Hi AD

In short the answer is no. The view a trustee would take is that the payment would be regarded as income and they would therefore seek part of it as opposed to it all.

Mark

Hi A.D.

This seems like on of those situations where you probably shouldn't do anything before being told exactly what will happen (in writing) by your trustee in advance.

OK, thanks guys !
It was just as I suspected. Guess I will just have to wait until early next year when TD is completed !

Pensions do not vest with Trustees in a Trust Deed and therefore have no right to the lump sum. They only have a right to excessive pension contributions prior to or during the Trust Deed. You may however wish to utilise part o your pension to bring the Trust Deed to an early conclusion, if you wished to.

If anything, this issue has become even more complicated recently, AD.

There was a court case down in England a few months ago relating to a bankruptcy where the judge decided that a trustee could force the bankrupt to draw down their sizeable pension and seek payment of the resultant lump sum and extra income into the bankruptcy for the benefit of creditors.

Has caused a bit of a stooshie down there but it has set a precedent which is not being appealed. It remains to be seen whether this will start to happen more regularly, and whether trustees in Scotland will seek to do a similar thing.

I don't mean to scare you by saying this - I am not suggesting that there is any significant likelihood of this happening to you at all. However, you should tread very carefully before arranging to draw down a pension early if still in a trust deed as the funds could certainly be at risk.

AD as you say you've been in the scheme for 32yrs, a very long time, couldn't you carry on working for a few more months. Is it possible to take a holiday/break off work for a week or two to recharge yourself. There were times during my TD that I felt it was all too much, some time off helped me. Before you know it you'll see the finnish line in sight.

Good luck to you.

Thanks again folks.
The comments from Rob and Kevin seem to conflict with one another which makes me want to err on the side of caution. Not worth the risk !
And thanks for your comments too, Twizzle. I actually am already counting down the weeks and months to early next year, and as I said in a previous post, coming on here is so therapeutic as we all have a story to tell and advice to offer, so thanks again Twizzle.

Hi I am in debt with bank loans,credit cards etc.Altogether I owe £6000 approx.I have contacted a debt help firm who say a trust deed is the way forward.i am a 67 year old
OAP living in a council flat.The only asset I have is a car worth maybe £3000 .If I do
have a trust deed will I be left with enough to live on.Any help appreciated.I should say
as yet I haven't signed up to anything.

Hi garola

From the information, a Trust Deed would not appear to be the immediate answer. If you have no immediate assets, then sequestration may be the better option although it would depend on specific circumatsnces.

Did they advise of a monthly amount as there may be other options available. Also could you adviose me of your income.

Mark

Have they talked you through the various options, garola? If they are only telling you about trust deeds then your alarm bells should be ringing - it sounds like they may be working on their own agenda rather than on yours.

The Debt Arrangement Scheme (DAS) or sequestration may be viable options too.