Bank account for a Life Interest trust

pestopasta_2

Hi


We have just had to sell my mother's house in order to pay for her care home fees. The proceeds are split with half going to my mother (which we've successfully deposited into her bank account while we consider where best to invest it) and the other half going to a Life Interest Trust.


We are struggling to find out how we set up a bank account for a Life Interest Trust in order to find an initial home for the proceeds. We have contacted a couple of High Street banks who, after some confusion, have told us that they don't offer accounts in such circumstances. A Google search directs us towards Private Banking or Wealth Management companies. We will be taking advice on how to invest the proceeds (and I'm thinking of paying an hourly rate for this advice rather than on a commission basis) - but I'd just like to find a simple bank account for the Life Interest Trust as a first step in order for us to have the breathing space to consider our next actions.


Any suggestions gratefully received.

xylophone

https://www.caterallen.co.uk/solutions-for-trusts

may be worth a phone call.

There have been several posts concerning the difficulty of opening Trustee Bank accounts.

I found this - if you really are stuck?

https://www.trusteeaccounts.co.uk/

xylophone

See also http://www.greenwoods.co.uk/knowledge-base/private-client/life-interest-trusts/

https://www.gov.uk/trusts-taxes/trusts-and-inheritance-tax

dunstonh

Most high street banks will do it. However, by high street banks, you are looking at the old big 4. Not building societies that turned into banks.

It is harder now as trusts get caught under FATCA and these creates a legal responsibility and liability issues that many regulated firms are just not interested in putting themselves at risk to.

Has the trust been drawn up yet? (the bank will need to see it before they open an account).

A Google search directs us towards Private Banking or Wealth Management companies.

That is for the investment side. Not for bank account. IFAs typically deal with the investments of trusts but have no deals with the banking side.

and I'm thinking of paying an hourly rate for this advice rather than on a commission basis

There is no commission.

pestopasta_2

Thank you for all these responses - very helpful.


Two of the banks we approached were NatWest and Lloyds - neither thought they could offer such an account (although this might be lack of knowledge on the part of the Branch staff).


The Trust has been drawn up so we will be able to show it to a bank.


Cater Allen looks like a possibility - and I'll give them a call to see what they can offer when I get home from work.

dunstonh

Two of the banks we approached were NatWest and Lloyds - neither thought they could offer such an account (although this might be lack of knowledge on the part of the Branch staff).

Both of them have plenty of trust accounts up and running. However, trust accounts are unusual and not an everyday transaction. Front line staff are not trained like they used to be. So, it is more likely that is the issue.

xylophone

Our family Trust has (and has had for many years) an account with Barclays ( where the various family members had banked since Adam was a lad)- however, in recent dealings, there seemed to have been a change to some form of centralised administration.