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Scottish Trust Deed Forum
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Topic starter
29/03/2016 4:03 pm
Hi
I've been following the PPI question in relation to the re-opening of some peoples TD. (This does not affect me as I always steered clear.
From what I can gather this is only happening where it has been a pre-existing asset at the time of signing up.
When I entered into my TD I was (and still am) a member of a final salary pension scheme. There was never any discussion about the pension and I continued my contributions into this as normal.
I won't be retiring for at least 20 years but it has got me wondering, when the time comes, if I opt to take a reduced pension and take a tax free lump sum, could part of this be treated as pre-existing asset by my former trustee?
29/03/2016 5:50 pm
Hi downandout.
Pensions are usually looked at really quite differently to other types of assets when it comes to personal insolvency. This is even more particularly the case where nothing has been drawn from the pension prior to discharge from insolvency.
I really don't think you have anything to worry about here.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
30/03/2016 9:20 am
Pensions are specifically exempted from being classed as assets that are available to a trustee in Scotland, so no need to worry. An important question though, so thanks for asking it.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
01/04/2016 6:37 pm
Thanks TDA and Kevin
I can look forward to retiring now!
02/04/2016 12:50 am
That's right downandout.
Only 20 years to go!
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
29/04/2016 9:51 pm
Possibly covered elsewhere but Ill ask in any case.
Would it be possible to retire early using a pension for income before the trust dead ends? Also if the pension isnt classed as an asset is amy lump sum from it (tax free or otherwise) classed as a windfall? Thanks in advance.
29/04/2016 10:53 pm
Can I ask why pensions are not classed as an asset in a trust deed?
01/05/2016 4:30 pm
It's typically the case with all types of personal insolvency in the UK tinsoldier, provided that the cash remains tied up in that pension.
Whether that position may be weakened over time due to increased pension freedoms remains to be seen.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
