A new trustee would be appointed and any funds available for creditors would either be shared out between the creditors or transferred into the possession of the new trustee.

So ALL your contributions would be safe?

I'm guessing depending on what stage, matbe none of the creditors started getting paid yet if your contributions have been too few to cover the set up fees and costs first?

Hi leeper1974.

You wouldn't be affected apart from a change of Trustee.

The money is ringfenced.

Even if the worst were to happen, the money is insured I believe.

Hi leeper1974

Despite what people think, trustees are legally required to set up individual trust accounts for every trust deed. Monies in trust deeds are paid to these accounts and these are separate from the trustee's own business.

So all in all, it's safe.

Mark

I wouldn't be that worried about the money you've already paid - for all the reasons that have already been given.

I'd be more worried about the kind of thing which you should get in writing at the beginning of any TD. Like how you're going to deal with any equity in your property.

So, if you had a gentleman's agreement with your original trustee that you'd pay tuppence ha'penny for the equity in your property, but didn't get ahything in writing, then the new trustee might pursue you for the full amount.