The context is that three discretionary trusts, each has its own bank account. These are inactive for long periods (years), interspersed by a short period with a few transactions related to realising an asset and acquiring a replacement.
The trusts all have the the same trustees.
Is a trust bank account needed, or could the transactions occur in the personal account of a trustee, with a detailed record made for trust meeting minutes?
If yes, does each trust need its own account, or could they share a single account?
Neville Cramer
Personally, I would be very wary of passing trust monies through my own bank account.
A third party may refuse to transfer monies to a personal account rather than to the trustees’ account, even if they are instructed to do so by all of the trustees. We also need to be mindful that banks are now required to ensure the intended beneficiary and the name on the account to be credited match, so a transfer to Mr Cramer as trustee for the Jones Trust could be rejected by the recipient bank.
I would also be wary of mixing funds from different trusts, regardless of whether they all have the same trustees.
Whilst some corporate trustees have a general account holding all of the monies belonging to the trusts that they administer, they are required to have separate (sub) accounts for each trust.
I suggest the accounts for each of the 3 trusts in question should continue.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
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