How do I set up an informal trust account for a family member or friend?
1. Individuals requesting this type of account should already have a Banking relationship with the financial institution. 2. The request should come from an existing customer who wants to open the account to collect funds to benefit an individual, family or group which has met with a personal tragedy. Example: John Smith’s wife passed away unexpectedly. John and his wife have 3 children. The suggestion is made that John may want to consider setting up a donation account as people may want to provide him monetary support to assist with caring for the children. John cannot set up an In-Trust donation account with himself as the beneficiary. An independent 3rd party (family friend or relative) must set up the account (at their own financial institution) with the money collected being held “in trust” for John and his children. 3. There are potential tax liability issues that may need to be considered prior to opening the account and therefore a Chartered Account should be consulted. 4. The
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