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Trust Bank Account @ BCU
Hi everyone, I am new here and warned to share my experience in regards to opening a bank trust account…..
Last Thursday we attended an appointment with the manager of our local BCU branch.
The interview went very well and the manager Matt was open and friendly about opening our unregistered trust account. We went through all the questions easily and I was surprised that he didn’t ask for an ABN or TFN.
He said ok, that’s all I need, and that he would contact in a day or so after the head office had reviewed our info.
On Monday lunch time, he called me to say that our application has been refused and I asked why .
He said according to the KYC requirements, we didn’t sufficient evidence of the income stream for the trust and it wasn’t a Family trust .
He seemed quite surprised himself when I questioned the decision, and he said he thought the rules regarding unregistered trusts must have changed.
So now I’m wondering whether or not to try at the CBA as they have unregulated trusts on their website, but does anyone think I may have done something wrong in my first attempt ?
I wouldreally appreciate any feedback please 🙏💞🌺
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12 Replies
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Hello,
I’ve got a private trust with cba and didn’t have any issues.
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well its unregistered so it wont have an income. you could say it is for asset protection or for providing community services…see my previous post in the trust section on bank appointment.
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dont see it as a failure just a little stumbling block. If u wanted to stay with that bank be friendly and speak with the guy u spoke with ask him what can you do overcome the stumbling block. tell them again, if you want, that its going to be used for estate protection. add…if u want..that through the productivity of trustee and any appointed manager there will be at some future stage funds going in. otherwise, if they still unsure, say thank you for your efforts and time and go to another bank. best of luck and let us know how you go
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I’ve banked with Heritage for over 40 years, so when I took the trust deed in, I was surprised they needed a few days to process it. A week later, I had a phone call from the bank Johnny to say they couldn’t open it. He apparently called ‘someone’ to check because he said the Trust was tax exempt. I said, ‘Really? That’s a shame. We’ll have to take our business elsewhere.” He said that was just for the trust account, so I said I’d pick up the cheque as I had a few questions.
I asked where it said it was tax exempt, and he bumbled through the deed – he photocopied the whole deed, not just the front and back pages. It’s bank policy now? Eventually, he found the section about sustenance being exempt because he didn’t like the way it read. I assured him every red cent that goes into the account will have been taxed before it enters the account, so what’s the problem? ‘Oh, yes,’ he said. ‘They make sure they tax everything!’ I asked if there is any stipulated exemption on income tax in the deed, to which he agreed there was no such statement. I also said, so Heritage don’t open trust accounts for charities, or a trust account for a child or a pet? He wasn’t sure what to say to that.
He pointed out the discretionary powers, to which I answered yes, we will have the discretion to distribute funds as we see fit. Isn’t that what a discretionary trustee does?
So I asked for a new application in case I did something wrong, because I’m assured Heritage accept this product. “Who told you that?” I told him other customers I know and the trust makers.
He then pointed out the section on foreign entities/interference, to which I replied, “Isn’t that a good thing? We don’t want foreign bodies to interfere with our trust. Would you?” to which he had no reply.
He seemed very nervous, and I asked for his superior and their contact number to whom he referred, so I could speak with them, but then he didn’t know who I meant. He still hasn’t told me that information, so I wonder if I should call head office and speak with someone there. I suspect he read it and doesn’t feel confident as they’ve probably been warned about trusts and foundations. He seemed to be looking for excuses to put me off, but I’ll persevere. We’d prefer to stay with them if we can. I’ll return next week in the nicest possible way, and see how we go, otherwise all our savings may go and we’ll have to take our self managed Heritage super accounts to another bank as we hoped to run them through the Trust account.
The bank was very busy, by the way with lots of people opening accounts and withdrawing cash, so I’ll try again, and see what happens.
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Thanks for sharing, great responses to all of his misgivings!!
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So I’m going to try the CBA this week…… here’s hoping 🤩
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Good luck. I’ll see how I go with Heritage too
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I’ve hit a bump with our account at Heritage. Since we chose Cook Islands to set our trust up, I just found out Heritage cannot accept that apparently (at least our branch?) I’ll call head office on Monday. They check their system and can see it is set up in Australia, but governing laws are under Cook Islands. If it’s unregistered, that shouldn’t matter, should it? The manager returns on Monday so I’ll check again then, or we go to another bank. Any suggestions?
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No sorry I’ve never heard of this sort of problem before. A good question for Mark though at the next Q and A.
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Hi all, I had my appointment at CBA Thursday and it went very well. The guy was super helpful and because he hadn’t opened this kind of account before, he was wanting to learn! The only glitch was which industry? I didn’t know what to say, but we muddled through and he thought it wasn’t that important, but I’m wondering if it does? Can anyone please let me know…… as the account is open as a Business transaction account and the cards are my name ATF the trust name.
If the type of industry matters, I’ll change it. But pretty happy right now 🥳🌠💫
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well done….i was the same just kind of stumbled through it..thats the learning and growing !…dont know about the industry part …i dont think thats aproblem….they just need to tick a box….i think from memory i had a similar question and there was a option for “other” and she just ticked that! card sounds ok .. mine has my name on it and trust name. i did see in one of the q and a on trusts that mark said just the trustee name on card is fine…..anyway…well done
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