Contribution
The client must sign an agreement, contained within the trust deed, to make regular contributions, or realise assets, or both, during the period of the trust deed.
1s168 B(S)A 2016The trust deed must state that during the payment period, the client is to pay any contributions from income for the benefit of creditors (including, where the client is an individual, any contribution required by the common financial tool) at regular intervals.
The payment period is:
•48 months starting on the date the trust deed is granted; or
•a period shorter than 48 months, as determined by the trustee; or
•longer than 48 months as:
◦determined by the trustee where there has been a period during which the client has not paid those contributions; or
◦agreed between the client and the trustee.
In calculating contributions, the whole of the client’s surplus income over the amount allowed for expenditure in the statement of the client’s income and expenditure supplied must be applied.
Note that contributions from a client cannot be taken from benefits only, but if there is a mixture of benefits and income, they can. However, the contribution amount cannot be any more than the earned income.