I appreciate you trying to keep it simple, but the details are going to be quite important. Were you named as the beneficiary on the life policy, besagemo, or was the payment made to your late husband's estate?

I cannot see any reason why either of these trust deeds should still be running over 5 years after they were signed - have you had any explanation from your trustee or your solicitor as to why this is the case? Is there an ongoing legal action connected to this?

the life insurance was joint so it came directly to me, with that i paid of our outstanding mortgage and other debts that remained in my husbands name. The trust deed company stated that the insurance was an income that i didnt declare but i did as i paid off my TD with it. The reason it has gone to a solicitor is that we are trying to argue the point that up to my husbands death we had no assets to our name so i should there for not be responsible for his side of the trust deed had he not of died we would still have no assets! I understand that now i may be liable for more intrest to be added but dont understand how i csn be liable for his TD. Also they cashed a my cheque in may 2009 and the money has been sitting in their bank claiming all the interest as they have not paid any money to my creditors.

I am not a lawyer, but I would say it comes down to whether this payout was technically your money or your husband's estate's money. I'd have thought that if it was a joint policy the beneficiary would be named as the surviving party, ie yourself. In which case I don't see that the trustee has any right to seek the funds for your late husband's trust deed. They can expect only your creditors to be paid in full, which it sounds like you have done.

However, I am saying this without being in possession of the full facts, so would be reluctant to give you this as a firm answer. I think engaging a solicitor was probably a good idea - preferably one who specialises in insolvency law though. I am unsure as to why it should take this long to clear up. Has your solicitor given you any timescale or an idea of what exactly the strategy is going forward?

Hi besagemo

There are a few things here which are difficult to be specific on without the full details as Kevin mentioned.

A decent lawyer is essential and especially an insolvency one. Two points I would make are:

Excluding estate issues, it looks as though as though this could be treated as acquirenda ie new assets acquired after the date of signing but before the discharge. In this scenario, the trustee has full rights to the payout from you as beneficiary.

On the death of your husband, there may have. Even a survivorship clause within the deeds which has the effect of transferring the whole property to you and therefore discharging this from your husbands estate.

I would certainly raise these points with your solicitor.

Mark