Hello stressedmum. Welcome to the trust deed forum.

If someone you know is prepared to pay a sum into your trust deed that will clear your remaining responsibilities there's a good chance that it could be ended early.

I'd want that clarified in writing in advance though. Probably it will be best to call and talk this through with your contact at this stage.

I'd also strongly suggest that you avoid receiving such a gift then offering to pay it off yourself. There's a major risk you'll have to pay over the value of the asset you have acquired (the cash) and carry on with the agreed monthly trust deed payments as well. You'd want the third party to make the payment rather than you if it will be OK to bring the trust deed to an early close this way.

Thank you. Would this apply if being left a part share in a house? Or would house have to be valued. Sister lives in house so sale would be difficult.

That might be different stressedmum.

Have you come into a share of this house as part of an inheritance?

mumwants to split house between me and sister, and sister saying she will buy 'my' half (though not mine yet).

If you come into assets of value during your trust deed you'll almost certainly have to pay them over stressedmum and carry on making monthly contributions. If your mum grants you ownership, your sisters position could become very difficult unless the full value of the asset you have acquired could be paid over.

You may, as an alternative, be able to speak to your trust deed company about your mum or sister paying a sum into your trust deed that completes your responsibilities. You'll want to be very careful about acquiring the asset itself though.

If your sister is willing to buy your half may I suggest that your Mum signs over the house solely to your sister and your sister pay off your TD instead of buying you out of your half? - but check that this would be possible before doing anything. Approach it as a hypothetical situation with your Trustee before hand and get their take on it.

Receiving the asset while in a TD would cause way more issues than its worth for you and your sister...

Hi Guys,

Just been reading this thread and was getting curious about this. Is the level of debt that existed when entering a TD plus the trustees fees all that you are liable for when in a trust deed? So if you came into some money which then acquired by your trustee and the value was greater than the level of debt you had, would this cancel out the TD?

Hi SkintAlly.

That's broadly correct. It comes down to the principle that a trust deed only ends up writing off debts that you cannot afford to repay during the term.

The most you'd have to pay would be:
1 - The total of debt at the start of the trust deed.
2 - Interest on those debts.
3 - The fees and outlays associated with the trust deed.

If you came into a sum greater than the amount above (which would also include any monthly contributions made to that point) any surplus would come back to you and the trust deed would be ended.

So if mum di split house and i had to have it valued, would there be an expectation that the house would be sold or sister would have to pay half market value? what would happen then if she refused to sell and i was left with half a house and still in TD? would i have to continue to pay until equity settled? and can mum put my name on deeds without me knowing?

Hi stressedmum.

I think you need to make your mother aware that it wouldn't be a good idea to make you the part-owner of this property at this time.

If you come into any significant asset during your trust deed the value is almost certainly going to have to be paid over. If it was a really big sum, which would take years and years to pay via monthly contributions, it's unlikely that your Trustee would be prepared to wait (or feel able to wait) and they may look to force the issue.

Hi Stressedmum,

As already said by the others, it would much easier for you just to ask your mum not to transfer any ownership of the property to you at this time. Can she not simply transfer it to your sister? I am sure your mum would be just as keen to prevent a Trustee getting their hands on her money/assets! Does your mum know about your Trust Deed?