Hi Delboy

This is a curious one, as the Trustee is discharged as well as you both.

However on signing the Trust Deed, the assets vest in the Trustee and therefore it would appear that this may still be under the Trustee's control, albeit he is no longer the Trustee.

I suspect the right thing to do would be to advise the (ex) Trustee who should use the funds to pay a further dividend to creditors.

Mark

thanks for that - not really what i wanted to hear but would it be the case that i would only have to give the trustee the surrender value at the date of going into the Deed ie: 6/05- we did that with another policy because we wanted to keep it going and my parents gave the surrender equivalent to the trustee?

sorry mark - just read my last response and didn't mean it to sound so sharp and to the point - like most people we went thro a lot of varying emotions going thro the trust deed and i am annoyed that this situation has arisen ( probably more angry at myself for letting it happen )-

your advise is appreciated

thanks again

Hi delboy

no problem,just back after a weekend away.

I think the value at appointment date is sensible, although there could be an argument for the full value.

Mark

thanks again Mark, hope you enjoyed your weekend - i was not really happy with my previous IP because of the time delay they put us thro for nothing so would be losthe to allow them further fee income - could i consult a solicitor and ask them to distribute the funds for us

Hi delboy

Cheers. It is certainly a strange situation. There is a facility for abandoning assets in Trust Deeds and this may well be a route to follow. My thinking is that the policy vests in the Trustee, but the Trustee is discharged (I assume) and therefore has no legal right to encash the policy and I suppose has no right to distribute as he would require to prepare a scheme of division as Trustee which he is not.

It's a strange one and unfortunately no definitive answer. The only legal route would be for the Trustee to be re appointed I suppose or for you to distribute the funds yourself.

Mark

Mark

hi, im new to posting too! my trust deed last payment was made on 15th september,now recieved letter from company telling me they are about to surrender my 2 life insurance endowments totalling ?ú3805. they never mentioned this would happen in all three years. Why now and can they do this without prior notice? thanks for any info.

Hi valw1406

Generally if they existed at the time of the signing of the Trust Deed, then they are regarded as assets. You should have been advised of this or had it confirmed in writing.

The Trustee has the power to surrender these as Trustee. Did you maintain payments throughout as I think this is perhaps unfair.

Mark

thanks for replying mark. Yes every payment was made and on time every month. i wasnt informed that this was a possibility. i have every letter they sent me and its nowhere! i dont mind payin it but it would now leave me with no life cover at all!

Hi valw1406,

I don't know if this will be any consolation but the trust deed itself should have no impact on your being able to get new life insurance policies in place if required.