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27/08/2026 3:55 pm
Hi, I'm looking for some advice I have a year left in my trust deed which was added due to me owning my home (still has a mortgage). I was made unemployed in June due to caring commitments for my disabled son and also became a single mum to both kids at the same time. My whole income is now solely benefits but when I called my trust deed they said they could make me sell my house and my trust deed would fail if I couldn't keep payments. I have read in here that they are not supposed to take benefits as income what would happen in this situation? I feel like this was something that I was lied into taking and at a very vulnerable time in my life I feel like they are threatening me with making me and my kids homeless
28/08/2026 8:55 pm
Hi Emma19567,
This must be a worry for you. Hopefully one of our qualified contributors can chip in. But what your describing is a material change in circumstances that requires you to have a full explanation of the options. You should approach your trustee again. If you get nowhere, look for their complaints process. If you still get nowhere you might need to approach their governing body and or the Accountant in Bankruptcy.
I hope you get the help you need from our contributors.
31/08/2026 9:21 am
Hi Emma,
In basic terms, your Trust Deed is split into two different parts:
1. A contribution from your income for a period of 48 months;
2. Realising the value of your assets.
It is true that if your income is 100% benefits, your Trustee cannot seek a payment from you towards the contribution (nor can they accept one offered voluntarily).
In terms of your equity, this will actually be a defined amount which is required to be introduced to the Trust Deed, by a defined date. From what you've described, the proposed strategy was 12 additional monthly payments of your original affordability. This will be shown in your Form 1B as "the amount of £x,xxx, payable by way of 12 monthly payments of £x.xx".
You will need to deal with the value of your equity, or the Trustee could seek to sell the property; or terminate your Trust Deed. If a third party is able to provide the equivalent sums, this would be fine. Alternatively, provided it is affordable, you can make payment of the equity instalments from the benefits income. The rules only prohibit a "contribution" being taken from benefits. Asset payments are a separate matter from contribution payments.
In summary:
Assuming the change in circumstances is for reasons beyond your control, your ordinary contribution should have reduced to £0 per month from when you stopped receiving private income. This should not cause your Trust Deed to fail, nor should you be expected to make up those payments.
However, you will still need to deal with the sums in respect of asset value, which can be met by a third party or paid directly by you (as the rules only prohibit use of benefits for contribution, not asset payments).