Personal injury trust bank

leopoldo_2

Hi, I hope that I'm putting this in the right part of the forum.

This is a question on behalf of my sister. She was recently awarded a sum from a medical negligence claim and was told that she should open a personal injury trust to protect her disability benefits (a disability that is a result of the medical negligence).

She has found it hard to find a bank that is offering them currently, but Metro Bank gave her appointment to submit an application.

She has now been told that the application was rejected because of her credit rating (I'm not familiar with the specifics)...which makes little sense to me as she will only be depositing and withdrawing funds, not borrowing anything.

Anyway, is there an alternative arrangement she can use for this trust rather than depending on a bank's discretion? Or alternative banks?

Cater Allen and Barclays are not currently accepting any new trusts apparently.

Thanks in advance, she is very stressed and hoping I have give her some good news.

TiVo_Lad

There is some good advice here:

https://moneyfacts.co.uk/savings-accounts/guides/what-kind-of-account-is-a-trust-account/

leopoldo_2

Thanks, I've taken a look and it doesn't have anything specifically for her case. I kind of wonder if you can just open a separate, normal savings account to use for the trust but I am assuming not.

theoretica

A trust of this kind is not something she can open at a bank - she would need to have it set up with solicitors and appoint trustees (she could be one, but there must be another one too) to look after the money and pay portions of it to her when appropriate.  Once appointed, the trustees open a trust account. 

See for instance this  - no recommendation, just found on google.

https://www.clarkewillmott.com/legal-services/accident-and-injury-claims/serious-injury-solicitors/personal-injury-trusts/

leopoldo_2

She did have a solicitor set up the trust and appointed two trustees, the only stumbling block is the bank account she will use for the funds...which I would have thought was the simplest part of the process but is turning out to be a bit of a headache.

TiVo_Lad

leopoldo_2 said:

Thanks, I've taken a look and it doesn't have anything specifically for her case. I kind of wonder if you can just open a separate, normal savings account to use for the trust but I am assuming not.

Not quite true (and the link does have information relevant to your case). You do not have to have a specific Trust Account, although some such as Metro Bank, (https://www.metrobankonline.co.uk/business/sector-services/products/trustee-banking/) or Skipton (https://www.skipton.co.uk/-/media/skipton-co-uk/pdf/application-forms/314151_Trustee-Savings-Account.ashx?la=en-GB) do have specific accounts. You simply need an account that the financial institution allows to be managed by Trustees. So yes it is possible to open a normal account as long as the terms and conditions of the account permit it to be operated by Trustees.

leopoldo_2

Thanks excellent information, thanks

DullGreyGuy

leopoldo_2 said:

Thanks, I've taken a look and it doesn't have anything specifically for her case. I kind of wonder if you can just open a separate, normal savings account to use for the trust but I am assuming not.

You are missing the point that she is claiming benefits (and presumably potential future care needs) and is wanting to separate the compensation from her own monies for the purposes of anything thats means tested... its not that its a requirement to use a trust, just can be beneficial to do so

leopoldo_2

Yes, she has already had the trust arranged, it is just the account used to deposit the trust funds essentially.

Just strikes me as odd that her credit rating has any bearing on opening an account that will only be used to deposit money (and subsequent withdrawals), she is not asking for any form of credit.

theoretica

leopoldo_2 said:

She did have a solicitor set up the trust and appointed two trustees, the only stumbling block is the bank account she will use for the funds...which I would have thought was the simplest part of the process but is turning out to be a bit of a headache.

Sorry!  I read your post as being before that step.  I get the impression that since the government recently required trusts to be registered banks everyone involved in trusts, including the banks, is finding them a faff. 

Albermarle

leopoldo_2 said:

Yes, she has already had the trust arranged, it is just the account used to deposit the trust funds essentially.

Just strikes me as odd that her credit rating has any bearing on opening an account that will only be used to deposit money (and subsequent withdrawals), she is not asking for any form of credit.

It is a bit odd, but banks have their own rules.
Skipton Building society are often mentioned in this area, and a previous poster provided a link. Although I think it will be an easy access savings account rather than a current account. Not sure though.