would pay what you can afford each month towards the debts. The £600 is an additional income in one month, this will inflate, for that month, your affordability and should technically be paid to the TD for the benefit of your creditors.

However, if you can demonstrate that the funds are required to assist with the purchase of a replacement vehicle (and that use of the vehicle is a necessity), then your Trustee may well allow your wife to keep the £600 on the condition it is used to aid in the purchase of the vehicle.

I would definitely recommend that your wife disclose the additional income, then it would be at their discretion as to whether they allow her to retain it or if they require it to be paid in.

All a moot point if your wife is not subject to a Trust Deed of her own

It's two trust deeds.

Mentioned in a previous post.

Thanks TDA 🙂