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Scottish Trust Deed Forum
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Topic starter
06/12/2009 1:10 pm
Morning All,
I entered into TD arrangement 6 months go. I have now been offered an early retirement package which includes 20k redundancy lump sum, 40k early retirement lump sum and 13k annual pension. I currently earn 29k and this basically would only cover the salary I would have received if I continued working until I was 65.
Can you please advise :
(1)Who + what do I need to advise of this potential change in circumstances ?
(2)What elements are likely to involve me paying more into the TD ?
(3)If my retirement was delayed until after TD was over would I still be liable to pay over any of this money ?
(4)Any other advice that you would consider relevant would be much appreciated.
Many thanks.
Sparkovic
06/12/2009 3:16 pm
Hi Sparkovic
Re your questions:
1. If there were changes as you describe, there is a requirement to notify the Trustee.
2. Pension payments and annuity payments are exempt per se. However the Trustee can seek a contribution from both.
3. Technically no as the Trust Deed would be discharged.
4. Nothing immediately springs to mind. You need to decide the best option.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
08/12/2009 5:01 pm
Many thanks for this but could I also clarify the following :-
(1)My trust deed debt is 8k + I contribute 200/mth - could I have to start paying interest on this or is worst case scenario I have to pay only up to the 8k + could this go up with the Trustees Fees ?
(2)If my pension lump sum + annuity is not considered - is my redundancy lump sum liable to be taken into account ?
08/12/2009 11:02 pm
Hello sparkovic
I must say I am surprised that you were advised to enter into a trust deed based on ?ú8k debt - at ?ú200 pm you could have repaid the debts within 40 months anyway so a trust deed would seem a bit unnecessary. However, to answer your questions:
1) The maximum you would pay would be the trustees fees and outlays plus the debt plus interest on the debt.
2)The statutory element of your redundancy lump sum is not taken into account, but your trustee could seek any additional contractual redundancy payment - ie anything over and above the minimum redundancy entitlement you must be paid by law.
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