Non-discretionary trust fixed term saving accounts?

Agram

Looking for more bank/building societies that offer fixed rate bond saving accounts for a non-discretionary Will Trust.


Two I've found and used are Principality, and Britannia.


Apart from the poor interest rates I don't like how Britannia produce their statement of tax deduction, which divides the amount by two and lists each half under the separate trustee names.


When I searched the following were mention during 2010: Julian Hodge, Skipton, Leeds, Derbyshire. But looking at their websites I have only found personal accounts.

xylophone

When you say non-discretionary, what kind of will trust is this?

http://www.hmrc.gov.uk/trusts/types/index.htm will be worth a careful read.

Your_Hero

I was about to ask the same thing as xylophone. What exactly do you mean by a non-discretionary trust? That's like saying, I want an non-ISA account. It could be anything.

What is the purpose of the trust?

Agram

Apologises for late reply.

Had a quick look for an explanation of non-discretionary trust. This is first mention I found: Tax on income received by interest in possession trusts
Can't post link, but hmrc site /trusts/income-tax/income-types.htm#3

I don't have the details available to check specifics regarding trust, so just after names of banks and/or building societies that allow trust based account (not child trust accounts).

Can add Yorkshire Building Society (Probate department) to list.

xylophone

You will open an account in the names of XX and XY Trustees of the NNN Will Trust.

You do need to be sure what type of trust this is. You are sure that it is not a bare trust?

Assuming that this is not just a bare trust for a child, you should advise HMRC of the existence of the Trust and the addresses of the Trustees - the tax return will be sent to the person who is going to administer the Trust.

Be sure that you understand how Trust income is taxed.

http://www.hmrc.gov.uk/trusts/types/iip.htm

If you don't understand, take professional advice.

You will need a Trustee Bank Account ( a current account) to receive income- a family trust I'm familiar with uses Barclays.

If you have investments in mind , it is possible to open an account in the name of the Trustees with the likes of Hargreaves Lansdown or another stock broker.

You will need to check with the individual institution which accounts they permit to be held in the names of Trustees.

Agram

Have found Lloyds Bank also offer Personal Trust Account, but have to make an appointment to open.


No information available beyond internal notes the cashier/phone operator has available.


Edit - Only a choice of two instant access accounts available.

margid

We have used Building Society accounts to provide an income for a Will Trust for 10 years. Apart from the fact that interests rates are appalling I can only find 1 Society that will accept deposits for Trustees. I made over 20 calls on Saturday and only came up with the Skipton.
We have a duty to provide an income for the beneficiary and are reluctant to get involved with the Stock Market - any suggestions?

xylophone

http://www.nsandi.com/contact-us-helpful-information-faqs-can-i-invest-trust

http://www.bathbuildingsociety.co.uk/savings/business-and-professional-accounts/trust-accounts

http://www.scottishwidows.co.uk/bank/savings/trust_fund_intro.html

The interest rates are low however.

Incidentally, what kind of trust is this - http://www.hmrc.gov.uk/trusts/types/index.ht


The above is important for tax purposes.

If the need for income cannot be met through deposit accounts, you might need to consider the investment option.

You could consult an IFA http://www.unbiased.co.uk/find-an-adviser?gclid=CISE6_bZ0cACFQH3wgoddTMAWg

xylophone

the investment option.

This was aimed at ISA investors but might be worth reading?
http://www.hl.co.uk/news/articles/income-investing-receive-1000-per-annum-tax-free-from-isas?utm_source=outbrain&utm_medium=content+dist&utm_campaign=CX0F7_adrian+lowcock_income+investing+receive+%A31000+per+annum+tax-free+from+isas_isa+investors+how+to+receive+%A31000+yearly&cnr=other&theSource=CX0F7&Override=1

Your_Hero

margid wrote: »

We have used Building Society accounts to provide an income for a Will Trust for 10 years. Apart from the fact that interests rates are appalling I can only find 1 Society that will accept deposits for Trustees. I made over 20 calls on Saturday and only came up with the Skipton.
We have a duty to provide an income for the beneficiary and are reluctant to get involved with the Stock Market - any suggestions?

As trustees, you do have a duty to provide the income and also to invest prudently. It sounds like you're trying to provide an income for life to the beneficiary (life tenant) but are using cash deposits to do this, which does not sound wise and could be argued that it may not be in the beneficiary's best interest.

If this is a form of life-interest trust, you need to take a balanced approach to provide this income as well as preserving/growing the capital for the residuary beneficiaries (the people who will benefit after the life tenant has passed away).

Depending on the amounts involved you ought to seek professional advice.

Agram

margid wrote: »

We have used Building Society accounts to provide an income for a Will Trust for 10 years. Apart from the fact that interests rates are appalling I can only find 1 Society that will accept deposits for Trustees. I made over 20 calls on Saturday and only came up with the Skipton.
We have a duty to provide an income for the beneficiary and are reluctant to get involved with the Stock Market - any suggestions?

Yorkshire Building Society support trust accounts. The probate department will clarify what documents you need to provide to set it up relating to trust, and personal identification for the trustees.


On the application form there is a boxed section for trust account only to state name of trust (if applicable) and date of birth of beneficiary.


The downside is the one year fixed rate 2.00% gross bond has been withdrawn and replaced with a three year at 2.50% gross.


Two other societies that I know support trust accounts are both offering poor interest on one year fixed rate bonds. Principality (1.50%) and former Britannia who are now Co-operativebank (1.55%). But opening a bond is time consuming as branch workers don't know about trusts additional setup requirements and end up being a middleman playing Chinese whisper with head office. So probably best to talk to specific department by telephone to obtain forms.