As the Settlor of a Trust (for grandchildren) I opened a bank account some years ago under the Name of XXXXX(my name) Trust account with Nat west … The Trust is vested solely in a share of an equity house property and has no actual funds until crystallisation. I understand from Nat West that they no longer operate TRUST Accounts and that this account is under my name, albeit with TRUST FUND LABEL. Is this in order that I continue to operate this account on behalf of the grandchildren or should I transfer to an alternative organisation .In view of my advanced age I need to clarify for Trustees clarity.
Thank you for your kind advice
Does this trust account have a zero balance? It probably is not worth the trouble maintaining it for now.
If you want to keep an account, I would leave it as is. It will not be possible to open a new trust account with another bank with zero funds.
In view of your advance age (me too) as it is already established, would it be possible to add the children’s parent/s to the account as Trustees? I may save a lot of hassle if you ‘popped off’ and the others could just continue to act. Another option could be a junior ISA with the proceeds?
Hello Andrew
Many thanks for prompt reply. The Trust has only token funds and will receive the grandchildren’s substantial funds only on maturity of TRUST. My concern is that the account will NOT be classified as my personal account . although I can keep it open with a view that either I(or Trustees) can distribute funds according to the DEED as soon as received. The Grandchildren will account for any capital gains Tax due.
Your kind interest appreciated
James
Hello Senior Sam … Thank you as well as Andrew for your interest .
Two parents are Trustees , so my dubious longevity is covered. MY main concern was that the ACCOUNT is recognised as being applicable solely to the TRUST (Bare Trust)and would not reflect any financial interest for me . As stated the Grandchildren will each be responsible for any possible Cap. Gains Tax on their share.
It would seem that we are in order to leave account as now and no doubt the TRUSTEES will distribute accordingly
Thank you
James
This is a problem for many others at present, but I have just seen another post on here that tells me METRO may be opening up theit Trust side again after being swamped and having to close it.
As long as the Parents appreciate that as a Bare Trust they do need to pass on the fund to the beneficiary at age 18, which sometimes does seem young when larger amounts are concerned, so trying to get the children ‘schooled’ in money at an early age may help avoid the motor bikes and high speed cars.