Welcome to the trust deed forum shaz41.

The first thing to say is that you should be able to keep the statutory element of any redudancy payment even if it is disclosed to your trust deed company. Depending upon how long you've been with your employer this could be a decent sum.

As part of the review process of your trust deed you may be asked to provide payslips and other salary documentation, and you may be asked to provide bank statements. Both would evidence any redundancy payment made to you.

The consequences of discovery that you had failed to disclose such a payment could be serious for you. That would be a real shame given that by March or April you will be so close to having completed your trust deed.

Hi shaz41

If you don't declare the redundancy payments that you receive you run the risk of the trustee petitioning for your sequestration. This would potentially mean that you have to pay a contribution for a further three years! As TDA states you are entitled to keep the statutory element.

Considering you would only have about 6 months to run on your Trust Deed, is it really worth the risk?

Julie

thanks to you both for prompt reply, am actually enquiring on behalf of family member. have advised her today and she is definetly going to advise trustees as you both say not worth the risk. thanks again. do you know if she got approx ?ú20k has worked for 21 years, and is age 63 (retirement age), how much are they likely to take. Assuming she might not get another job.

sorry another question. once i pay requested amount from redundancy, would this be end of trust deed, would it then be wound up, or would i still have to pay monthly amount until 31 oct. thanks

Hi shaz41.

I'm afraid that I wouldn't be able to speculate on how much the statutory of redundancy payment would be. Perhaps the relevant HR department or trade union might be able to advise? This should be hers to keep.

Any extra paid because she has beneficial terms in her contract, or through negotiation with her employer for example, would be the amount paid into the trust deed.

This extra payment into the trust deed would not shorten the trust deed necessarily, though given it is so close to being finished I suppose there may be some flexibility if a failure to get new work, or a shift to a reduced pension income, made ongoing future contributions unaffordable.