Best banks for the usd 100,000 trust or foundation

[Borg]

Hi,

I am looking for a reliable bank that could open an account for the low-budget family trust with a monthly transfer into the trust account USD 5,000- 10,000 and a net worth of around USD 100,000 for now.
Predominantly I am looking for high-street or old enough banks ideally with a deposit guarantee scheme.
The best option for me would be some Asian banks in Singapore or Hong Kong, although such account opening is impossible there.
I presume the same is applicable to Switzerland and Liechtenstein although I am a bit scared to put my money there.
What suggestions/recommendations you might have?
Where to search for the banks and what to avoid?
Many thanks in advance.

 

[Martin Everson]

Whats wrong with your local banks? Your based in Malta right?

 

[Borg]

I have a residency there, but it is everything that is wrong with‌ them tbf. Firstly, they would never open an account for the offshore trust. Secondly, to‍ go to a Maltese bank is like to visit a pawnshop in Mumbai. I believe⁠ spiritually and culturally the experience would be very similar. On the top of that, the⁤ last thing I want to have in my life is to open an account for⁣ my trust in the home jurisdiction or the one that might imply any authority over⁢ me as an individual.

 

[Sols]

Where is the trust registered/set up? Usually trustees or the service provider you used are‌ able to arrange banking.

However, I've seen similar sized trusts set up and banked in‍ Isle of Man and Gibraltar (and banked there or in Jersey/Guernsey). It's quite expensive for⁠ a trust of this size, though. Chance of account opening also depends on nationality/residence of⁤ settlor, beneficiary, and other involved parties.

Cyprus might be another option, if you want to⁣ keep it outside of Malta.

 

[jafo]

100%! Good thinking! Super smart⁠ person!

I have several with Schwab One® Trust Account

Opened them a while back (many⁤ years ago). Never had an issue. I also opened them up with smaller $$$ quantities.⁣ My reasoning was: "Schwab and I are on a date, so it's best to take⁢ it in baby steps". Schwab NEVER disappointed.

 

[JackAlabama]

Nah, if︀ youre willing to go for these two asian places switzerland is for sure able to︁ match that experience and you should not be scared just be able to add a︂ few 0s to the amounts stated.

Larger deposit.

 

[Borg]

Looks like a perfect option for me. Reputable and low fees! Thank you⁤ for this information.

There is a small problem though:

• Step 1: Confirm that the trust⁣ is revocable.
  
• Step 2: Ensure the grantor(s),the individual(s) funding the trust,and the trustee(s),the individual(s) managing⁢ the trust,are the same person(s).
  
• Step 3: In order to qualify for this account, the︀ trust must have been established in the U.S. and all trustees must be U.S. residents.︁
  

I can consider setting up a South Dakota trust, but a revocable trust is not︂ exactly what I require. Would need to think about that.

Do you mean to actually︆ get more money or to submit an application to the bank with larger figures?

 

[JackAlabama]

Get more money.
Banks in all these 3 places want large deposits. Hong︁ Kong being the "cheapest", Switzerland the most expensive

 

[Borg]

It is actually in the⁢ process, I have a few possible options on the table, and setting up is really︀ not a problem. The primary places I thought are Belize, Nevis, and Seychelles. I am︁ very inspired by the idea of the Panama foundation but I understand that I would︂ have to forget about any accounts with Panama : )

IoM, Gibraltar are expensive to︃ administer, tbf. I can try to apply for some banks in IoM, such as Investec,︄ but I honestly do not think they would be interested. The Channel Islands are even︅ more expensive to set up the trust.

The set of settlor/beneficiaries is not to my︆ advantage as well, it is Ukraine and Argentina. I can put a dummy settlor and︇ leave only an Argentinian beneficiary, but I am afraid it might make the account opening︈ process even more difficult.

I have relations with BoC in Cyprus, and my personal account︉ there is still active. Just not too happy to use it for the long term︊ because of the history of BoC and not too clear position with its owners.

My main goal is simply to have an account for a trust where I can accumulate︋ my modest earnings over time without any tragic consequences : )

I can try to open with CIM bank.︎ Idk if that is a good option, or say Bank of Cyprus is better.

 

[jafo]

They make exceptions‌ to this. 😉
Talk to them.

 

[myhand]

clever thinking indeed.

it's not going to⁣ be easy, but worth to look into.

 

[Borg]

UPD: both CIM and BoC have successfully refused to consider the application : )
Any good banks for the offshore trust/foundation?

 

[Martin Everson]

What is your anticipated annual budget for maintenance of the trust and account‍ so I can make some suggestions?

P.S Do not ever make the mistake of choosing⁠ a trustee in any jurisdiction that has no existing intermediary relationship with a top bank.⁤

 

[jafo]

Can you give two examples here? One of how to do it and the other of‍ NOT how to do it?

 

[Borg]

around 2-3 k per annum for the administration of the trust/foundation.⁤ No underlying company is needed. I would like to be appointed as a signatory/co-signatory under⁣ the narrow special investment PoA.
Basically, there is nothing to administer, just to hold cash⁢ on the account. I am ok even if the trustee is not a signatory.

Well, they usually all have︁ some relationships with the top and not-so-top banks, right? After all, there is always a︂ direct relationship between yourself/client and the bank which decides on everything. I believe that in︃ 2023 there cannot be such connections that would make anyone onboarded to the decent bank.︄

 

[Martin Everson]

That's too low for any credible solution I had in mind.

How to do it: Find a trustee⁠ that has a long history of operation. Don't pick any trustee that was founded in⁤ last 20 years or basically with no track record. Make sure they work with at⁣ least one international bank with a long standing relationship. Plenty of major banks have offshore⁢ branches/entities around the world so don't accept them sticking your money in some local offshore︀ bank.

How not to do it: Pick a new trustee that has been operating for︁ less than 20 years is fintech focused, promises the world, asks no questions but who︂ also may work with a major bank. Don't touch any discount low cost solution provider︃ offering low prices, same day setup etc. If however you go this route you will︄ get exactly what you pay for long term sadly.

Good luck anyway.

 

[jafo]

Thank you! This is AWESOME advice! 😎

 

[Borg]

Will you share your solution with us and the fees required? Perhaps this‌ can be helpful for myself and someone else.

 

[Martin Everson]

Yes. You can look‍ at i.e Alex Picot Trust in Jersey with a RBS Jersey bank account I believe.⁠ 6-8k a year.

https://alexpicottrust.com

 

[landogarner]

Martin, I would be interested to learn more (and︃ I can spend more), would you please PM me ?