Hello Lorryjo1983 and welcome to the Trust Deed forum.

Is the lump-sum paid from your pension funds?

Yes, I have been employed for 20 years.

The rules regarding occupational pensions are the same as in a sequestration. Pensions, including any lump sum element, do not automatically vest in the trustee - ie would not normally have to be paid over, unless this was offered as part of the original trust deed proposals.

Your trustee has to review your income/expenditure after a change of circumstances, so would be entitled to seek higher contributions from you if you have more spare income each month, though I guess that would normally only be the case if you were continuing to work and receive a pension too.

Hope this makes sense.

Kevin

Thank you to both of you, I was unaware of such a website and I am so glad I found you! I don't think this is included but I will check the deed itself.

One last thing, my car is at breaking point, its so old that the repair bill creeps in every month and I am struggling to make ends meet. If I got a new car what would happen here? I would not be able to get credit, I know that, but with my lump sum payment I receive I was thinking of buying a new car.

Hello Lorryjo1983,

Hopefully Mark or Kevin will be able to share their thoughts on this question soon. My thoughts are that this would probably not be a problem.

I wouldn't have thought this would be a problem. However, you should run it by your trustee first just to be on the safe side...