Trust bank account

everyan

I have a disabled persons trust for my daughter and now need to open a trust bank account. I’m not keen on Metro given the financial difficulties they have had. I know of Cater Allen though would need to pay for an introduction which we would do as a last resort but I just want to see if there are any other banks or building societies who offer trust bank accounts. I read that Skipton may do?

Thanks very much 

Eve

Albus_Scope

Hey there @everyan and welcome to the community. How're you today?

I'm just moving your post to a category where more people in the know will see and hopefully be able to offer you some top advice.  

2oldcodgers

everyan said:

I have a disabled persons trust for my daughter and now need to open a trust bank account. I’m not keen on Metro given the financial difficulties they have had. I know of Cater Allen though would need to pay for an introduction which we would do as a last resort but I just want to see if there are any other banks or building societies who offer trust bank accounts. I read that Skipton may do?

Thanks very much 

Eve

We have a discretionary family trust in favour of our children, grandchildren and all other 'children' to come over the next 350 years. Funding for this came from the Criminal Injuries Board. 
2 years ago, after having had the bank account with Natwest for the previous 26 years, they 'debanked' that account. They offered no explanation why. We do have a cheque (now out of date) for the full balance made payable to the Trustees of the Trust but obviously no current bank account.
I have spent hours and hours over the past 24 months trying to find a bank/building Society that would offer banking facilities for the Trust. All refused including Barclays, Lloyds, Santander, Nationwide etc.
About 6 months ago I hit on Metro who said that they would. I was a little concerned that being such a new 'bank' they have no track record. Recently and only days before the news hit the headlines about Metro I had decided to give them a chance. Thankfully I did not go ahead as they were and still are in a rather dodgy position financially. 
So like you we still need to access banking facilities. Any good suggestions please?

MW123

@everyan

@2oldcodgers

While it's not legally mandatory to establish a trust with expert advice, seeking the assistance of a knowledgeable professional is highly recommended. Trusts involve intricate legal and financial considerations, and an expert advisor can provide valuable insights to ensure the trust is structured appropriately and complies with relevant laws. They can help in drafting the trust deed, navigating tax implications, and addressing any specific nuances in your situation. 

@2oldcodgers Planning for 350 years ahead is seriously impressive! Regarding the NatWest issue, have you tried reaching out to them for an explanation?  Understanding their perspective might lead to a resolution. As for the outdated cheque, this could be a problem. Many banks don't honour outdated cheques, it's worth contacting NatWest or the issuing bank to explain the situation. If that doesn't work, consider asking for a reissued cheque.

2oldcodgers

MW123 said:

@everyan

@2oldcodgers

While it's not legally mandatory to establish a trust with expert advice, seeking the assistance of a knowledgeable professional is highly recommended. Trusts involve intricate legal and financial considerations, and an expert advisor can provide valuable insights to ensure the trust is structured appropriately and complies with relevant laws. They can help in drafting the trust deed, navigating tax implications, and addressing any specific nuances in your situation. 

@2oldcodgers Planning for 350 years ahead is seriously impressive! Regarding the NatWest issue, have you tried reaching out to them for an explanation?  Understanding their perspective might lead to a resolution. As for the outdated cheque, this could be a problem. Many banks don't honour outdated cheques, it's worth contacting NatWest or the issuing bank to explain the situation. If that doesn't work, consider asking for a reissued cheque.

Our Trust was set up with specialist legal advice given by a firm of lawyers in the city.
It didn't cost us anything other than the £10 note that was attached to the last page and signed over.
I am well connected with one of the partners!
As for the 350 years, that is the date when the Trust has to be dissolved
As for Natwest of course I questioned their decision but the answer remained the same - they simply had made a business decision that would not be reversed.
Obviously yes I would get a fresh cheque when I have a new account.
So still back on the trail of looking for somewhere to deposit the money.
It's funny but most of the banks that I have approached have told me that they don't like Trusts as it costs more to them than they can make in profits. 

MW123

@2oldcodgers

The tightening of anti-money laundering (AML) regulations and compliance requirements has led many banks to reconsider or modify their trust services. These regulations are implemented to prevent money laundering and illicit financial activities, and financial institutions must adapt their policies to stay in compliance. 

Many banks now express hesitancy in handling trusts due to the associated higher costs created with additional administrative work, compliance measures, and legal considerations compared to standard banking services. Trustees, carrying fiduciary responsibilities, often require specialised knowledge and attention to navigate the complexity of trust structures. 

The inclusion of a nominal amount, such as the £10 attached to the trust document, is a common practice in the UK and various jurisdictions. This symbolic amount serves as a formality to fulfil legal requirements, signifying that the trust was established in a legitimate and intentional manner. Such a practice contributes to ensuring the legal validity of the trust document. 

Given the complexities introduced by regulatory changes, returning to your solicitor, especially one with whom you have a well-established connection, may be your next step. They can provide insights into how the new rules might affect your trust and offer guidance on potential adjustments or alternatives in this evolving regulatory landscape.

2oldcodgers

Thanks for those comments.
I do understand that the regulations need to reviewed at regular intervals.
But here am I with a worthless cheque for quite a sizeable amount of money that must remain frozen until new banking facilities can be  obtained. I feel for the beneficiaries as they are not able to be funded in accordance of the Trust Deed.
As regards speaking to my lawyer, he is of the opinion that I am not alone in being 'de-banked'. 
It does seem and it is his opinion that there are many thousands of Trusts that currently exist in name only simply because of not having banking facilities.
He has told me that Natwest have simply changed their policy along with other banks in that they no longer will accept Trusts.