Opening a joint account for bare trust- financial association?

Sdurcan123

I have agreed to be a trustee for a bare trust. Part of the process involves opening a joint bank account with the other trustees to hold the money for the trust. I believe it starts as a normal bank account but gets changed to a trust account at some point.

If you are on a trust account, then are you financially associated to the other trustees also on the account? I am thinking about this from a perspective of future credit applications. I am finding the whole process much more focusing than I thought it would be! Any advice welcomed.

xylophone

I have agreed to be a trustee for a bare trust. Part of the process involves opening a joint bank account with the other trustees to hold the money for the trust. I believe it starts as a normal bank account but gets changed to a trust account at some point.

If it is a trust account then it starts as a trust account - AB & CD Trustees of.......

Remember the beneficiary of a bare trust has the legal right to call for access and control at the age of 18 (16 in Scotland).

If a Trust account I do not see that there can be a "financial association" in the generally accepted sense - our family trust has a solicitor as well as family member as Trustee and I very much doubt whether he is "financially associated" with the family member.

http://www.boltburdon.co.uk/private-clients/wealth-planning/trusts/bare-trust/

paul128

Can I inquire which financial organisation you went to to get the current account set up? I've been to the Nationwide today but they weren't of any help really only they only had a smart saver savings account. I called in at HSBC and was told that they no longer do trustee accounts as they are too costly to maintain and got the impression that this would apply to other banks too.

There seems to be a general ignorance of what a bare trust is. The lady in the Nationwide nodded when i was explaining what I required but I rather got the impression it was a nod of I don't understand. The chap I saw in HSBC 'premier' department had to read what I had printed off from the internet and which gave a good summary of a bare trust.

xylophone

Ours is held with Barclays. It is just a current account in the names of the Trustees of the ......Will Trust. It does not pay any interest at all.

Other posters have reported that there was no problem in opening a Trust Account at Natwest.

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

I called in at HSBC and was told that they no longer do trustee accounts as they are too costly to maintain

How on earth can it cost any more than any other current account?

http://www.business.hsbc.co.uk/1/2/business-banking/community-schools-and-colleges

xylophone

And you might try Metro Bank.

http://trustsdiscussionforum.co.uk/t/bank-account-for-a-trust/3865/3

Malthusian

xylophone wrote: »

How on earth can it cost any more than any other current account?

Good question. Apparently expecting bank staff to even know what a trust is goes above and beyond, so it presumably costs extra to retain those able to adminster a trust account.

Also, trustees cannot be persuaded to open expensive packaged accounts offering useless travel insurance. Nor are they likely to be receptive to cold calls asking if they'd like to "make their money work harder" by investing it in expensive crap. So the "loss-leader" element of free current accounts disappears.