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Just Joined

1 Posts

Posted - 09 June 2018 :  09:17:17  Show Profile  Reply with Quote
Over the last couple of years, I have had many a sleepless night over my debt but on the 25th May I signed my Trust Deed for £45k over 5 years. At first, I was relieved, hopeful that by the time I am 50 all my debt will be a thing of the past. I split up with my husband 2 years ago and have 2 children, 15 and 12. The debt was from the marriage, but I took the debt as all the cards and loan were in my name and it saved him from touching my good pension. The last year I have been living on about £400 a month to get me fuel, shopping and money for the kids. So now I am in a better position, well not really.

As much as I can't bear to say it, I can't see my parents being here in 5 years (Dad is 79 and Mum 70). My dad was diagnosed with lung cancer and heart failure back in November and my mum has psychomotor agitation. Last year I got them to check their wills are in place as they have an estranged son they have stated that everything should go to me if neither are here. Not that I think they have a lot of money, they do have a house which would sell for over £120k and there could be policies. I have had to tell them about the Trust Deed and explain to them that I now cannot inherit any money in the next 5 years. The trouble is they have no one else they can leave it to. I'm worried sick about this as it is not their fault that I got myself into this situation. My dad keeps saying "I've not worked all my days for all my money to get taken off you". If they were to be here in a couple of years could my son's name be used? He'll be 18 in July 2020. I’m sure they’re in the process of getting me power of attorney as well.

They have their lawyer coming out to them on Thursday, but I was looking for some advice before this.


TDA (Debt Adviser)
Trust Deed Expert

12746 Posts

Posted - 11 June 2018 :  09:13:54  Show Profile  Reply with Quote
Welcome to the forum cgillespie23.

I'm very sorry to hear that your parents are so unwell.

I'm no expert on this subject, but I don't think that there's any reason why your children cannot be beneficiaries of the will even if they aren't yet 18. The solicitor you mention will, I'm sure, be able to advise you properly in this respect.

Unless things have changed, I'm afraid I don't think you can have power of attorney while in a trust deed. There's several old threads on this forum to that effect.

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Sharon Toal
Trust Deed Expert

303 Posts

Posted - 11 June 2018 :  09:21:14  Show Profile  Reply with Quote

Sorry to hear about your situation.

At part of the Trust Deed, any inheritances acquired over the 4-year is automatically conveyed to your Trustee.

However, it is common for individuals that are writing a Will and that are aware of the Trust Deed, to ensure the proceeds of the inheritance are placed in Trust.

A Trust is a separate legal entity - the proceeds are not conveyed to the Trustee under the trust deed.

You will be unable to act as Power of Attorney whilst being subject to the Trust Deed process.

Your solicitor will be able to explain this in more detail.
Hope this helps.

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Edited by - Sharon Toal on 11 June 2018 16:15:37
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Kevin Mapstone
Trust Deed Expert

3649 Posts

Posted - 11 June 2018 :  11:28:00  Show Profile  Reply with Quote
I guess it is worth mentioning that if any inheritance is paid to you during the trust deed then it would not all be "taken off you" - only enough to clear the debts plus interest plus the costs of the trust deed. Presumably if you weren't in a Trust Deed there's a good chance you would choose to pay your debts off with any lump sum you received anyway?

That said, it is up to your parents who they wish to leave their money/estate to. If they would prefer for it to go into Trust for your son then nobody can argue with that and it would be perfectly safe from having to be paid towards your debts.

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