Trust Deed Forum - Limited company assets after Trust Deed
Trust-Deed.co.uk
Home Home Page


















Trust Deed Forum
Trust Deed Forum
Home | Profile | Register | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 Trust Deeds
 Scottish Trust Deed Forum
 Limited company assets after Trust Deed
 New Topic  Reply to Topic
Author Previous Topic Topic Next Topic  

stu1382
New Member

5 Posts

Posted - 16 April 2018 :  06:21:21  Show Profile  Reply with Quote
Hi all,

I'm halfway through my trust deed at the moment. I'm studying a degree and working weekends driving trucks. All is good, decent wage coming in and the trust deed is being paid.
I have recently been getting a few trips offshore again though, which pays rather well. My plan is to set up a limited company and put any offshore work through that. Therefore there is a potential for the limited company to have a not too bad equity in two years time.
Let's say it has 40k in the bank, if I'm the majority shareholder, how much am I going to have to relinquish to the trust deed at the end of my agreement?

Kevin Mapstone
Trust Deed Expert



3584 Posts

Posted - 16 April 2018 :  09:30:57  Show Profile  Reply with Quote
Hi stu1382

Any assets that accrue during the course of your trust Deed potentially have to be realised for creditors, which could include the full amount of the value of your shareholding in a limited company.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
Go to Top of Page

stu1382
New Member

5 Posts

Posted - 16 April 2018 :  10:22:18  Show Profile  Reply with Quote
Hi Kevin

Thank you for a quick response.
That's what I was afraid of. What if I had next to zero shares in the company and someone I trusted had the majority, is it only the shares that I own that can be claimed by the creditors?
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



12549 Posts

Posted - 16 April 2018 :  10:32:16  Show Profile  Reply with Quote
Hi stu1382.

From the perspective of the debt professionals answering questions on this site, I hope you can understand that there are challenges associated with advising someone on how to keep their earnings away from their creditors and trustee.


Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

stu1382
New Member

5 Posts

Posted - 16 April 2018 :  16:27:46  Show Profile  Reply with Quote
Hi TDA

I think you have misunderstood my query. I am in no way attempting to hide money or defraud my trust deed. I'm merely enquiring what will happen to the equity of the Limited Company at the end of the trust deed.
Me, as the director of a company, can legally hold all or zero shares in said company. This being an advice forum, I thought would be a sensible place to enquire about all this?
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



12549 Posts

Posted - 16 April 2018 :  16:31:18  Show Profile  Reply with Quote
I think your question is answered by Kevin's response above isn't it stu1382?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

stu1382
New Member

5 Posts

Posted - 16 April 2018 :  16:35:11  Show Profile  Reply with Quote
Not entirely! There was the second question regarding the shares. Don't worry, I have found the answers to my questions elsewhere and will not be using this forum again!
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



12549 Posts

Posted - 16 April 2018 :  17:00:08  Show Profile  Reply with Quote
No offence was intended stu1382.

Kevin's answer specifically stated "your shareholding".

A question that a trustee might ask themselves is, if you have set up a limited company where the sole source of income relates to your own work, why have shares been given to another person. To put it another way, for what purpose have you given away shares with the effect that you've become entitled to receive a reduced income from your own labour.

They might also ask, if those shares had value, whether they had been given away at below their true value. If they hadn't been given away at below their true value, they might ask what had happened to the proceeds from selling the shares.

The questions may or may not cause you issues, depending upon the facts and the conclusion reached by the trustee of course.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page
  Previous Topic Topic Next Topic  
 New Topic  Reply to Topic
Jump To:
Trust Deed Forum © 2008 - 2018 www.trust-deed.co.uk Go To Top Of Page
Snitz Forums 2000

(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.
Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.
Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.