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Scottish Trust Deed Forum
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Topic starter
27/06/2018 4:09 pm
Hi Guys
sorry for my first post being a question but i cant seem to find any info on the internet.
I split with my partner about 3 years after buying a house together, part of the purchase of the house was a loan from my brother of £10000.
After my partner and i split we signed a Minute of Agreement which stated that upon the sale of our house my brother would be paid back what we owed him (around £6000)
A month or so later i entered into a Trust Deed which became protected in January 2018.
We are just about to finalise the sale of our house and having spoken to my trustee he has stated that they will not honor the Minute of Agreement i signed with respect to my brother and therefor he would not receive any money from my side.
Obviously i am concerned as it stands my brother is loosing out on money he loaned us in good will.
Can anyone give me advice on this? Does a trust deed trump the Minute of Agreement i had signed already?
Due to the Minute of agreement being in place before the trust deed was setup do they not have to take that into consideration?
I am very confused and upset that someone who did something so kind could lose out here.
thank you in advance
27/06/2018 4:37 pm
Hi tehvlb and welcome.
We can't offer you legal advice, you'd need a solicitor for that I'm afraid.
I'm not particularly surprised to hear your trustee's position on this though. From what I understand I don't think your brother has a legal charge on the property and your trustee is obligated to raise what they can for your creditors based upon your share of the asset.
It may be that you need to repay your brother via a different means, if and when that becomes possible.
Sorry that this will not be a viewpoint that you'd have wanted to hear in response to your question.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
28/06/2018 8:13 am
Hi tehvlb
I agree with TDA - it would be surprising if the trustee honours the minute of agreement although perhaps there is some sort of negotiation with the trustee.
I would perhaps run it past a solicitor.
As the terms of the minute of agreement were not implemented before signing the deed (i.e the house was not sold) then the trust deed would take priority over any minute of agreement.
Your brother would be entitled to rank as an ordinary creditor in the trust deed estate and would receive a dividend during the process.
Sharon is no longer posting in the forum.
