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beefybrown156
New Member

4 Posts

Posted - 09 October 2021 :  10:03:01  Show Profile  Reply with Quote
Iíve finished 4 years of my TD and had an additional 12 months to pay equity in my house. I have 2 payments left of the equity stage.

I have just received a small inheritance cash which still hasnít been sorted yet but also part ownership of a property which may take even longer to sort.

My question is as Iím in the equity part of the trust deed do I inform trustee and or what happens.

To complicate things my spouse is in the discharge process and will this affect her.

TDA (Debt Adviser)
Trust Deed Expert



13824 Posts

Posted - 09 October 2021 :  16:43:30  Show Profile  Reply with Quote
Hi beefybrown156 and welcome to the trust deed forum.

In general terms, if you come into assets or money during a trust deed then they will be used to help repay more towards the creditors. This is on the principle that a trust deed only writes off the debt that you cannot afford to repay.

However, I think the precise wording of your trust deed might be important here. These aren't entirely standard documents and can vary from case to case and from firm to firm.

I have read here (in previous threads) that in some instances windfalls like yours may not have to be gathered in by the trustee after the legal minimum four year term has been completed.

You do have an obligation to inform your trustee. They'll be able to inform you where you stand in terms of the legal agreement that you originally entered into with your creditors.

You might also want to read the documentation yourself to see what's included there that is relevant to the situation that you're now in.

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Kevin Mapstone
Trust Deed Expert



4021 Posts

Posted - 10 October 2021 :  17:01:58  Show Profile  Reply with Quote
You should be fine, beefybrown156. The legislation is pretty clear that the Trust Deed should state that you have an obligation to hand over any assets/windfalls that are acquired by you within the 4 years beginning with the date the Trust Deed is granted. If more than 4 years elapsed before you received the right to this inheritance then you should not be required to hand it over.
If your trustee reckons differently then you should ask for a copy of the Trust Deed you signed, check the wording and seek legal advice.

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Paul McDougall
Trust Deed Expert



133 Posts

Posted - 11 October 2021 :  09:23:08  Show Profile  Reply with Quote
I agree with Kevin although I would edge of the side of caution. Your right of the claim comes into effect on the date of death not when you receive the sums under the inheritance.

If your loved on passed away after the 4 years, then Kevin is correct however, if they passed away during the 4 year acquirenda period of the trust deed then your trustee could argue it forms part of the estate.

p

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Edited by - Paul McDougall on 11 October 2021 09:24:00
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beefybrown156
New Member

4 Posts

Posted - 11 October 2021 :  10:45:51  Show Profile  Reply with Quote
I have been up all night for days looking through forum and internet. Ifmy wife fails the discharge process what to I do. Also what If I do the debt we owe is large. Help
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TDA (Debt Adviser)
Trust Deed Expert



13824 Posts

Posted - 11 October 2021 :  10:59:38  Show Profile  Reply with Quote
Hi beefybrown156,

If it's just you who has inherited this money and property then it shouldn't really affect your wife's discharge.

Did the individual that you have inherited from pass away before your trust deed reached the four year point?

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beefybrown156
New Member

4 Posts

Posted - 19 October 2021 :  09:22:53  Show Profile  Reply with Quote
We are really lost. Itís a lot more complicated than we ever imagined. We are trying to talk to someone today. This isnít going as it should. We never fully undo how this worked and During the term we now realise we made grave errors doing this. I canít explain till we receive letter of discharge which we know wonít be successful. This has turned into a nightmare.

We may need to sell house or more.
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beefybrown156
New Member

4 Posts

Posted - 19 October 2021 :  09:46:13  Show Profile  Reply with Quote
We are really lost. Itís a lot more complicated than we ever imagined. We are trying to talk to someone today. This isnít going as it should. We never fully undo how this worked and During the term we now realise we made grave errors doing this. I canít explain till we receive letter of discharge which we know wonít be successful. This has turned into a nightmare.

We may need to sell house or more.
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TDA (Debt Adviser)
Trust Deed Expert



13824 Posts

Posted - 19 October 2021 :  10:04:03  Show Profile  Reply with Quote
Hi beefybrown156.

Sorry to hear that this is causing you so much worry.

Have you learned more since you originally posted?

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Paul McDougall
Trust Deed Expert



133 Posts

Posted - 20 October 2021 :  09:11:26  Show Profile  Reply with Quote
Beefybrown

If you wish to reach out for some advice over the phone then please hit the contact me button and I will be able to call you and provide advice.

p


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Edited by - Paul McDougall on 20 October 2021 09:12:36
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