Trust bank accounts

[capitalist]

Hi everyone.
I just got a heap of paperwork from my accountant for my corporate trustee and 2 trusts.
I have opened a hybrid trust for future IP's and shares; and a discretionary trust to run my business under.

I have been told that i need to open bank accounts in the name of each trust.

Can anyone recommend a suitable bank account to be opened in the trust name? I've contacted a couple of banks, and most of them tell me they must be a business type account which are more expensive than other types of accounts, costing up to $6 a month.

Can anyone recommend a bank and a type of account they used to open their trust accounts under?

Any other tips on what i should be doing re the trust would be appreciated.
Thanks.

Mark

 

[XBenX]

www.bankchoice.com.au

maybe you should print out some student cards for your trusts... some banks still charge no fees for students

 

[bundy1964]

Hi

I use a credit union for my business account......

http://www.savingsloans.com.au/bus_trans.asp

Fee free unless I write a cheque.

There must be something similar in other states

My stock broker also has an account on offer......more suitable for a SMSF or similar rather than a working account.

bundy

 

[capitalist]

Good thinking XBenX, i've actually got a couple of dodgy student cards i bought on Kho Sahn Road in Bangkok, but i'm not sure if the banks will accept them

I'll check out the credit unions tomorrow, but i was gonna set up a couple of term deposits with St George (1 for each trust).
The only thing is it has to be a minimum of $1,000 and they only pay 2.5% interest for a 12 month term, plus they charge you $40 if you want to access the money during the term.

After having a think about it, i don't think a term deposit is really appropriate for a trust account, even though there won't be a lot of trading going on.

I guess the best type of account would be something that i can have access to on call?

 

[bundy1964]

Hi

Just had another thought Woolworths Ezybanking is fee free

Not sure if they will acept a Pty Ltd applicant.....what u got to lose

bundy

 

[plainsong]

How about ING,? you can only link it to one bank account though,

 

[Lars]

Hi all,

Are there any rules om what type of account that must be used for a trust?

Could I set up an offset account linked to my home loan so whenever I had any money in the account it would help pay off my mortage sooner. Would the same go for an account for a self managed super trust?

Cheers,
Lars

 

[NealeT]

I bank with the Commonwealth and recently had a similar debate with a teller. I already had a business account but wanted another account to hold GST, PAYG etc... In the end they set me up a standard business account but removed the option to have a cheque book hence no $6/mth fees. All monies moved in and out is done via NetBank and I pay my GST via BPAY.

Hope this helps

Neale

 

[capitalist]

Lars, most banks i've spoken to say that accounts in a trust name must be a business type account.

I decided against the term deposits, and instead went for a cash management account with St George. You need a minimum balance of $1,000 to avoid the $6 pcm account keeping fee and they currently pay 0% interest up to balances of $4,999. They pay 4% from $5,000 to $9,999.

Be aware that some banks won't let you open an account in a trust name. It must be opened in the trustees name, so in my case i had to register my company with them.
The name of the account will be [company name Pty Ltd] as trustee for [trust name].
The bank will also want copies of the Trust Deed and also a copy of the "Registration of Company Name" from ASIC and the ACN.

Part of setting up the structure also involves signing a Stat Dec stating:
"I do not have any convictions, findings of guilt and/or pending
charges (non traffic) in either Victoria, any other state of
Australia or under Commonwealth law AND I acknowledge that this declaration is true and correct and I make it in the belief that a person making a false declaration is liable to the penalties of
perjury."

I can't sign this because i have been naughty in the past, so not sure what to do in this case. Any suggestions?

I'm sure people like Allan Bond, Rodney Adler etc still manage to set up structures like this even though they have prior convictions and have spent time in prison.

 

[bundy1964]

I did find this in the ASIC web page -

Can anyone be a director?


No. You must not act as a director (or manage a company) without Court consent if you are declared bankrupt, or if you have been convicted of various offences such as fraud or offences under company law, such as a breach of your duties as a director or insolvent trading. If you have been convicted you must not manage a company within five years of your conviction, or if imprisoned for one of these offences, within five years after your release from prison. Also, ASIC can ban you from being a company director in certain situations.

If you are not allowed to be a company director, you are not allowed to manage a company. It is a serious offence to set up dummy directors while you really manage the company.

Also, directors must be older than 18

bundy