Trust fund advice

[Mamma191938]

My family have set up a trust fund for DD. She is one of two children I have. The trust is discretionary so it does not name either child, it refers to “grandchildren” so in theory is includes my second child. But the solicitor said my parents can name DD in a letter of wishes to go with the trust deed. The solicitor advised that a discretionary trust is by nature flexible so this is the way to do it.
However Metrobank are asking for a named beneficiary. Is it sufficient for the trustees to just tell them the beneficiary is x?

I’m getting all these questions from my parents secondhand and I’m not dealing with the bank directly so it’s a bit of a mess. I told parents to speak to the solicitor and the bank but they said that it takes weeks to get an answer back. So I’m hoping there might be some advice on here.

"my parents can name DD in a letter of wishes to go with the trust deed"

Just bear in mind though that trustees are not bound to follow a letter of wishes. It is simply what it says, a letter of wishes. Trustees should take the letter of wishes into account but the letter itself is not a binding legal part of the trust deed.

"However Metrobank are asking for a named beneficiary."

On the Metrobank website they say that where there is a class of beneficiaries (in this case 'grandchildren') then they want the individual names of every potential beneficiary in that class, unless there are so many (or there is some other reason why) that they cannot all reasonably be identified individually by the trustees. In that situation the class of beneficiaries should be recorded instead.

If all the members of the class can be identified individually, they should instead be recorded as individual named beneficiaries both with TRS and on the application form.

From this, it would appear that Metrobank want the name of all the grandchildren, not just your DD.

They also say:

"If the trust has named beneficiaries who are minors (under the age of 18) please provide either a certified birth certificate or a certified passport for each of them, as we are unable to use electronic means for verify their identity(ies)."

Have a look here near the bottom of the page under "Account Opening Requirements":

https://www.metrobankonline.co.uk/business/sector-services/products/trustee-banking/

I’m so puzzled because:

• there are only two GCs, DD and DS
• DS’s trust is specific to him. DD’s is discretionary and technically includes all GC, but it’s intended just for her. This will be made clear in a letter of wishes. (we understand it’s not legally binding)
• They are named in each of their respective applications for trusts bank accounts.

Should DS be named as a beneficiary in DD’s application even though the trust is not intended for him?

Both DCs IDs have been certified.

I wish Metrobank could just be clear in what they want. They are just saying there are no names beneficiaries even though DD’s name is in the allocation form and TRS.

"Should DS be named as a beneficiary in DD’s application even though the trust is not intended for him?"

From how Metrobank word things it would appear that, yes, they require all beneficiaries to be named. Since the trust gives a class of beneficiaries (ie 'grandchildren') instead of just naming your DD then it appears that they do want the names of all the grandchildren.

Although the trust may not be intended for your DS, from what you have said he is also a potential beneficiary of that trust. As a result, Metrobank want his details as well.

.

"They are named in each of their respective applications for trusts bank accounts."

"DD’s is discretionary and technically includes all GC"

It's not just a case of being "technically" - the trust does include all GC and the paperwork for the application needs to reflect that.

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"They are just saying there are no names beneficiaries even though DD’s name is in the allocation form and TRS."

I take it that was a typo and you mean application form to open a Metrobank account?

It may be that the solicitor and/or your parents incorrectly completed the form and left out the names of your DD and DS. Perhaps they just entered "grandchildren" instead of the names of both grandchildren and copies of their birth certificates if under 18?

If that is the case, then all that Metrobank are looking for are the names of the GC and copies of their ID if they are under 18.

Thanks. Yes they included DD as a beneficiary in the application form/TRS but not DS, so it sounds like we need to add him in. Both have had their ID certified.