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Ownership of Trust assets.

including wills and probate
Parky
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Ownership of Trust assets.

#233980

Postby Parky » July 4th, 2019, 3:47 pm

What is the difference, if any, other than the Name of the account, between a Trust Account (a Share Dealing Account in this case) and a ordinary joint account with the Trustees as joint account holders holding the assets in their joint names?


Background - I have an account with the Trust name and need to transfer it to another provider, the preferred one saying that they do not accept Trust accounts.

Clitheroekid
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Re: Ownership of Trust assets.

#234065

Postby Clitheroekid » July 4th, 2019, 11:25 pm

A Trust Account means that the assets in the account are owned by the account holder (the trustee) on trust for someone else (the beneficiary).

So if the account holder dies the assets would pass not as part of his estate, but in accordance with the terms of the trust.

With an ordinary account the assets in the account are owned both legally and beneficially by the account holder, so that on death they would form part of his estate.

Parky
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Re: Ownership of Trust assets.

#234106

Postby Parky » July 5th, 2019, 9:02 am

Clitheroekid wrote:A Trust Account means that the assets in the account are owned by the account holder (the trustee) on trust for someone else (the beneficiary).

So if the account holder dies the assets would pass not as part of his estate, but in accordance with the terms of the trust.

With an ordinary account the assets in the account are owned both legally and beneficially by the account holder, so that on death they would form part of his estate.



Thanks CK, that's exactly what I needed to confirm - so I must find a provider of Trust accounts to protect the Trust assets, which is not proving easy (at a reasonable running cost).

Gan020
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Re: Ownership of Trust assets.

#234926

Postby Gan020 » July 8th, 2019, 3:38 pm

I have an account for a Discretionary Trust with Hargreaves Lansdown. The account is in the name of the Trust. Fee structure is exactly the same as their Fund and Share account so no inactivity fees or annual charge.

I opened it late 2014 so things may have moved on but at the time a number of the other large providers I approached declined stating costs of compliance didn't make it worth their while. I can't now remember who else I approached but this definitely included AJ Bell.

HL will require orginal or certified copies of the Trust Deeds and do actually read them and the application thouroughly as they came back to me with questions all of which were easily resolved. Further the Trust had a change in Trustees 18 months ago and in this case they would only accept a certified copy from a solicitor and not any of the other usual professions (doctors, accountants etc.)

You will need a LEI for the Trust before they will let you trade.

I have had no issues withdrawing money to the same bank account the Trust funded the initial investments from. All done within 24 hours.


Having re-read the thread again I'm not sure I've fully understood your question and whether this will help or not. Maybe it will. I've typed it now so I'll press submit anway

Parky
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Re: Ownership of Trust assets.

#235225

Postby Parky » July 9th, 2019, 3:03 pm

Gan020 wrote:I have an account for a Discretionary Trust with Hargreaves Lansdown. The account is in the name of the Trust. Fee structure is exactly the same as their Fund and Share account so no inactivity fees or annual charge.

I opened it late 2014 so things may have moved on but at the time a number of the other large providers I approached declined stating costs of compliance didn't make it worth their while. I can't now remember who else I approached but this definitely included AJ Bell.

HL will require orginal or certified copies of the Trust Deeds and do actually read them and the application thouroughly as they came back to me with questions all of which were easily resolved. Further the Trust had a change in Trustees 18 months ago and in this case they would only accept a certified copy from a solicitor and not any of the other usual professions (doctors, accountants etc.)

You will need a LEI for the Trust before they will let you trade.

I have had no issues withdrawing money to the same bank account the Trust funded the initial investments from. All done within 24 hours.


Having re-read the thread again I'm not sure I've fully understood your question and whether this will help or not. Maybe it will. I've typed it now so I'll press submit anway



Thanks GAN020. My question was actually the one Clitheroe Kid answered, but in fact your comments were very helpful, as I am thinking of using the HL service for the Trust Dealing Account.


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