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Scottish Trust Deed Forum
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Topic starter
17/02/2011 10:45 am
Hi Guys
As a self-employed person, my life is controlled by the ebb and flow of cash. The monthly pay day doesn't come for us - every day either is a pay day or it's not. With the economy as it is, the ebb and flow is more volatile than normal although it does tend to even out in the long run.
So, this being the case, I was wondering if it's possible to be flexible with my monthly TD payment dates. Meaning, do my payments need to be on the same day every month (eg the 1st) or could I pay it as cashflow allows, as long as the payment falls in the correct month?
I'm not talking about missing months nor varying payment amounts, just the day in the month that the payment is made.
Thanks!
DebtFreeWannabee
17/02/2011 11:03 am
Hi DFW
In an ideal world the payments are by standing order and therefore on the same day each month, however I see no reason why this could not be dealt with as you describe, with you physically paying the amount each month.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
17/02/2011 11:08 am
Thank you Mark.
I was hoping that would be the case. To understand the technicalities, am I right in saying that the money just sits there in the trust account until the end of the TD, meaning the date it's paid in each month isn't really too important because nothing is being paid out on a monthly basis?
Sorry for the follow-up, just trying to understand how it works!
Cheers, and thanks again Mark.
DebtFreeWannabee
17/02/2011 11:36 am
Hi DFW
Yes, thats pretty much the case. Generally in Trust Deeds, the Trustee will wait till there is enough funds to pay an interim dividendnthly dividends would be almost impossible.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
17/02/2011 11:46 am
Thank you again Mark.
This is very useful information - gotta love this forum 🙂
Cheers,
DFW
19/02/2011 6:39 pm
I looked into a TD, but decided against it as I was also SE.
As far as things go you could set the TD to take funds out on the 28th of the month and pay in money as and when you can through the month
If you went ahead you could put a little extra by when you were busy to even out the trough
Mind you the times are getting worse, not better
Topic starter
04/03/2011 2:11 pm
I contacted my trustee and, as predicted, they were happy with the arrangement.
I guess the bottom line is that everyone involved wants your TD to succeed so there is some flexibility in how it runs. At least that's my experience, which is with one of this forum's preferred TD companies.
Cheers,
DebtFreeWannabee
04/03/2011 2:29 pm
Glad to hear that went OK DFW.
It is a little different for self-employed persons and good trust deed companies understand that.
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