Trust Deed Costs and Fees in Scotland Explained

Start with the language

Contribution, trustee cost and creditor return are not the same number

The monthly contribution is what the debtor is assessed as able to pay after reasonable essential spending. Trustee remuneration is what the insolvency practitioner is allowed to take for setting up and administering the deed. The creditor return is what remains for distribution after fees, outlays and other estate costs have been dealt with.

Treating every monthly pound as direct debt repayment gives a misleading picture. Early receipts may be used substantially for administration costs, while asset proceeds can also enter the estate. AiB's prescribed consumer information says trustee fees come from the payments, with more reaching creditors over time, and that the fee does not itself change the payment the debtor has agreed to make or how long it is due. (AiB information document)

ContributionThe affordable payment assessed from income and essential expenditure.
RemunerationThe trustee's fixed fee, percentage and permitted outlays.
DividendThe distribution ultimately available to qualifying creditors.

Trustee remuneration

The statutory fee structure has several parts

Section 183 of the Bankruptcy (Scotland) Act 2016 provides for a fixed fee together with an additional percentage calculated by reference to assets and contributions realised. Permitted outlays can also be paid. The fixed amount and percentage must be disclosed in the protection paperwork circulated to creditors. (Bankruptcy (Scotland) Act 2016, section 183)

The phrase “fixed upfront fee” can cause confusion. It describes an amount fixed at the beginning of the administration; it should not be presented as an advance bill that the consumer must pay before a deed is set up. MoneyHelper says the Insolvency Practitioner should set up the deed without charging an advance fee. (MoneyHelper: Scottish debt options)

Ask for the complete remuneration explanation

A single headline fee is not enough. The proposal should identify the fixed fee, the percentage basis, expected outlays, any asset-related work and what could be charged if the deed takes longer or does not complete as planned.

Monthly payments

Affordability determines the contribution, not an advertised minimum

The trustee reviews income and reasonable household costs using the Common Financial Tool. The budget should reflect rent or mortgage, food, utilities, travel and other genuine needs, including disability or caring costs. What remains may form the contribution. Income-based contributions normally continue for 48 months.

AiB says affordability must be reviewed at least once a year. A contribution can rise or fall if income, essential spending or household circumstances change. The debtor therefore has to report changes promptly rather than assuming the first monthly figure is fixed for the entire deed. (AiB: changes in finances)

A contribution from protected benefit income is not permitted under current AiB guidance. Where no income contribution is available, an asset-funded deed may still require specialist assessment; that does not make an advertised “£0 monthly trust deed” a safe or meaningful promise.

Other money entering the estate

Assets can affect both administration costs and creditor funds

Monthly contributions are not always the only receipts. Home equity, savings, investments, a non-exempt vehicle, a third-party property payment or other asset realisations may add funds to the trust deed estate. Because percentage remuneration can be linked to assets and contributions realised, a more complex estate can cost more to administer.

The debtor must also tell the trustee about material financial changes, including inheritance or other unexpected money. The proposal should state how such receipts will be treated and whether property work could extend the administration. A homeowner needs a written explanation of valuation, secured borrowing, equity and any exclusion or buyout arrangement before signing.

Published figures

Statistics provide context, not a personal quote

MoneyHelper currently states that setup and management fees usually range from £5,000 to £7,500 and can be higher in a complex case. That is consumer guidance, not a statutory tariff or cap. The actual Form 3 figures and explanation from the proposed trustee are what matter for an individual deed. (MoneyHelper fee guidance)

AiB's 2024–25 annual statistics provide a separate historic benchmark. For PTDs concluded in that year, average administration cost was £5,300 where a dividend was payable and £2,100 where no dividend was payable. The median monthly PTD contribution was £150. These figures describe groups of older cases reaching a reporting point; they are not today's price list, an eligibility rule or a forecast. (AiB annual statistics 2024–25)

£150Median monthly PTD contribution in 2024–25.
£5,300Average administration cost where a dividend was payable.
£2,100Average administration cost where no dividend was payable.

All three figures are labelled 2024–25 and must remain dated whenever quoted.

Where the money goes

A lower creditor dividend does not reduce the agreed payment automatically

Fees and outlays reduce the estate available for creditor distribution. The debtor's obligation, however, is governed by the agreed terms and affordability reviews rather than by a guaranteed dividend. Creditors can receive less than the total debt even where the debtor makes every required contribution.

This is why both the estimated outcome and its assumptions should be visible. The debtor should be able to distinguish money expected from contributions, money expected from assets, remuneration, outlays and the projected dividend. A percentage of debt said to be “written off” should never be advertised as guaranteed before creditor claims, fees and asset treatment are known.

If circumstances change

Missed payments can change the duration and the outcome

If a payment becomes unaffordable, the debtor should contact the trustee immediately. The trustee can review affordability and may change the contribution where the evidence supports it. Simply stopping without agreement can lead to wage deductions, an extension or failure.

AiB's consumer document warns that money already paid is not returned if the PTD is cancelled. Creditors can resume asking for payment and may add fees, while bankruptcy can become a risk. The original proposal should explain which remuneration and outlays remain payable in a failed case. (AiB: stopping payments or failure)

Before signing

Questions the fee explanation should answer

What fixed fee and percentage will the trustee take?
Which outlays are expected, and which events could add further outlays?
What total contributions and asset receipts are currently forecast?
How much is estimated to reach ordinary creditors?
How often will affordability be reviewed and what evidence is required?
How will home equity, vehicles, inheritances and other new funds be treated?
What can be charged if protection is refused, payments are missed or the deed fails?
Why does the adviser consider this better than DAS, bankruptcy or an informal plan?

Compare advice before committing

MoneyHelper recommends speaking to a free debt-advice service before taking out a trust deed. Independent advice can test whether the proposed costs and asset consequences are proportionate and whether a non-insolvency option could repay the debts instead.

FAQ

Questions about trust deed costs

Is there an advance fee to set up a trust deed?

MoneyHelper says the Insolvency Practitioner should set up the trust deed without charging an advance fee. The trustee is still paid statutory remuneration from contributions and, where applicable, assets realised during the deed.

What is the average monthly trust deed contribution?

There is no standard payment. AiB reported a £150 median monthly contribution for protected trust deeds in 2024-25, but that is a historical population statistic, not a quote or minimum for a new case.

Do trustee fees reduce the money paid to creditors?

Yes. Fees and permitted outlays are paid from the trust deed estate, so they reduce the funds available for creditor distributions. AiB's consumer information says the fees do not change the debtor's agreed payment or payment duration.

Can trust deed payments increase or decrease?

Yes. AiB says affordability is reviewed at least annually and payments can rise or fall when income, essential spending or household circumstances change. The trustee must be told about material changes.

What happens to payments if the trust deed fails?

Money already paid is not returned simply because the deed fails. Creditors may resume recovery and add fees, and the proposal should explain what remuneration and outlays can still be taken and whether bankruptcy is a risk.

Sources

Authoritative material used for this guide

This page provides general information, not a personal fee estimate. Published ranges and statistics are dated and should be reviewed against the actual trust deed proposal.

Sources checked and page reviewed on 11 July 2026.

How much does a protected trust deed cost?