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Discretionary trust banking and sharedealing; who?

BarrenFluffit
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Discretionary trust banking and sharedealing; who?

#132484

Postby BarrenFluffit » April 16th, 2018, 10:15 am

It's looking like the trust is going to need a bank account to pay third parties and a sharedealing account to make investments.

The complication is that control of each account should require more than one trustee.

We have had to use certificated share dealing with both trustee's signing but this was painfully expensive.

How do existing trustee's handle this and who do they use?

PinkDalek
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Re: Discretionary trust banking and sharedealing; who?

#132556

Postby PinkDalek » April 16th, 2018, 3:09 pm

BarrenFluffit wrote:It's looking like the trust is going to need a bank account to pay third parties and a sharedealing account to make investments.

The complication is that control of each account should require more than one trustee.

We have had to use certificated share dealing with both trustee's signing but this was painfully expensive.

How do existing trustee's handle this and who do they use?


We opened a bank account with Barclays, where each Trustee has, we chose individually, access to online banking, telephone banking and the Barclays App. In our case all 3 Trustees had to complete whatever forms there were and identify themselves when not already known to Barclays.

That discretionary trust does no presently have a sharedealing account but for another trust we are now using Hargreaves Landsdown as Barclays were not able to hold foreign investments in the new Smart Investor account. I can dig up further detail if required but this involved sending:

1. Vantage Fund & Share Account - Trust Account Application Form. I think this had to be requested by phone or at least that's what I did.

2. Certified copy of a the original trust deed. Note this has to be certified on each and every page

3. A cheque for £1 to open the account.

4. Vantage Fund & Share Account - Corporate Transfer Form (to transfer the holding from Barclays Stockbrokers). Again obtained by phone.

In our case this was followed up with the need to complete a "Trust Self-Certification form" and a "Declaration of tax residency and citizenship form".

When the Vantage Fund & Share Account is open you can then register the account online, using the date of the trust in place of the date of birth.

We get regular updates showing the lack of progress at Barclays' end but this shouldn't impact upon you (so I'm not intending for others to join in on yet another Barclays rant).

Their website is here http://www.hl.co.uk/ and their charges here http://www.hl.co.uk/investment-services ... rest-rates. Annual management charges - Shares, investment trusts, ETFs, gilts & bonds No charge but they do charge for funds as per that page.

BarrenFluffit
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Re: Discretionary trust banking and sharedealing; who?

#133598

Postby BarrenFluffit » April 20th, 2018, 5:13 pm

Thanks for the info. It's now much clearer about the process needed to gather the documents etc

Parky
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Re: Discretionary trust banking and sharedealing; who?

#143632

Postby Parky » June 4th, 2018, 4:05 pm

I use Alliance Trust for share holding and dealing. The application process is very similar if not identical to the one described above for H-L.
In case you don't know, before your chosen platform will trade on behalf of the trust,thanks to the EU you need to get an LEI (Legal Entity Identifier) (on-line from the London Stock exchange at a cost of £138), before which you need to register the trust on-line with HMRC to get a UTR(Unique Tax Reference), which is also required to complete a tax return. Running a trust isn't as simple as it used to be.
To make cash payments I transfer money to my personal bank account and pay it from there. Not ideal if you want to keep the trust cash separate, but it only stays there a short time.

Jabd2001
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Re: Discretionary trust banking and sharedealing; who?

#143709

Postby Jabd2001 » June 4th, 2018, 7:10 pm

Yes second the use of Barclays and Alliance Trust Savings for Trust accounts.
NS&I also provide accounts for Trusts, but not sure if that includes current accounts (in my experience that’s the most tricky thing to organise).


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