Hi again Fredblogs,

Do you have any assets such as a property or any life insurance policies in place?

Normally in a Trust Deed if you die then your Trust Deed would be closed off. If you had assets such as a house or life insurance then the Trustee under the Trust Deed could have a claim over the house or any life insurance payout.

Often people thing the debts are passed onto family members but this isn't the case.

Hi Fredbloggs. The situation isn't really any different than if you were to die owing money and not in a Trust Deed.

In that case the executor of your estate would need to use whatever funds are available from your estate to pay your debts before anything remaining can be passed to the beneficiaries of your will.

It's the same in a Trust Deed except that the trustee becomes the go-between with the creditors instead.