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Scottish Trust Deed Forum
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Topic starter
27/03/2011 5:40 pm
I am a few months away from finishing my trust deed. My friend died and as she had not long taken out a pension, there is about 2 years to run on it and she left it to me. I have had to take legal advice as I am the executor of her will and she did leave loads of debts but no money to pay them. My solicitor has advised that the pension lies outwith the estate and so I can keep it. Do I have to declare it to my trustee. There is no lump sum option. At the moment, the pension is being paid to me and I am transferring it to a separate account until things are clearer. Any advice appreciated.
27/03/2011 6:55 pm
Hi,
Sorry to hear about your friend passing away. Welcome to the forum.
I am no expert but I imagine the monthly payments will have to be taken into consideration at the next review, but I would suggest you declare it straight away.
Because there is no lump sum option you will not have to pay anything up front. But because this is a new income for you, over and above what you earn/pay now, you will have to pay the full amount into the TD because you can now afford to pay more.
The lucky thing is you only have a few months left on your TD so you will be able to benefit from your friends generosity soon.
27/03/2011 7:08 pm
Hi there
scotslad is correct. Your contribution will be reassessed due to the pension income and most likely this will lead to an increased payment.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
27/03/2011 8:16 pm
Hi Scotslad and Mark - thanks to you both for your advice. I will contact my Trustee and advise them.
Topic starter
27/03/2011 8:18 pm
Hi - sorry, just a final question. Could the Trustee extend my Trust Deed because I will be receiving this extra income for several months after my TD will end?
27/03/2011 8:21 pm
Hi there
It's unlikely, however if you have been in receipt of this for a while and didn't disclose it, then there's a slight possibility.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
27/03/2011 9:01 pm
Hi Mark, as Queenanne has been putting this money aside could she pay that money to ensure her TD is not extended?
27/03/2011 10:43 pm
Hi Scotslad.
I think you make a good point. If extra payment is required and backdated, and the money was handed over, there would be no reason to extend the trust deed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
27/03/2011 10:43 pm
Hi - I also do have a legitimate legal reason related to my friend's will, for not declaring it immediately (it only started 2 months ago) as I had to take the legal advice which I only got word on last week. That would surely have a bearing on things?
27/03/2011 10:53 pm
Fair enough, but if there are a couple of months accrued in a bank account then they may well ask for it.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
27/03/2011 11:05 pm
Absolutely Kevin. I hadn't thought there would be any other option. The point I was making is that there was a delay in telling them as I had to wait for legal advice.
27/03/2011 11:09 pm
Hi queenanne26.
I think everyone would agree that the delay in declaring this change in your circumstances was entirely reasonable given the circumstances.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
27/03/2011 11:10 pm
Thanks to all for advice which has been most helpful. QA
