Trust Account

Sam_Scope said:

Hi @jackandjodie95

Im just reading up on this now as I hadnt heard of it before.

Discretionary trusts

These are where the trustees can make certain decisions about how to use the trust income, and sometimes the capital.

Depending on the trust deed, trustees can decide:

• what gets paid out (income or capital)
• which beneficiary to make payments to
• how often payments are made
• any conditions to impose on the beneficiaries

Discretionary trusts are sometimes set up to put assets aside for:

• a future need, like a grandchild who may need more financial help than other beneficiaries at some point in their life
• beneficiaries who aren’t capable or responsible enough to deal with money themselves

I think as Lasian says, you would need to enquire directly with banks.

All  major building societies and  banks will open up a Discretionary Trust Fund Account.  When I opened mine with the Nat West it took quite a few visits to find somebody that knew about them. Firstly with mine they wanted sight of the original Trust Deed and then they wanted  copies of the signatures who would operate the account - both to sign in my case.
With the time it took the solicitor to draft up the document and the bank issuing a cheque book took almost three months. The major delay was down to the bank which is the main branch in a large town and they told me that they only knew of one other similar trust account as a customer.

The major difficulty you may find is trying to open investment accounts with other banks/building societies. I could only find one building society that would be prepared to accept an account in the name of a Discretionary Trust.
Thankfully there was a local branch and all of the cash capital is invested with them. The other investment is a mortgage charge against our home where the Trust lent the money to settle the mortgage and is repayable when the property is sold - interest is rolling up at the rate of 6% compound.

Our Trust has a life of 499 years.