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Scottish Trust Deed Forum
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Topic starter
06/06/2015 1:48 am
Hi all,
I have paid a trust deed for nearly 3 and half years now approximately £11,000. Sadly my father passed away last year. I am one of the main benefactors to his estate. I have spoken to my TRust Deed and they say I may have to pay the full amount of original debt, £40,000 plus interest.Does the 11,000 I have already paid to this trust deed not get deducted from the 40,000? Is it right that I'm charged interest on top of all that? Also does the estate lawyer send this money direct to the trustee, why can't i get my inheritance sent to me and then pay the Trustee/Creditors.
As you will understand I'm pretty gutted about the whole thing and to top it all the TRustee also said my credit file would not be repaired for another 3 years even if my creditors were fully repaid.How unfair is that?
06/06/2015 9:38 am
Welcome to the forum iggsy. I'm sorry to hear of your loss.
If sufficient funds exist, your trustee will need to collect:
1: The total of the debts owed.
2: Interest on those debts.
3: The fees for the trust deed.
Anything you've paid already will count towards that total.
In terms of payment arrangements, it's best to check with the estate lawyer and your trustee how they want that handled.
A trust deed stays on your credit file for six years from the start. I'm afraid fully repaying the debts cannot alter the entry made when your trust deed began - it's just a record of what happened. I do understand why you perceive this to be unfair though.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
08/06/2015 10:39 am
Sorry for your loss, Iggsy.
The vast majority of Protected Trust Deeds result in a proportion of debt being written off. I'm afraid it looks like this is one of those less common scenarios when you may well have been better off not having gone into the Trust Deed in the first place because of the lump sum that will be paid out. With the benefit of hindsight you may have chosen a different option and may have had more of your inheritance left over after paying off your debts.
Unfortunately it can be very difficult to foresee this kind of thing happening.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
