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Scottish Trust Deed Forum
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Topic starter
22/05/2020 3:07 am
Myself and husband are both in a trust deed with 22 months to go (12 was extra due to being home owners.
Since having a child we are sorting out our life insurance and from what I gather if I’m the beneficiary of his should anything happen or vice versa then it goes to the trust deed and we could possibly be left with nothing, is this right? Should I put my mum as the beneficiary or my child?
Also - is it true that in the last 12 months payments can be made early to bring it to an end quicker.
Thanks 🙂
22/05/2020 9:50 am
Hi Penny1286,
Advising about insurance is a regulated activity (that we're not regulated to do) so it's difficult for us to make a specific recommendation about the beneficiary of a life insurance policy that you may take out.
A financial adviser could help you with this aspect. They can arrange life policies for you and give you the advice you need. Make sure they know about the trust deeds.
You are correct that, until you are discharged, if either of you came into money it could be used to help repay your debts (and trust deed fees/costs plus interest also).
Your trust deeds must run for a minimum of 4 years. Once you've reached that point your trustee may consider a request for a third party to pay over a lump sum to bring the arrangements to an end.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
