Trust Deed Amendment – All You Need To Know
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Are you looking for answers about trust deed changes? Do you want to understand how to make changes to your trust deed? You’re in the right place.
We know that being in debt can be a worry, and people often have questions about trust deeds. In fact, more than 170,000 people visit our website each month seeking advice on debt solutions.
In this simple guide, we’ll explain:
- What a trust deed is
- What it means to change a trust deed
- How to change your trust deed if your money situation changes
- The benefits of a trust deed if your income goes up
- Other ways to handle debt in Scotland
We understand how hard it can be to deal with debt. With our experience, we’re here to help you understand your options and find a way forward.
What does a trust deed amendment mean?
An amendment refers to the idea of making changes to your trust deed agreement.
This is when your trustee sends a proposal to your creditors. If your creditors agree, your trustee may change the terms of your agreement.
Someone may wish to make an amendment to their trust deed for a number of different financial changes, including:
- Your income may increase/decrease.
- Your allowed benefits may increase/decrease.
- You may receive an unexpected lump sum/inheritance.
What type of amendments can I make to my trust deed?
You could be allowed to make trust amendments, only if your creditors agree.
These amendments could include:
- Increase in monthly payments in case you want to pay off your debt early.
- Decrease in monthly payments if your financial situation has worsened.
- Changes in the case that you have received a bonus, lottery, or a windfall.
- In case you are unable to make payments to your third parties. You could be allowed time redemption.
- If you want your trust deed to become protected.
Your trustee could send written documents to your third party to review the terms of your agreement.
Can I make amendments if my financial situation worsens?
Your amendment may take place if your income has decreased, as this forum user has experienced:
Your trustees will evaluate your financial situation and provide instructions in accordance with the problem.
A document containing your trust amendment clause could be sent to your creditors; if your creditors agree, your monthly payments could be reduced.
Moreover, you could also get a redemption from your payments.
In case you are made redundant, your trustee could be able to vary the terms of your deed in your favour.
However, if you voluntarily apply for redundancy, it could create complications for you. In this case, legal decisions could be taken against you. Moreover, you could be deprived of your own assets.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
Monthly income | £2,504 |
Monthly expenses | £2,345 |
Total debt | £32,049 |
Monthly debt repayments
Before | £587 |
After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
Can my amendment deed change if I receive a windfall?
This depends on the amount of money you have received.
In the case that it is greater than the amount of money you owe to your creditors, it could be used to cover your debt payment. This way, you could be discharged from your deed earlier than expected.
How will my trustee help with my amendments?
Your trustee plays a vital role in your deed agreement, and they are tasked with three essential jobs when it comes to amendments:
- Advise you about your amendment clause:
This means your trustee will help you understand how the changes in your deed will impact you. Moreover, your trustee will ensure that you are satisfied with the agreed terms.
- Act as your Nominee:
After your budgets have been approved, your trustee will convey the terms to your creditors. Your trustee will ensure that a mutual agreement is agreed upon. Moreover, your trustee will inform all third parties about the changes made.
- Supervise your amendment clause:
Your trustee will ensure all payments are made according to the changes. Further, they will remind you if you have missed any payments.
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Trust Deed Amendment Checklist:
Making an amendment to your trust deed can seem difficult and all-consuming. If you are thinking of amending the deed because of recent financial changes in your life, you will first need to:
- Gather the necessary documents ahead of time so they can be passed on to the trustee as soon as possible.
- Consult a financial professional to understand your rights within the trust deed and whether the amendment seems feasible.
- Make an effort to understand your own financial health. It is useful to check where you’re at financially once a month, including how much debt you have left, how much your essential living is costing, and whether the trust deed is still appropriate for your level of income.