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Scottish Trust Deed Forum
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Topic starter
24/03/2014 7:57 pm
Hi All
I read Mark talking in another post about Section 32 (6) in relation to the acquisition of assets / inheritance etc.
Can someone please help me to understand the following :
If I am discharged from my Trust Deed but my IP is still in office, what rights does my IP have over any windfall during this interim period. IE : if I was discharged on the Monday and my Mum decided to give me £50,000 the very next day and I walked into my bank and paid off my mortgage in full that same day, would my IP have any claim over this money / increased equity??
Thanks all.
xxx
Topic starter
24/03/2014 8:05 pm
Hi. If it is the Bankruptcy Scotland act Marl was referring to, then I've had a read and it refers to a "relevant" date. There is no explanation or definition of what is meant by a "relevant" date. Is the day after my discharge a relevant date? Thanks.
xxx
Topic starter
24/03/2014 8:07 pm
Apologies Mark, for calling you Marl! Typo. 🙂
xxx
24/03/2014 11:55 pm
No problem, I've been called far worse!
In terms of the 32(6) relevant date relates to the time between the trustees appointment and the individual's discharge. So if you were discharged and won the lottery or you were given a gift as described, then it would not come under the control of your trustee. However if you paid off your mortgage, then technically you have increased the value of an asset which existed at the time of signing and which your trustee retains an interest, so the trustee could lay claim to the vastly improved equity.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
25/03/2014 1:45 pm
Thanks Mark,
xxx
25/03/2014 9:04 pm
Mark, in theory does that mean if I reduce my mortgage by say £10k over the next three years, before my Trustee is discharged then he can come back for the £10k equity I have created?
Doesn't seem right. I was under the impression that the interest in the property was discharged at the same time that I was. I was discharged in January there.
25/03/2014 9:12 pm
Hi CIF
No, the trustee retains an interest in assets which existed at the time of signing. If there was an increase in the value of that pre existing asset then the trustee is technically entitled to it if the increase takes place before his discharge unless there is something set in stone to exclude this.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
25/03/2014 9:17 pm
Right getting slightly worried now.
What was the purpose of the £500 equity buy out then? My covering letter that came with the discharge states that Notice of Inhibition has been recalled.
I was under the impression the £500 was purely to ensure a scenario such as the one I asked about doesn't happen!
25/03/2014 9:21 pm
Hi CIF
That's what I meant about the set in stone part. If there is a pre existing agreement and you are referring to a general increase in value/decrease in mortgage through normal payments etc, then there will be no problem.
The key is having an agreement at the start.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
25/03/2014 9:22 pm
Phew - thanks Mark.
25/03/2014 9:32 pm
No problem. Like most things, there's the usual technical arguments, but if there's an agreement in place as you say, then you will be fine.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
