Discretionary Trust - need an account

Paul1011

Hi, I have established through a solicitor a discretionary trust to benefit my brain damaged daughter who can not fully manage money. I now want to open a joint account to hold these funds.....and at the moment am banging my head against the wall to try to find a person in a bank that knows what I am talking about. I need information as to accounts as ideally I would like a small return on the lump sum, but will need occasional access. Can anyone point me towards a helpful bank? Thanks so much

dr_adidas01

Paul1011 wrote: »

Hi, I have established through a solicitor a discretionary trust to benefit my brain damaged daughter who can not fully manage money. I now want to open a joint account to hold these funds.....and at the moment am banging my head against the wall to try to find a person in a bank that knows what I am talking about. I need information as to accounts as ideally I would like a small return on the lump sum, but will need occasional access. Can anyone point me towards a helpful bank? Thanks so much

Since you have established this through a solicitor, do they not know of any banks that offer this sort of account?

I seem to recall a friend setting one up via their solicitor and he recommended a few banks that offered the type of account needed, ask your solicitor if they have any idea whom to approach.

Otherwise it maybe worth asking to speak to a manager or financial advisor of a bank and talking to them, as the average bank staff member won't have any idea what you are talking about.

Paul1011

Thanks the trust was set up some time ago and the solicitor was of the view ' any bank'..but that is not proving to be the case. I am waiting calls back from HSBC and Nationwide. Just trying to ease the frustration :-)

henm2

HSBC should be able to do it as they certainly have done in the past. (Opened as a type of business account)
However having checked you do not seem to be able to do it using their online application process so you will definitely need an appointment with one of their business specialists.
As well as the usual ID and proof of address for yourself they will need to copy the original trust deed.

Paul1011

Thankyou- I have an appointment with HSBC next week, they are talking about some sort of ' community account'........maybe I am naieve but they seem to be over complicating this....am hoping not to have to pay them for this service as they will be holding a decent amount of cash

xylophone

You would open an account in the name of the Trustees of the (Name of daughter) Discretionary Trust.

Two family members and a solicitor are the trustees of a Will Trust I know and the account is held with Barclays which is where one of the Trustees had banked for a number of years.

All three had to go to the branch to give sample signatures, agree whether it was two or three to sign cheques etc.

See http://www.markthompsonlaw.com/best-bank-or-building-society-account-for-personal-injury-trust/personal-injury-trust-to-protect-personal-injury-compensation/

Be sure that you understand Trust taxation. The following may be worth a look.

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

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

Mattygroves2

I know for definite that NatWest do trustee accounts and I would expect most of the high street banks to do them as well. It's normal to have two trustees (partly in case anything happens to one of you) and you'll probably both have to visit the branch to open up an account.

The Natwest ones are free but not designed as investments as the rates are very low (0.1%) - they are designed as effectively current accounts. If you want a decent level of income (which you are required to so as part of your trustee responsibilities) then you should be thinking about investments rather than cash.

The tax treatment is not straightforward so suggest you read the links above particularly re income distribution and the need to be careful with the "tax pool" if you want the beneficiaries to be able to claim back the extra tax the trust will pay on it's income.

xylophone

then you should be thinking about investments rather than cash.

And remember that you will invest in the name of the Trustees of the XXXX Discretionary Trust.

Example from HL

" To apply for a Vantage Fund & Share Account in the name of a trust, you would need to send us an application form via the post which can be requested from our Investment Helpdesk on 0117 900 9000.

We require the original or a certified copy of the Trust Document with the accompanying application form and, if not already in the Trust Document, a list of names and addresses of all authorised trustees and beneficiaries.

It is not possible to apply for a Vantage Fund & Share Account in the name of a Trust online or over the telephone."

It is also possible to hold building society accounts in the names of the trustees of a trust.

henm2

Paul1011 wrote: »

Thankyou- I have an appointment with HSBC next week, they are talking about some sort of ' community account'........maybe I am naieve but they seem to be over complicating this....am hoping not to have to pay them for this service as they will be holding a decent amount of cash

The 'community account' will be fine. No charges are made for the regular running of the account such as receipt of income and payment of cheques and standing orders etc.
You did however mention that there will be substantial funds
going through. HSBC's business savings rates are extremely poor.

HSBC's account opening whether business or personal can seem complicated due to their anti money laundering compliance procedures.

jonesMUFCforever

Try Cater Allen.