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Trust Account

jackandjodie95jackandjodie95 Member Posts: 9 Listener
edited April 2018 in Finances and extra costs
Does anyone know banks in UK that are willing to open a Trust Account as I wish to do so for my grandson.

Replies

  • Lasian_ScopeLasian_Scope Member Posts: 660 Pioneering
    Hi @jackandjodie95!

    Are you talking about a Child Trust Fund? The Money Advice Service talks about them but says they have been replaced by Junior ISAs. I'm not sure if this is what you're looking for but there is information on the gov.uk website about opening an account.

    I hope this help!
  • jackandjodie95jackandjodie95 Member Posts: 9 Listener
    Hi. My grandson is 23 yrs old, so I am trying to set up a Discretionary Trust fund , so not a Child trust Fund.Thanks.
  • Lasian_ScopeLasian_Scope Member Posts: 660 Pioneering
    Hi @jackandjodie95,

    I haven't been able to find any information that might be useful for you on this topic, unfortunately. Have you already tried enquiring with different banks?
  • jackandjodie95jackandjodie95 Member Posts: 9 Listener
    Will start trying asap.

  • Sam_ScopeSam_Scope Member Posts: 7,732 Disability Gamechanger
    Hi @jackandjodie95

    Im just reading up on this now as I hadnt heard of it before.

    Discretionary trusts

    These are where the trustees can make certain decisions about how to use the trust income, and sometimes the capital.

    Depending on the trust deed, trustees can decide:

    • what gets paid out (income or capital)
    • which beneficiary to make payments to
    • how often payments are made
    • any conditions to impose on the beneficiaries

    Discretionary trusts are sometimes set up to put assets aside for:

    • a future need, like a grandchild who may need more financial help than other beneficiaries at some point in their life
    • beneficiaries who aren’t capable or responsible enough to deal with money themselves
    I think as Lasian says, you would need to enquire directly with banks.
    Scope
    Senior online community officer
  • YadnadYadnad Member - under moderation Posts: 2,862 Disability Gamechanger
    Sam_Scope said:
    Hi @jackandjodie95

    Im just reading up on this now as I hadnt heard of it before.

    Discretionary trusts

    These are where the trustees can make certain decisions about how to use the trust income, and sometimes the capital.

    Depending on the trust deed, trustees can decide:

    • what gets paid out (income or capital)
    • which beneficiary to make payments to
    • how often payments are made
    • any conditions to impose on the beneficiaries

    Discretionary trusts are sometimes set up to put assets aside for:

    • a future need, like a grandchild who may need more financial help than other beneficiaries at some point in their life
    • beneficiaries who aren’t capable or responsible enough to deal with money themselves
    I think as Lasian says, you would need to enquire directly with banks.
    All  major building societies and  banks will open up a Discretionary Trust Fund Account.  When I opened mine with the Nat West it took quite a few visits to find somebody that knew about them. Firstly with mine they wanted sight of the original Trust Deed and then they wanted  copies of the signatures who would operate the account - both to sign in my case.
    With the time it took the solicitor to draft up the document and the bank issuing a cheque book took almost three months. The major delay was down to the bank which is the main branch in a large town and they told me that they only knew of one other similar trust account as a customer.

    The major difficulty you may find is trying to open investment accounts with other banks/building societies. I could only find one building society that would be prepared to accept an account in the name of a Discretionary Trust.
    Thankfully there was a local branch and all of the cash capital is invested with them. The other investment is a mortgage charge against our home where the Trust lent the money to settle the mortgage and is repayable when the property is sold - interest is rolling up at the rate of 6% compound.

    Our Trust has a life of 499 years.

  • jackandjodie95jackandjodie95 Member Posts: 9 Listener
  • jackandjodie95jackandjodie95 Member Posts: 9 Listener
    At last I can share this useful info. NSand I do Discretionary  Trust Funds called Formal/ Informal, depending on whether you choose Trustees or solicitors to  run the Trust. Forget abut Banks, they are not interested.Happy to help.
  • wideyeswideyes Member Posts: 18 Connected
    Does anyone know banks in UK that are willing to open a Trust Account as I wish to do so for my grandson.

  • wideyeswideyes Member Posts: 18 Connected
    I have a discretionary trust and I am a trustee and a primary beneficiary 

    Mainstream banks forget same with building societies 

    We ended up opening an account with Drummonds Bank part of RBS 

    However one can only open an account with £100.000 plus 

    They opened a savers account with no interest 

    you do not get a debit card as it is a savings account 

    The trustees receive one cheque book and a card each to draw cash from cash point 

    Try calling Ben Harper Drummonds Bank 07500 120936 
  • Pippa_ScopePippa_Scope Member Posts: 5,856 Disability Gamechanger
    Just to keep all of this discussion in one place and easier to follow, @jackandjodie95 also posted the following:

    I can confirm all is sorted. You go online  or call NS and I. Get the form called INVESTMENT ACCOUNT FOR TRUSTEES. FORM  SB 26T  (2016/02) Send a min £20 cheque with  completed STATUTORY DECLARATION FORM SIGNED BY TRUSTEES. THAT IS IT. SIMPLE after it took me months of research to find .it.
    Read more at https://community.scope.org.uk/discussion/44105/discretionary-trust-fund#X6M8M3IiLbiaZQdG.99
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