NatWest Trust Funds

justybaby

Hi, NatWest has written to me saying they are no longer having Trust Fund accounts from July 2022.
When this Trust Fund was set up we had to pay for a solicitor to set up as was for an insurance payout.
How do you change banks for a Trust Fund and not have to pay a solicitor again?

xylophone

You will need to find a bank that offers Trust Accounts.

You might try Metro?

https://www.metrobankonline.co.uk/business/sector-services/products/trustee-banking/

RosieBill

Hi I am in the same situation as a Trustee. Currently I am able to transfer funds to the Beneficiaries as needed by Natwest online banking.  I am working through a list of organisations provided by a Solicitor that in theory provide Trust accounts.  

Some organisations will allow us to open a Discretionary Will Trust for Savings but the withdrawals are by post and into a Nominated bank Account which needs to be in the name of the Trust Fund or in the name of the Beneficiaries or by Cash or cheque.  I am waiting for an appointment at the Metro Bank to see whether they can provide a current account.  Barclays and Sainsburys are also on my list but impossible to contact.  I'm so frustrated.  

Bad show on Natwest removing support for vulnerable people.  I think it's a scandal - my mother was advised to set up the Discretionary Will Trust for my nephew who has special needs and my sister who is his full time carer.  Can we escalate this to shame the Bank?  Interestingly, Coventry BSoc said they have stopped providing Trust accounts for new clients but are keeping the existing accounts open.  Shame Natwest aren't doing the same.

Can anyone help?

pomaus1975

We are in the same situation as well.

This is disgusting what Natwest have done and I urge all those affected to write to Natwest and complain and ask them to explain how doing this fits in with their pledge to be a Disability smart bank as this is going to effect thousands of disabled customers whose funds are managed by a trust.

In the meantime has anyone had any success in finding another bank that offers these services?
The only thing I can find are ones that do notice accounts or bonds and that is not what we need, we need a bank that will allow further funds to be added from income that the trust generates 

xylophone

we need a bank that will allow further funds to be added from income that the trust generates 

Had you tried Metro Bank?

or

https://www.caterallen.co.uk/accounts/reserve-account-for-trusts/

Or had you considered a savings account in the names of the Trustees to which the income could be added?

You might try ringing Skipton BS to check on whether such an account is still offered.

 0345 850 1722.

RosieBill

Hi Xylophone - thank you for your comments.

Yes I am in the process of researching our options.  So far I have yet to find a bank that will offer the same facilities that we have at NatWest - in particular online banking with a debit card.  We would like a current account and a savings account.  I am in contact with Metro bank - Trust accounts are subject to charges and they do not offer a Debit card.  I've been waiting a week for a response to some questions form them.  Cater Allen have terrible reviews - have you seen them? Also no debit card.  With Skipton - a Trust account is branch based only - no online facility. Withdrawals via cheque or into Nominated Bank account. 

Malthusian

Trust accounts are generally not designed to be used like a personal current account. Why do the trustees need a debit card?

In RosieBill's case it would seem that your sister is providing for the beneficiary's day-to-day needs (her son) and the trust should be covering her care costs via bank transfer to her personal account.

Trust accounts are not loss-leaders for banks so I would be looking for good service rather than interest rates or free banking.

pomaus1975

We have managed to book an appointment with Barclays Bank next week who is going to open up a Current account in the name of the trust with the 2 trustees and also a savings account.

It was a bit off a Faff getting through to the right department as I was passed from Personal Banking to Business Banking and then finally to the bereavement team who deal with trusts.

An appointment was booked for my local branch to take in all the paper work and get the accounts opened, I will update next week with how we get on.

We, do have an account with Skipton bank, but this is only a 45 day notice account and does not really provide the full facilities that we need. Paying in money from income that the  trust generates, as the terms and conditions on that account only allowed money to transfer to and from the nominated account.  I will get in to skipton though and see if there are other accounts they have available.

This has all been a nightmare and really not happy with Natwest at all.  barclays told me they have been inundated with calls from Natwest customers who are in the same boat 

@rosieben

You should be cautious about using a debit card with a trust, we were always under the impression that this could cause problems for terms and conditions of managing a trust and ideally most things should be paid for with a Cheque.
Online transfers between different trust accounts are fine as they show the movement.
But trusts are not really supposed to be used to pay for day to day living expenses and this can cause complications when it comes to the DWP.

RosieBill

Thanks you pomaus1975 - that is most useful. I have eventually got through to someone at Barclays who was most helpful. Looks as though they will be our best option.  

pomaus1975

Just an update for the forum.
Had an appointment with Barclays today, opened up the new trustee account, was very straightforward.

Should receive account details within the next 7 days.

Also opened another new account with Skipton.

Still urge anyone with a trust to write to Natwest and complain about their treatment of trustee accounts and how they are abandoning thousands of disabled customers with this new policy which goes against their pledge to be a disability smart bank.

If anyone comes across any other trustee accounts that pay interest would be very interested to hear. 

corporalsparrow

I’m getting letters from Natwest claiming that my current accounts are trust accounts and will be closed in June 2022. They are not, and have never had any link to any trust. It’s a Natwest admin error. I’ve  called three times to try an stop the process of closure, in December, February and May, and each time they claim that they will take it up with a “manager” and their “legal department”. And each time they claim they will keep me updated. To date I’ve had one return update phone call…to tell me that there are no updates. And that was 12 hours after my phone call. 

Would anyone have any advice of what to do? Or could share their experience of this? It’s driving me nuts and I am concerned that, if they do shut the accounts down, the chaos that would stem from that for me would take a very long time to undo.