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Financially speaking, a trust is a protected set of assets managed by the trustees on behalf of the beneficiaries. These financial entities can be set up (by a settlor) for several reasons, such as the management of someone’s estate after they’ve passed away, or the provision of a managed wealth portfolio for a child who is not yet old enough to access the funds that belong to them.

  • Legally speaking, a trust is a binding agreement between the trustees, settlor, and beneficiaries. 

    Trustee accounts are just tools by which the trustees manage the beneficiaries’ funds. 

  • If you are appointed as trustee of a new trust, you will most likely have to set up a trustee bank account to perform your duties. If you are already a trustee of an existing trust, you will already have a bank account – but how competitive are the account charges and interest rates compared to other products on the market now? In either case, we can help. 

Trustee investment accounts

As a trustee, you should be aware of the financial requirements of the beneficiaries. For example, you may be appointed to a trust where the beneficiary is a charity, and the requirements include capital growth. You should also be aware of any life tenants (beneficiaries in a Life Interest Trust) and consider their needs.  

  • Whatever your specific responsibilities, you’ll need to be aware of the scope and style of investments you can make. This scope is detailed in the Trust Deed and will give very restrictive investment choices, such as bank and building society deposit accounts only. However, it could be better to include unit trusts shares, life assurance investment bonds and property.  
  • You should also be mindful of the tax position of the trust and the beneficiaries, as this will affect which types of trustee investments are suitable and which types of investments are less favourable. Trustee investments do not include the same security of capital as a trustee deposit account. You may get back less than the amount invested. 

Fulfilling your role as a trustee

Your responsibility as a trustee varies from trust to trust. In some instances, it may require daily financial management or the use of a trustee investment account. In others, it will function basically as a savings account, with very little active management required. 

 

Ongoing support for trustees 

If you need help in managing your responsibilities, we’re here to support you. We have a long history of providing impartial, expert advice to trustees.  

Whether you need help with investing, banking, or financial management, simply get in touch today – we look forward to hearing from you. 

 

Please note, the Financial Conduct Authority does not regulate trustee advice. 

Get in touch

If you’d like help opening a trustee bank account or simply have a question, please get in touch using the form below. 

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