Which Building Societies allow Bare Trust Accounts to be set-up?

martinisfab

From my understanding there are hundreds of thousands of people that have set-up Bare Trust accounts for children. I'd like to set one up (with internet access) for my nephew.

However, whenever I ring up any Building Society, none of the customer service staff have the foggiest idea what I'm talking about and different staff the same Building Society give contradictory advice. Everybody I've spoken to says they can't be set-up.

Which building societies allow Bare Trust accounts to be set-up please?

What is the process of setting up a Bare Trust account?

I'm happy to open with any of the following:

Coventry Building Society
West Bromwich Building Society
Principality Building Society
Newcastle Building Society
Nottingham Building Society
Progressive Building Society
National Counties Building Society
Manchester Building Society
Cambridge Building Society
Furness Building Society
Saffron Building Society
Leek United Building Society
Monmouthshire Building Society
Newbury Building Society
Hinckley & Rugby Building Society
Darlington Building Society
Ipswich Building Society
Market Harborough Building Society
Melton Mowbray Building Society
Marsden Building Society

Thanks.

xylophone

http://www.hmrc.gov.uk/tdsi/children.htm - read this first. Note requirement for parent to sign R85 if appropriate and what must happen if the account stays in trust after the age of 16.
http://www.money.co.uk/savings-accounts.htm Click on advanced search, then on account management then available to Trustees.
You should be able to open any account that permits a "re" designation.
Remember that any money placed in the account belongs to the child absolutely and that he has the right to access interest and capital once he attains the age of 18.

martinisfab

Thank you for your useful advice.

I had tried searching Money.co.uk by Trustee criteria. However, either it's not accurate or the Building Society's staff are not being correct.

For example, Coventry Building Society's Online Saver is listed on Money.co.uk accepting Trustee accounts. However, when I rang three of their staff today and they all said that you can't open up Trustee accounts with that account or any account with internet access.

Is there an accurate listing anywhere? Or a way of opening up bear trust accounts while going around these staff who generally don't have a clue?

opinions4u

I'd consider whether your desire to hold cash for a long period of time is most appropriate.

A bare trust variable rate bank / building society account gives the provider lots of power over rate long term.

Chorley do offer such an account.

http://www.chorleybs.co.uk/savings/young-savers/foxley-fund/


But I'd be looking at investment trusts.

xylophone

An investment trust in bare trust example. http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/
http://www.ybs.co.uk/savings/saving_guides/index.html#childrens from Yorkshire BS - it seems to me that the regular saver should be available.
You might approach the BS by saying that you want to open a "re" account as the staff might understand this better.
That said I had no problems a few years back when I held BS accounts (easy access and bond) as Trustee of XYZ (a minor).
It may be that there are problems if you want to set up on-line accounts?
http://www.northernrock.co.uk/savings/find/savings-accounts/Little_Rock_Access_Account_Issue_2/ This account is held in the name of an adult - once set up I should imagine that you could make deposits by bank transfer. You might want to close it into a two year bond (just before the child reaches the age of 16) held in "re" format - you would need to have regard to the tax treatment as outlined in HMRC link (as updated, if appropriate).

Reaper

xylophone wrote: »

You might approach the BS by saying that you want to open a "re" account as the staff might understand this better.

I would be cautious doing this. If you ask for a "Re" account you may well end up with a "Designated Account". In other words the money remains yours and is taxed as your own, as opposed to a Bare Trust where the money is owned by the child and taxed as the child's (with the exception of the £100 rule in relation to parental gifts).
You could use the phrase as an opening but read the small print and check they are giving you what you are after.

Alternatively put money in a CTF or JISA depending on the age of the child, or your own ISA and gift it later if you don't use your annual allowances.

xylophone

would be cautious doing this. If you ask for a "Re" account you may well end up with a "Designated Account". In other words the money remains yours and is taxed as your own, as opposed to a Bare Trust where the money is owned by the child and taxed as the child's (with the exception of the £100 rule in relation to parental gifts).
You could use the phrase as an opening but read the small print and check they are giving you what you are after.

The OP should take the HMRC guidance with him to be sure of getting what he wants. See http://www.hmrc.gov.uk/tdsi/children.htm to which I refer in my first post.

The investment trust link explains both designated and bare trust holdings.