Best banks for the usd 100,000 trust or foundation

Borg · Oct 6, 2023

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 · Oct 6, 2023

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

Borg · Oct 6, 2023

Martin Everson said:
Whats wrong with your local banks? Your based in Malta right?

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 · Oct 6, 2023

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 · Oct 6, 2023

Borg said:
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.

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 · Oct 6, 2023

Borg said:
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.

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

Borg said:
What suggestions/recommendations you might have?
Where to search for the banks and what to avoid?
Many thanks in advance.

Larger deposit.

Borg · Oct 6, 2023

jafo said:
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.

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, the 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 not exactly what I require. Would need to think about that.

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

Larger deposit.

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

JackAlabama · Oct 6, 2023

Borg said:
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, the 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 not exactly what I require. Would need to think about that.

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

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

Borg · Oct 6, 2023

Sols said:
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.

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

IoM, Gibraltar are expensive to 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 even more expensive to set up the trust.

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

I have relations with BoC in Cyprus, and my personal account there is still active. Just not too happy to use it for the long term 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 accumulate my modest earnings over time without any tragic consequences : )

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

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

jafo · Oct 6, 2023

Borg said:
and all trustees must be U.S. residents.

They make exceptions to this.

Talk to them.

myhand · Oct 7, 2023

Borg said:
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.

clever thinking indeed.

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

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

Borg · Oct 18, 2023

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

Martin Everson · Oct 19, 2023

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

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 · Oct 19, 2023

Martin Everson said:
Do not ever make the mistake of choosing a trustee in any jurisdiction that has no existing intermediary relationship with a top bank.

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

Borg · Oct 20, 2023

Martin Everson said:
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.

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.

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

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

Martin Everson · Oct 21, 2023

Borg said:
around 2-3 k per annum for the administration of the trust/foundation.

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

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

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 offshore bank.

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

Good luck anyway.

jafo · Oct 21, 2023

Martin Everson said:
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 offshore bank.

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

Good luck anyway.

Thank you! This is AWESOME advice!

Borg · Oct 22, 2023

Martin Everson said:
That's too low for any credible solution I had in mind.

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

Martin Everson · Oct 23, 2023

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

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

Alex Picot Trust | Jersey Trust Company

Alex Picot Trust is an independently owned, private client trust company located in Jersey, with a history spanning over 100 years.

alexpicottrust.com

landogarner · Feb 25, 2024

Martin Everson said:
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 offshore bank.

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

Good luck anyway.

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

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