Hi gresgow.

I guess the answer might depend on the context. Could you give a little more detail and background?

Not sure if this answer will fit the context but, in simple terms:

1 - A third party can make a contribution in lieu of a responsibility that someone already has to their trust deed. This might satisfy the responsibility. For example a ?ú5000 payment in lieu of equity in a property paid by a third party.

2 - A person in a trust deed who has come into a lump sum personally (probably) has to pay it into the trust deed anyway. Therefore the sum wouldn't be seen as being in lieu of, or satisfying in any way, an existing responsibility to the trust deed. For example you inherit ?ú5000 while in a trust deed. You have to pay the ?ú5000 into the trust deed, but in this scenario it wouldn't clear a ?ú5000 liability for equity that is also part of a trust deed.

Hi gresgow

The difference is that if your in a Trust Deed and inherit enough to pay the trust deed off, this is seen as a new asset and you will need to pay this in addition to the agreed contributions.

However if there is no bonus or payrise etc and the funds are from a 3rd party, then this can be used for early settlement of a Trust Deed.

Hope this is ok

Mark

Thanks Mark and TDA for the replies. One question, maybe you have already answered it and I missed it although I think I may know the answer. If my trust deed over 36 months is to realise an amount in the total of ?ú5000. Is there any difference if I inherit ?ú2000 (for the sake of discussion)and put this towards my trust deed and a
friend/relative offering to contribute towards my trust deed the same amount.

Hi gresgow.

I think if you inherit ?ú2000 you have to pay it into the trust deed. That would be in addition to the original commitments to the trust deed that would have added up to ?ú5000 (i.e. you're now contributing ?ú7000 in total).

If the Trustee was agreeable (and without you receiving an inheritance of ?ú2000), a friend might choose to pay ?ú2000 into the trust deed that could be deducted from the ?ú5000 commitment originally made (i.e. you're now personally contributing ?ú3000 though the trust deed receives ?ú5000 in total).

Thanks TDA for the response - that was the scenario that I was getting at.

Is this not open to abuse then. If I bought a scratchcard and won ?ú2000 (I'm obsessed with this amount)is it not possible to ask a friend to collect this on my behalf and for a nominal reward (it's only fair) ask my friend to then contact my trustee and advise them that they wish to contribute a lump sum towards my trust deed or are there any safeguards in place for trustees/creditors.

This is only hypothetical I can assure you.

Yes... to a degree I suppose that the process could be abused gresgow in that type of circumstance. Of course there could be consequences if the truth were to come out later.

Like in many other areas of life, there has to be integrity shown by each party to a protected trust deed in addition to the controls/processes that are in place.
I do understand that this is being discussed hypothetically (and I'm glad that it is, I'm sure many people reading this will have wondered about similar scenarios that might arise) so please don't read anything negative into my use of the word "integrity".

I seem to remember Mark sharing a story about a lottery winner some time ago...

Yes, bit it wasn't my win. Hence the reason I'm up at 7.20am on a Thursday!

Boooo!