Welcome to the forum Charmil6. I’m very sorry to hear of your diagnosis.

If the insurance payouts are coming to you, I can see no obligation for you to settle your wife’s trust deed.

Your trustee is highly likely to require that the money is paid into your trust deed. If enough has been paid into your trust deed, including what you have already paid, it can end early and you’ll receive any surplus.

Unfortunately it won’t just be your initial debt total that needs to get cleared. There will be trustee costs and fees, plus interest on the debts, to be added as well. Your trustee should be able to give you an estimate of what this will add up to altogether.

Hi thank you for your reply. Those are the quotes from the trust deed including all fees. So are there any timescales for the surplus to be returned and when it is can it be put into joint account or would I need to open new sole bank account. Any other things I should consider or things that might prevent this from going smoothly?

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Originally posted by TDA (Debt Adviser)
[br]Welcome to the forum Charmil6. I’m very sorry to hear of your diagnosis.

If the insurance payouts are coming to you, I can see no obligation for you to settle your wife’s trust deed.

Your trustee is highly likely to require that the money is paid into your trust deed. If enough has been paid into your trust deed, including what you have already paid, it can end early and you’ll receive any surplus.

Unfortunately it won’t just be your initial debt total that needs to get cleared. There will be trustee costs and fees, plus interest on the debts, to be added as well. Your trustee should be able to give you an estimate of what this will add up to altogether.

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Hi again.

There is no set timescale; it’s just how fast your trustee gets the work done. You might want to ask them for a timeline.

Regards the joint bank account, this doesn’t feel like it ‘should’ be an issue. You might want to ask them to confirm this in writing, or just open your own account to avoid any confusion.

Hi Charmil6 and welcome to the forum.

Like TDA, I’m sorry to hear about your diagnosis.

Your Trust Deeds are separate and as it’s your health and policies then this has nothing to do with your wife’s Trust Deed if the claim on these policies is solely in your name.

As TDA has pointed out when it comes to settling a Trust Deed in full in needs to be the total debts, plus interest and costs. It’s something which is fairly easy to calculate and providing you pay this to the Trust Deed then the Trustee can commence with the closure and discharge of the Trust Deed. Once you have paid the amount required you should receive your discharge from the Trust Deed within 1-3 months. This is called a Form 5 Certificate of Discharge.

I’d speak with your Trustee and explain to them that you don’t want to be waiting 6-12 months for the surplus funds to come back to you. They should be able to give you a figure of what is required and then allow you to retain a proportion of the surplus funds in your own bank account to assist with your health.

In relation to your wife and her Trust Deed is she still able to financially pay her payments ever month as agreed? If so I’d suggest just continuing with this.

The main thing to ensure that things go smoothly is communication with the Trustee about everything.

Hi there thanks very much for your reply.

We were also wondering about what would happen to the house which is currently jointly tied into the trust deeds. Would my half of the equity be released and half stay with the trustee while my wife is still in the arrangement?

We have been having a bit of trouble with communication regarding our trust deeds as the call centre that deals with this area is based in Mauritius. We were also given conflicting information about what would happen in this situation.
So it’s good to gain some clarity.

Thanks.

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Originally posted by David Tannock
[br]Hi Charmil6 and welcome to the forum.

Like TDA, I’m sorry to hear about your diagnosis.

Your Trust Deeds are separate and as it’s your health and policies then this has nothing to do with your wife’s Trust Deed if the claim on these policies is solely in your name.

As TDA has pointed out when it comes to settling a Trust Deed in full in needs to be the total debts, plus interest and costs. It’s something which is fairly easy to calculate and providing you pay this to the Trust Deed then the Trustee can commence with the closure and discharge of the Trust Deed. Once you have paid the amount required you should receive your discharge from the Trust Deed within 1-3 months. This is called a Form 5 Certificate of Discharge.

I’d speak with your Trustee and explain to them that you don’t want to be waiting 6-12 months for the surplus funds to come back to you. They should be able to give you a figure of what is required and then allow you to retain a proportion of the surplus funds in your own bank account to assist with your health.

In relation to your wife and her Trust Deed is she still able to financially pay her payments ever month as agreed? If so I’d suggest just continuing with this.

The main thing to ensure that things go smoothly is communication with the Trustee about everything.

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Hi,

If you used the insurance money to pay off your Trust Deed in full plus interest and costs then nothing needs to happen with your share of the equity. The Trustee would only be interested in your wife’s share.

What was the agreement at the outset in relation to your house and the equity?

Ah ok communication might therefore be a little tricky. Under these circumstances I would suggest corresponding in writing via email to ensure you get correct and accurate advice based on your situation. Doing things in writing will normally ensure someone more senior and qualified reviews this.