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Scottish Trust Deed Forum
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Topic starter
23/08/2010 12:30 pm
I have contacted my trust deed provider and asked if my pension lump sum will be taken when I retire next year (my trust deed does not finish til December next year) and the answer I got back was 'no occupational pensions do not vest in your trustee' pardon me for being thick but does this mean they won't take my lump sum? I'm scared incase I get the wrong end of the stick here!
23/08/2010 12:59 pm
I'm not 100% clear on this question Lorryjo1983.
As you have been informed any funds in pensions are almost always not included in a Trust Deed.
However I'm not sure if that changes if you actually choose to take the lump sum element during the course of a Trust Deed.
I'm sure one of the experts will clarify the position soon. In the interim do you actually have to take the lump sum when you retire or can you wait until after the Trust Deed is completed and closed?
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23/08/2010 1:20 pm
You are right Lorryjo1983, you should get to keep the lump sum. The rules for trust deeds would mirror those of sequestrations and occupational pensions are specifically excluded from vesting in your trustee, including lump sums.
The only exception might be if you had specifically offered to pay across your lump sum or part of it as part of your trust deed proposals to creditors, eg in order to get a trust deed agreed by creditors in the first place.
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