Trusts - Bank account?

[Dog_lover2807]

Hi we have set up a family trust for our daughter with our soliciter. However we dont have a wrapper to store the cash in and tie it to the trust. Can anyone sugest where to go to get one? and how this works. At present we have a bare trust with Hargreve lands down, but it seems specific to our daughter and when she gets to 18 she has full rights over it.

[FragileXmum]

Hello. It's great that you and your family are thinking ahead, it's a very big thing to get your head around. We started the process a few years ago (my dad had been a solicitor so kept reminding us to get going on it!) as both our sons are LD and so future planning is vital. We were advised to set up a discretionary trust, which would take care of the money side of things. I really recommend that you contact the Mencap Wills department as they occasionally run webinars (free of charge) to advise on all these aspects and we have found them to be really helpful and informative. All the best.

[class9F]

I am not a solicitor but did use to work at one as a secretary so this is from my experience working there and what I have set up in my will for my son. I believe you need a discretionary trust. This means that it is up to the trustees discretion who benefits from the trust funds so you will need to have more than your daughter named as a beneficiary. This is accompanied by a letter of wishes in which you state that your daughter should be the main beneficiary. Once you have a Trust document you can open an account in the name of the trust with the trustees as signatories. Your daughter will not be able to access the money directly and because it is at the Trustees discretion whether she has any of the money, her benefits will not be affected when she reaches 18. I suggest you contact a solicitor for specific advice. Income earned from the trust monies are taxed at a higher rate I believe but again a solicitor will be able to advise.

[Dog_lover2807 in reply to class9F]

Thanks for the informtion, we have allready done this. What i need help with is finding out which banks can open the investment account to hold the money.

[class9F in reply to Dog_lover2807]

Most high street banks have suitable accounts. You might have to go to a branch rather than doing it online so choice will be limited and consequently interest earned will be negligible.

[Blue4rose in reply to class9F]

It seems to be getting difficult to find a trust bank account as more and more banks have stopped offering them. We have been informed by the high street bank we have a trust account with that we need to find an alternative as they will be discontinuing these accounts. We are trying to find out which banks are still offering accounts for trustees

[cautiouscandy in reply to Blue4rose]

Hi, Barclays still do Trust accounts, the only high street bamk that do they now I believe...

[cautiouscandy in reply to Dog_lover2807]

Hi there, I have recently opened a Trust account in Barclays, they are the only high street bank that do trust accounts but it will be a current account, if that is okay for you. The account will be handled by the trustees, in my case at least, because the Trust is a Discretionary type one. All the best

😊

[Blue4rose in reply to cautiouscandy]

Thanks, I will give them a try

[learner01]

It’s essential that you get advice from someone who knows how your trust will interact with benefits etc. As others have said it is a discretionary trust that is needed otherwise the money will be your daughters and can be taken to pay for her needs by social services. It could also affect her entitlement to benefits. For example Once someone has £6000 in savings entitlement to non contributory ESA starts reducing . There are other thresholds too.

If your daughter is entitled to PIP it might be possible to have your trust as a Disabled Persons or Vulnerable Person Interest Trust which is also a type of discretionary trust but has better tax treatment than an ordinary discretionary trust.

Renaissance Legal have useful information on their website about trusts

[Tariku]

Please help me