If you’re wondering “Why does the bank need a copy of my trust?” you’re not alone…
In many cases, people set up trusts for privacy purposes, so being asked to disclose trust documents can be concerning.
With this in mind, we’re going to discuss what banks actually need to see and what they don’t need to see from a trust.
This is based on our team’s experience supporting individuals with opening accounts for trusts and accessing high-net-worth private banking more broadly.
Feel free to use the table of contents to jump ahead to any sections most relevant to you.
Table of Contents
- Why Does the Bank Need a Copy of My Trust?
- Important Banking Considerations
- Reasons Why Banks Request Copies of Trusts
- Do You Want Help Opening Bank Accounts?
Why Does the Bank Need a Copy of My Trust?
The bank does not need a copy of your entire trust. Instead, they will likely need access to specific information, which is provided in the Memorandum of Trust or a Certificate of Trust (typically provided by the bank).
Banks may also ask to review additional pages (typically the first and last page) of your trust documents to confirm the date of formation and that the trust has been notarized.
Of course, there are a number of variables that can impact the documents that might be requested or required. Two of the most important variables include the actions you are trying to take at the bank and the jurisdictions involved.
Let’s take a closer look:
1. What action are you trying to take at the bank?
For example, are you looking to open a bank account for an existing trust that already has assets contributed to it? Or, are you looking to have ownership of your personal bank account changed to the trust?
2. What jurisdictions are involved?
Different jurisdictions naturally have different rules and regulations that apply to account opening, change of account ownership, and generally dealing with trusts. Additionally, if your trust has been set up in a foreign jurisdiction, this may have additional implications for the documents that a bank will require.
But, before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Private Banking Starter Guide. It’s designed to help you navigate the complexities of opening private accounts while unlocking as much value as possible.
Important Banking Consideration
While most bankers are experienced with opening accounts for individuals and businesses, trusts (and similar estate planning structures) are not as common and fewer bankers deal with them regularly. This is especially true if you are dealing with bankers in retail banking divisions that do not commonly support high-net-worth clients of the bank.
As a result, bankers may request unnecessary trust documentation during the account opening process. They may not know that the information they require is available in the Memorandum of Trust or a Certificate of Trust.
With this in mind, it’s always best to first educate yourself on what is needed to achieve your goals so you can gently direct the banker to the information they require.
Alternatively, if you’re looking for where high-net-worth individuals bank, specifically want the answer to “Where do rich people bank?”, you’re in luck. We share details on where these client groups typically bank in the link above.
Reasons Why Banks Request Copies of Trusts
If a bank requests a copy of your trust, you should pause and consider whether this is an accurate request. As mentioned above, many bankers are unfamiliar with trusts and can unknowingly overreach during the account opening or asset contribution process.
With this in mind, there are two main scenarios that which a bank may request copies of a trust (or related documents), which include opening accounts for a trust directly or contributing assets to a trust.
If this happens and you are unable to convince the bank that the information they require is included in the Memorandum of Trust or Certificate of Trust, you may need to have your lawyer contact the bank to communicate with them directly.
Alternatively, if you are unable to convince your current bank that they do not need access to the intimate details of a private trust, it may be time to open accounts with a bank that respects your privacy and understands the intricacies of banking for high-net-worth individuals.
Banking jurisdictions worth considering include Monaco, Andorra, and Switzerland. If you’re wondering which client profiles are acceptable for these jurisdictions, or specifically whether or not a non-resident can open a bank account in Monaco, the answer always is: it depends. It depends on your citizenship, residency, banking needs, deposit level, and so much more.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
You can learn more on the products page from the main menu above.
