Houses in Trusts and Trust Bank Accounts

Poolside007

So looking for some advice from someone with a similar experience. 

Currently selling a house that is held in trust, two settlors (original trustees) and then two additional trustees. 

Will be left over cash from down sizing the property (120k ish), but still occupied by the two settlors (original trustees).

Where can the left over balance from sale be places to ensure it’s protection, not much information regarding trust current accounts for a similar scenario.  The intention is to use the left over money for my grandsons house deposit, but don’t want it to be seen as a possible deprivation  of assets in the future. 

HobgoblinBT

Expect to jump through many hoops, and supply identification and proof of address for all parties to the trust, ie, settlers, trustees and beneficiaries as well as the original trust deed and any amendments.  You could also be asked to supply the source of funds and the source of wealth of the trust and settlers and may need to provide some evidence to back this up.  

Trusts in general are considered high risk compared to a personal customer or a business customer from a bank’s perspective and they may need to carry out an account review more frequently than for a private individual or business. Therefore they may not be keen to open an account unless it is of high value to them, or to grow the relationship with an existing client.  
I have experienced Trust accounts from the perspective of being a trustee, and working for a bank.  Hope this helps.

NottinghamKnight

Trusts can be very complicated, may well need to pay for professional advice. The deprivation of assets always has the potential to be there, especially as it is being referenced at this time, so no guarantee it wouldn't be raised when care is required and charges made.

Poolside007

HobgoblinBT said:

Expect to jump through many hoops, and supply identification and proof of address for all parties to the trust, ie, settlers, trustees and beneficiaries as well as the original trust deed and any amendments.  You could also be asked to supply the source of funds and the source of wealth of the trust and settlers and may need to provide some evidence to back this up.  

Trusts in general are considered high risk compared to a personal customer or a business customer from a bank’s perspective and they may need to carry out an account review more frequently than for a private individual or business. Therefore they may not be keen to open an account unless it is of high value to them, or to grow the relationship with an existing client.  
I have experienced Trust accounts from the perspective of being a trustee, and working for a bank.  Hope this helps.

Yes it seems to be the case and jumping through loops makes it sound easier than it is! Just need an account ideally in the name of the trust to place the money in opposed to using both settlors joint account, where it would be transferred from straight to the grandsons account. Solicitor who’s conveying the sale will prepare a declaration of gift document also for use when it comes to proof of funds and where they came from for his deposit. 

jonesMUFCforever

Is there a reason why the solicitor cannot transfer the funds directly to the grandson's account?

Poolside007

jonesMUFCforever said:

Is there a reason why the solicitor cannot transfer the funds directly to the grandson's account?

Not entirely sure i would have to ask. But It’s my believe that it can only be paid into a joint account with both the sellers names on.

xylophone

Is the grandson named as a potential beneficiary of the trust?

Poolside007

xylophone said:

Is the grandson named as a potential beneficiary of the trust?

No not currently but that could be amended if required. 

jonesMUFCforever

Let's put it this way - if you could find a bank to open a trust fund account - and in the conversation it transcribes that the account will actually only be opened to bank one cheque then the money transferred out - would you be pleased about that (from the bank's point of view)?
IMO there are other options as above.

Poolside007

jonesMUFCforever said:

Let's put it this way - if you could find a bank to open a trust fund account - and in the conversation it transcribes that the account will actually only be opened to bank one cheque then the money transferred out - would you be pleased about that (from the bank's point of view)?
IMO there are other options as above.

What other options do you find applicable, just add as a beneficiary? Solicitor said today the money may be able to be paid to one of the main trustees ‘settlors’ and then they bear the responsibility of distributing it as they see fit for the trust. Which would be to the grandson as is now their wishes.

jonesMUFCforever

Type out a contract - both of you sign it - then get the solicitor to send either of you the monies (again both of you sign to agree this) then send the money to the grandson's account.
I don't think you have stated the age of the grandchild - if they are over 18 he can sign you a receipt to confirm the money has arrived. If he is young and a parent is looking after the account they can do the same.