Metro Trust Bank Account

valiant24

I am a Trustee for a Trust which my late uncle set up to benefit my cousins upon the death of my aunt, who is now 91.

Earlier this year, when my aunt moved to a care home, we had to set up a bank account in something of a hurry to receive the proceeds of the sale of her home (around £200,000).   In the end we established the account with Metro Bank.  At the time it paid 0.00000000000000000000001% interest but that's since been cut to zero. 

As a Trustee it's my responsibility to act in the best interests of the Trust, and I think that includes getting some interest.  Metro Bank has a number of Fixed-Term accounts, the minimum of which is a one-year account paying 2.45%.   But I'm not convinced that it's in the best interests of the beneficiaries to tie the money up for a year given my aunt's age.  The Terms do seem to preclude early closure.

I wondered if anyone had any experience?   We struggled to find anyone else offering a Trustee account (and Metro Bank didn't really seem to understand its own product).  I'd look at a dealing account and maybe buy CSH2 or some short-term gilts, but again, are these available for Trust accounts.

Thoughts gratefully received.

Thanks
V

xylophone

I wonder could you clarify your post.

First, you mention that you are the Trustee of a Trust created by your late uncle to benefit your cousins upon the death of your aunt.

You then say that you had to set up an account in a hurry when your aunt moved into a care home, the purpose of which was to receive the proceeds of sale of her property.

Do you mean that your  late uncle was the sole proprietor of the marital home and his will granted his widow an interest in possession until such time as she moved out of it?

Or does she also have the right to benefit from any income arising on the invested capital of the sale proceeds of the property? 

Are you seeking to establish a dealing account in Trust?

https://adviserservices.fidelity.co.uk/secure/help-support/products/investment-account-help/about-our-investment-account/trust-pension-charity/

Or a deposit account?

https://www.mansfieldbs.co.uk/saving/trust-savings-accounts/

Have you read

https://www.gov.uk/trusts-taxes/registering-a-trust

poseidon1

Agree xylophone's analysis.

Assuming your Aunt has a continuing interest in possession as life tenant of what appears to be an IPDI trust, then not many options to secure decent deposit account interest rates.

If you can obtain a solicitor or Financial Advisor referral Cater Allen ( owned by Santander) worth a look per below

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

There are  of course a couple of NSI products that could also be explored per link below, subject to jumping through NSI's compliance hoops

https://www.nsandi.com/files/asset/pdf/trust-faqs.pdf


You also mention gilts and if this is an area you feel confident exploring then short/medium term high coupons examples  could also make sense given your Aunt's age, or potentially low risk money market funds. 

However you are unlikely to be able to use the mainstream retail investment platforms on a DIY basis as trustee, except maybe Fidelity, but  I had a problem accessing xylophone's link to confirm exactly whats on offer. 

Alternatively  you could engage the services of one or more  of the specialist wealth managers such as  Canaccord Genuity or Walker Cripps stockbrokers ( for gilts).

That said such  wealth managers may expect you to have in place a trustee investment policy statement outlining the investment  objectives you expect of them - see template below - 

https://library.standardlife.co.uk/iht18.pdf

valiant24

poseidon1 said:

Agree xylophone's analysis.

Assuming your Aunt has a continuing interest in possession as life tenant of what appears to be an IPDI trust, then not many options to secure decent deposit account interest rates.

If you can obtain a solicitor or Financial Advisor referral Cater Allen ( owned by Santander) worth a look per below

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

There are  of course a couple of NSI products that could also be explored per link below, subject to jumping through NSI's compliance hoops

https://www.nsandi.com/files/asset/pdf/trust-faqs.pdf


You also mention gilts and if this is an area you feel confident exploring then short/medium term high coupons examples  could also make sense given your Aunt's age, or potentially low risk money market funds. 

However you are unlikely to be able to use the mainstream retail investment platforms on a DIY basis as trustee, except maybe Fidelity, but  I had a problem accessing xylophone's link to confirm exactly whats on offer. 

Alternatively  you could engage the services of one or more  of the specialist wealth managers such as  Canaccord Genuity or Walker Cripps stockbrokers ( for gilts).

That said such  wealth managers may expect you to have in place a trustee investment policy statement outlining the investment  objectives you expect of them - see template below - 

https://library.standardlife.co.uk/iht18.pdf

Thanks.   Still gathering the exact info about the Trust to answer xylophone.

On the face of it NS&I is nice and safe and its Investment Bond looks OK, although we want a growth account really not an income one, but it's not the end of the world.   One downside is that your link says they accept deposits only by cheque: we wouldn't be able to do that on account of Metro not providing that facility (and it no longer being 1998 anyway ;-)).