IBUK Trust Account FAQs
Can I open a Trust account with IB UK?
Yes, you are able to open a Trust account under the IB UK legal entity. To open a Trust account, follow these steps:
- From IBKR’s webpage, select Open Account (https://www.interactivebrokers.co.uk/Universal/Application?locale=en_US)
- Click on Start Application
- The Open an Account page will be presented and you will need to Create a Username and Password
- After you enter a username and password and select your country, click on Create Account
- The next screen will allow you to select the account type: Individual followed by Trust
- Follow the remaining steps to complete the application.
What is a Trust Account?
A trust account is a legal arrangement through which funds or assets are held by a third party (the trustee) for the benefit of another party (the beneficiary). The beneficiary may be an individual or a group. The creator of the trust is known as a "grantor" or "settlor."
Main features of a trust:
- Ownership of the assets must be transferred to the trust. This action is called "funding the trust."
- The trustee must be a mentally competent adult and can be anyone the grantor trusts and who has accepted the responsibility of handling the trust account.
- Subject to terms of an agreement that states otherwise, the trustee has the authority to make changes to the account, including to transfer assets, close the account, open a sub-account and name additional beneficiaries or another successor trustee.
- The trustee has a fiduciary duty to consider the best interests of the beneficiaries first in any decisions.
- The trustee is responsible for annual tax returns and may be required to file regular accountings at the request of beneficiaries, depending on state law.
- All distributions to the trust beneficiary and other related expenses must be paid from the trust account.
Can I appoint a financial advisor to manage, on a discretionary basis, my IBUK Trust account?
Yes, you can appoint a financial advisor to manage your IBUK Trust account on your behalf.
Can I trade on margin in the IBUK Trust Account?
Yes, you are able to trade on margin in an IBUK Trust Account as long as the trust account qualifies for margin.
What is the annual fee or charges for the IBUK Trust Account?
There is no annual, custody, platform or minimum fee for an IBUK Trust Account. The IBUK Trust account will be charged commissions for trades.