I have been instrucyed by a client to prepare a Discretionary Trust. They are however having difficulty locating a bank who will open specific Trustee Accounts. Direct Access is required for the Trust and so they don’t want to tie the funds up in an investment account that they can’t access easily.
How are people overcoming this?
Thanks
Hi,
Cater Allen used to specialise in this and I think Metro Bank and TSB also offer Trustee accounts atm. It’s a lot of leg work to find a bank that do Trustee accounts but they do still exist. Some will need an intermediary to set up and at least one of these charges for the initial set up but I can’t remember who does what off the top of my head.
Hope that helps
Lyndzey Smissen
Paytons Solicitors LLP
As a trustee I can confim it is not easy. Handelsbanken will do only if you at least have one of their personal accounts (£25 monthly fees). The trustee account will also perhaps have similar or greater fees attached.
Barclays are stopping new applications in a few weeks (currently they are paused).
I called Cater Allen who said they had to be introduced through a financial advisor! I am trying to find one, so far all local ones are not interested. I assume as there is not enough money in it? I am not even sure if they still do these accounts.
Metro appear to do so however the trustees and the beneficiary will at least need to travel to a branch for an interview (for me and my disabled daughter that means round trip of 360 miles).
If anyone has better information would be grateful
So some progress for myself it seems. I have been in touch with Metro Bank who will allow me to verify the identification required through a solicitor or accountant close to me instead of travelling 170 miles to my nearest branch.
Downsides are opening fee and very low interest rate but it does have internet banking and a cheque book!
Will post an update if it works out
Who is PFP please Michelle?
Cater Allen and Metro are the more common, although Metro has now started to charge for setting up the account.
It might be worth considering how much access is needed, and if it isn’t required, possible direct investment might be a way forward.
With opening trustee accounts becoming increasingly complex with providers pulling out of the market, more providers may charge a fee.
Trustees may look more to using declarations of trust with the appropriate guidance.
Thanks Michelle that’s great
Yes all very well thank you - hope you are too x
HI, I have recently used Skipton Building Society for several of our Trustee accounts. It is all via post so there is a delay but the forms are simply to complete.
How do they Identify their members if it’s all by post?
Julian Cohen
Simons Rodkin
You are required to send in ID of all parties to the trust with your application, Trustees and Beneficiaries (if over 18). Alternatively there is an option to attend a branch but I think that is once you have submitted your application.
Erica