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Scottish Trust Deed Forum
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Topic starter
23/02/2011 11:04 am
Hi, I wondered how being discharged from a trust deed actually works?
My husband is in a trust deed and I know at the end you are discharged but what does the trustee do/take in to consideration when granting discharge?
I have written previously that my husband is due a small inheritance, it wont be through for at aleast another few months but what happens with that? Does my husband tell the exectuor to call his trustee or will they somehow automatically know about the inheritance by checking some sort of records. Does my husband have to hand this money straight to them or can he pay it at the end of his trust deed (they get 100%). We have alot of maintenance problems in our house(roof, heating) which we dont have the money for and there is no leeway with the trust deed financially to find the money for, but the inheritance would pay for this and my husband is very reluctant to hand this money straight over to the trustee.
x
23/02/2011 12:03 pm
Hi gillianr2.
The Trustee will want to confirm that all obligations to the trust deed have been completed before allowing the trust deed to be brought to an end. This would include monthly contributions, any contributions in lieu of assets known about at the start of the trust deed, and any contributions that become due because of assets that have been acquired during a trust deed.
Your husband should inform his Trustee of the inheritance and it will be taken care of according to the requirements of the Trustee from there. They may be open to some flexibility in this respect but it needs to be remembered that they have legal obligations to the creditors.
I can certainly sympathise that, with the need for repairs, there is a reluctance to hand the money over. However I'd still advise notifying the trust deed company as there may be serious consequences later if the Trustee became aware of an inheritance that he/she hadn't been made aware of as it should have been (in line with the original trust deed agreement).
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Topic starter
25/02/2011 3:10 pm
Thanks for that. It is hard to think that if it was me that inherited it then it wouldn't matter but because it's him it does, but we have to respect the td and that's that. Thanks again
