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Scottish Trust Deed Forum
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Topic starter
16/04/2018 6:21 am
Hi all,
I'm halfway through my trust deed at the moment. I'm studying a degree and working weekends driving trucks. All is good, decent wage coming in and the trust deed is being paid.
I have recently been getting a few trips offshore again though, which pays rather well. My plan is to set up a limited company and put any offshore work through that. Therefore there is a potential for the limited company to have a not too bad equity in two years time.
Let's say it has 40k in the bank, if I'm the majority shareholder, how much am I going to have to relinquish to the trust deed at the end of my agreement?
16/04/2018 9:30 am
Hi stu1382
Any assets that accrue during the course of your trust Deed potentially have to be realised for creditors, which could include the full amount of the value of your shareholding in a limited company.
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Topic starter
16/04/2018 10:22 am
Hi Kevin
Thank you for a quick response.
That's what I was afraid of. What if I had next to zero shares in the company and someone I trusted had the majority, is it only the shares that I own that can be claimed by the creditors?
16/04/2018 10:32 am
Hi stu1382.
From the perspective of the debt professionals answering questions on this site, I hope you can understand that there are challenges associated with advising someone on how to keep their earnings away from their creditors and trustee.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
16/04/2018 4:27 pm
Hi TDA
I think you have misunderstood my query. I am in no way attempting to hide money or defraud my trust deed. I'm merely enquiring what will happen to the equity of the Limited Company at the end of the trust deed.
Me, as the director of a company, can legally hold all or zero shares in said company. This being an advice forum, I thought would be a sensible place to enquire about all this?
16/04/2018 4:31 pm
I think your question is answered by Kevin's response above isn't it stu1382?
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Topic starter
16/04/2018 4:35 pm
Not entirely! There was the second question regarding the shares. Don't worry, I have found the answers to my questions elsewhere and will not be using this forum again!
16/04/2018 5:00 pm
No offence was intended stu1382.
Kevin's answer specifically stated "your shareholding".
A question that a trustee might ask themselves is, if you have set up a limited company where the sole source of income relates to your own work, why have shares been given to another person. To put it another way, for what purpose have you given away shares with the effect that you've become entitled to receive a reduced income from your own labour.
They might also ask, if those shares had value, whether they had been given away at below their true value. If they hadn't been given away at below their true value, they might ask what had happened to the proceeds from selling the shares.
The questions may or may not cause you issues, depending upon the facts and the conclusion reached by the trustee of course.
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