Home Forums Q&A Sessions Bank accounts for private trusts

last updated by Taz 3 months, 3 weeks ago
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    • #100009870
      ShmallShmoo9
      Participant

      Hi Everyone,

      I have read everything here on the site and I am still confused. I need to open an account for my new private trust. Marks said in the webinar we need a business account. But then others are saying we do not need a business account. Business accounts require ABNs and TFNs, yet our trust doesn’t pay tax.

      The other accounts suggested here are westpac community solutions one account, a not for profit transaction account. However, this account is linked to a business account?!

      Can anyone confirm what type of account we need please, and explain why? Thank you.

      Kindest regards

      Lindsay

    • #100009922
      Quantumage20
      Participant

      Hi Lindsay,

      I think the account you are after is a westpac community solutions, I have opened one for my foundation and due to the trust been not for profit, I suspect it may be the same account type. In terms of the TFN, you will need to be across the reason for it being tax exempt as just saying it is tax exempt will not get the job done, my suggestion is to do a search on the ATO website for Community services organisations and understand the requirements for been tax exempt as a community services organisation which aligns with the westpac community solutions account. I would also print out the page from the site of the requirements and taking it along on the day when you open the account. I had to hold my position in my situation as the banker (who was inexperienced in these account types) said I needed a letter from the ATO to confirm the tax exempt status which is rubbish, after I referred him to the ATO page I was able to walk him through why it was not needed. There is likely no ABN as it is not for profit but they will still ask you.

      I suspect that as it is a not for profit this may be the option to select otherwise you may have account keeping fees as well.

      Hope that helps.

      Thanks
      J

    • #100010137
      davidhrphillips
      Participant

      I’m also thinking of opening an ING orange account. They ask very little details, and it’s online, so I’ll give that a go.

    • #100011278
      Taz
      Participant

      Does anyone know… who is familiar with non registered trusts…

      Would you buy property (real estate) to be held in the trust from the trust bank account (capital would be transferred from trustee bank account) or from the personal bank account of the trustee?

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