Setting Up Bank Account for a Trust - PDF by tpv19755


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									Adult & Cultural Services

Setting up a trust

Improving the health and well-being of adults
Improving the health and well-being of adults

About this booklet

This booklet is for families, friends and other people interested
in setting up a trust to act on behalf of someone who uses adult
social care services. It describes what a trust is, how to set one up
and operate it.

This is a new booklet and we would like your views on it. There
is a reply paid tear off card at the back of this booklet for you to
tell us what you think of it.

    Adult Social Care

    Why set up a trust?

    Cumbria County Council’s Adult Social Care services are
    committed to offering service users greater choice and control
    over the services and support they receive. One way we have
    been achieving this over the last few years is through the use
    of ‘direct payments’.

    We are now introducing a new system called ‘self directed support’
    for all our service users. This enables people to plan their own
    support in the knowledge of the amount of funding that could
    be made available to pay for this. Self directed support offers
    a number of ways in which money can be used to arrange the
    support needed. Direct payments enable people to receive money
    and arrange their own support.

    However, some people may find dealing with direct payments
    difficult. For these people, another option is for these payments
    (actually indirect payments) to be made to a ‘trust’ who act on
    behalf of the service user.

Improving the health and well-being of adults

What is a trust?

A trust is a group of at least three people (the ‘trustees’) who will
act on behalf of, and in the best interests of a service user. In many
cases, they may receive and manage direct payments on behalf
of the service user, but trusts can be set up which do not handle
these finances. The trustees will have signed a ‘trust deed’ and a ‘trust

The trust deed defines the legal duties and responsibilities of the
trustees. Signing the deed means they are bound by the terms
contained in the deed as well as existing trust law.

Once set up, the trust will receive funds from Cumbria County
Council and possibly other sources such as the ‘Independent Living
Fund’. This money they receive becomes the ‘trust fund’.

There is a financial relationship between trustees and service user.
The trustees must follow the terms of deed. They would have
to repay to the service user any losses incurred if they were to
breach the trust.

    Adult Social Care

    Who should the trustees be?

    The trustees can be family members, wider contacts such as
    friends and neighbours and other people who know the service
    user well. Often, trusts are made up of family members but it is
    important that at least one trust member is drawn from a wider
    circle of contacts such as neighbours, friends and others. The
    service user cannot be one of the trustees nor can an employee
    of a provider contracted by the trust to provide services.

    There should be at least three trustees. If the number of trustees
    drops to two, at least one more will need to be appointed.

    The trustees must act and make decisions in the best interests
    of the service user. The service user should be at the centre of
    the trust’s work and should be consulted about decisions where
    possible. There is guidance available from the Mental Capacity Act
    about how to decide what is in someone’s ‘best interests’. Ask your
    social worker if you would like to more about this.

    Trustees should note that while the trust is a straightforward legal
    mechanism, it creates legal obligations on them. Trustees would
    not be paid but they may be able to be reimbursed for expenses
    if provision for this is included in the deed. Any provision for
    expenses should be proportionate to the value of the payments
    being received.

Improving the health and well-being of adults

How is the trust set up?

Once the trustees are identified, a bank account should be set
up in the trust’s name. The trustees will then need to produce
two documents:

   1 The trust deed - this is a written agreement in which the
     trustees make a commitment to carry out certain duties.
   2 The trust constitution - this defines the aims of the trust,
     how it will be run and who does what.

Guidance in the form of a sample deed and constitution are
included at the end of booklet. This is just a guide and it is
important that the deed and constitution reflect the individual
needs of the service user.

The trustees may wish to seek legal advice. This is not essential
but may be useful. Legal advice can explain to trustees their legal
obligations and can make sure the deed covers any possible
problems. Trustees may also wish to seek legal advice if the direct
payments being handled are large.

It is possible that the cost of setting up a trust could be met from
a service user’s direct payments. This would need to be detailed
in the user’s support plan which would be agreed by the social
worker. For more information on this, see our booklet ‘Your
support plan’.

    Adult Social Care

    Once the deed and constitution are ready, all the trustees must
    sign both documents in the presence of an independent witness.
    Copies of the documents should then be sent to the Direct
    Payments Administrator at your local Adult Social Care office.
    Once these are approved, the Administrator will send the trustees
    copies of direct payments paperwork which they will all need
    to sign.

    There is no need to inform the Inland Revenue if the trust will
    not generate any income.

Improving the health and well-being of adults

What will the trustees do?

Once the trust deed and constitution are signed and agreed and
direct payments are set up, the trustees must put the support plan
as agreed with the social worker into action.

The trustees will be expected to carry out the tasks set out in the
constitution. This will involve arranging care and support through
service providers and/or recruiting and employing support staff.
It will also involve holding regular meetings and managing the trust
bank account.

The trustees must follow the legislation and guidance from Adult
Social Care on how to manage and use direct payments. If we
do not think the payments are being used properly, we have a
duty to intervene and in some cases discontinue payments.

    Adult Social Care


    Setting up a trust will involve the following steps:

      1.    Assessment of need by social worker
      2.    The social worker identifies how much funding could be
            made available to arrange support
      3.    Support plan produced
            (see our booklet ‘Your support plan’)
      4.    Support plan agreed by social worker
      5.    Direct payments confirmed
      6.    Identify trustees
      7.    Set up trust bank account
      8.    Draw up trust deed and constitution
      9.    Seek legal advice if necessary
      10.   Trustees sign deed and constitution with independent
      11.   Trustees send signed deed and constitution to Adult Social
            Care for approval
      12.   Trustees sign direct payments paperwork
      13.   Direct payments made to bank account
      14.   Trustees arrange care and support
      15.   Trustees meet regularly to review care and support and
            financial arrangements.
      16.   Trustees meet regularly with social worker to review
            support plan.

Improving the health and well-being of adults

Where can I get more information?

The service user’s social worker will be able to provide you
with information and put you in contact with Direct Payment
Administrators in Adult Social Care.

For more information on direct payments and how they work,
see our booklet ‘Direct Payments - Your care, your choice’.

The Direct Payment Advice and Support Service are funded by
Adult Social Care to provide advice and support to people wanting
to receive direct payments. To speak to an Adviser or to obtain
more information about Direct Payments call 0845 1249300 or


     Adult Social Care

     How do I contact Adult Social Care?

     You can contact Adult Social Care, through Customer Services
     at the following local offices:

     Carlisle                            Eden
     Civic Centre                        Friargate
     Rickergate                          Penrith
     Carlisle CA3 8QG                    CA11 7NX
     Telephone 01228 227000              Telephone 01768 242242

     Allerdale                           Copeland
     New Oxford Street                   Somerset House
     Workington                          Duke Street
     CA14 2LW                            Whitehaven CA28 7SQ
     Telephone 01900 706325              Telephone 01946 852852

     South Lakeland                      Barrow-in-Furness
     County Offices                      Market Street
     Kendal LA9 4RQ                      Barrow-in-Furness LA14 2LH
     Telephone 01539 713377              Telephone 01229 407894

     For emergencies outside office hours, at the weekend or during
     bank holidays, the Out of Hours Service can be contacted on
     01228 526690.

Improving the health and well-being of adults

Sample deed

(Please note: the notes provided in italics are to help the trustees
develop the deed and would not be part of the final document.)

This declaration of trust is made the          day of          20

Hereinafter together to be called ‘The Trustees’.
The Trustees wish to provide care and support for
                                                           (name) of
(“The Beneficiary”) who has a disability, by means of a Direct
Payment under the Health and Social Care Act 2001.

For the sole purpose of the Direct Payments, an account has been
opened at                                (“The Account”), under the
name of                                                          Trust.

     Adult Social Care

     Sample deed

     Further sums will be credited to the Account by various agencies
     and institutions and in particular by Cumbria County Council and
     the Independent Living Fund.

     The money in the Account and any accretions to it, are thereinafter
     called ‘The Trust Fund’.

     The Trustees wish to declare the trusts on which they hold the
     Trust Fund and the income thereof. (This will entitle the Beneficiary
     to retain any interest that accumulates and means that the Trustees
     accept responsibility for the money that is held in the Trust Fund.)

Improving the health and well-being of adults

Sample deed

This deed witnesses as follows:

1. The Trustees, from the date of this deed, shall hold the
   Trust Fund and the income from it upon trust for the care
   and support of

2. The Trustees shall be entitled to employ, hire, engage, dismiss
   and pay out of the Trust Fund persons and carers to provide
   support and assistance to the Beneficiary and/or to contract
   with a suitable agency for the provision of support and care
   services for the benefit of the Beneficiary by a Direct Payment

3. The Trustees shall hold the Trust Fund for the purpose,
   as set out in clause 1. until such time as

   ceases to live independently, or dies, whichever occurs first.

4. The Trustees, or the survivor of them, shall have the power
   to appoint a new Trustee or Trustees.

5. The remaining Trustees will appoint an additional member
   if the number of Trustees falls below three. If the number
   of Trustees falls below two, immediate steps will be taken
   to appoint a new Trustee so that there is a minimum of two
   Trustees at any time.

     Adult Social Care

     Sample deed

     6. The Trustees shall not be entitled to invest any of the
        Trust Fund. However, interest earning current accounts
        can be used.

     7. The Trustees shall not be entitled to be remunerated for
        acting in their capacity as Trustee. Their role is purely voluntary.
        They shall however, be entitled to be reimbursed for the
        expenses which they reasonably incur in the performance
        of their duties as Trustees, as stipulated in the Constitution,
        which is to be amended from time to time.

     8. A Trustee shall be entitled to exoneration and indemnity
        from the Trust Fund for any liability loss or expense incurred
        under this deed or for any judgement other than arising out
        of his or her own wilful and individual fraud wrongdoing or
        neglect. (This means that if the Trustees are sued because the
        Trust Fund becomes liable for something e.g. employment claim,
        damage to property etc., the Trustees should be able to recover
        any financial loss from the trust Fund.)

        Each trustee will be personally liable for the misappropriation
        of any part of the Trust Fund for which he/she is solely or
        jointly responsible.

Improving the health and well-being of adults

Sample deed

IN WITNESS where the parties hereunto set their hands
as a Deed the day and year first before written.
(This is a standard phrase that must be used.)

SIGNED as a deed by the Said
In the presence of                              (name of witness)

SIGNED as a deed by the Said
In the presence of                              (name of witness)

SIGNED as a deed by the Said
In the presence of                              (name of witness)

     Adult Social Care

     Sample Constitution

     (Please note: the notes provided in italics are to help the trustees
     develop the constitution and would not be part of the final document.)

     The purposes of this Group of Trustees are:

     •	 To	solely	serve	the	need	and	wishes	of	

     •	 That	each	member	will	make	a	personal	commitment	to

        and establish and maintain a relationship with him/her.

     •	 To	actively	and	sensitively	advocate	as	necessary	for	in		      	

        different aspects of his/her life.

     (These are just examples of areas that can be covered, and it is
     up to each group of trustees to decide what should be included.)

Improving the health and well-being of adults

Sample Constitution

   •	 The	funds	administered	by	the	Group	of	Trustees	will	be	
      used solely for the purposes set out in the support plan
      that has been drawn up for

   •	 The	Trustees	and	Beneficiary	will	meet	regularly	to	review	
      the care that has been arranged for

       and adjust it as necessary.

   •	 The	Trustees	will	take	responsibility	for	recruiting	and	
      supervising carers, and ensuring that

       is happy with the care that is being provided.

   •	 Individual	tasks,	e.g.	supervision,	writing	cheques	and	
      completing monitoring forms may be delegated to one
      Trustee, but they will remain accountable to the other
      Trustees at all times.

     Adult Social Care

     Sample Constitution


     •	 There	are	to	be	three	Trustees	appointed	at	any	one	time.	

     •	 If	one	Trustee	wishes	to	resign,	they	shall	give	no	less	than		
                     weeks notice.

     •	 If	one	Trustee	does	resign,	the	remaining	Trustees	will	appoint
        an additional member if the number of Trustees falls below
        three, if the number of Trustees falls below two, immediate
        steps will be taken to appoint a new Trustee so that there
        is a minimum if two Trustees at any time.

Improving the health and well-being of adults

Sample Constitution


•	 There	shall	be	a	meeting	held	with	all/at	least	two	Trustees
   every              weeks / months.

•	 The	meetings	shall	be	chaired	on	a	rotating	basis.	

•	 For	a	decision	to	be	made,	there	must	be	not	less	than	
   two Trustees present. (It may be advisable for all Trustees
   to be present)

•	 Once	a	new	Trustee	has	been	appointed,	there	shall	be	
   a meeting to reassess the duties of each of the Trustees
   to consider which duties the new Trustee is best suited to.

Duties of trustees

•	 (Trustees	could	have	their	own	duties	e.g.	-	one	is	responsible
   for looking after the cash; one is responsible for keeping
   records/minutes of meetings; supervising/hiring staff and so on)

•	 (Each	Trustee’s	duties	should	be	listed	to	avoid	problems	
   later on.)

     Adult Social Care

     Sample Constitution


     •	 (The	amount	of	expenses	which	the	Trustees	are	entitled	to	should
     	 be	agreed	from	the	outset	e.g.	xx	pence	per	mile	for	petrol,	xx
     	 pence	per	minute	for	each	phone	call	made.	These	expenses	should
        be proportionate to the value of the direct payments.)

     All trustees should sign the Constitution.




If you require this document in another format (e.g. CD, audio
cassette, Braille or large type) or in another language please
telephone 01228 606060.

Bf¢e k¢c HC abÉ Bfe¡l ¢e Sl i¡o¡u f a Q¡e a¡q m Ae¤NËq
L l 01228 606060 eð l V¢m g¡e Ll¦ez

        01228 606060

Jeigu nor tum te gauti ši informacij savo kalba,
skambinkite telefonu 01228 606060

W celu uzyskania informacji w Pa stwa j zyku prosz
zatelefonowa pod numer 01228 606060

                                                                 10041 Design Cumbria County Council 3cStudio Tel: 01228 221731 / 221727
Se quiser aceder a esta informação na sua língua,
telefone para o 01228 606060

Bu bilgiyi kendi dilinizde görmek istiyorsanz lütfen
01228 606060 numaral telefonu araynz

September 2008
    Licence No CE77
                         Public Information Manager
                         Adult Social Care
                         Cumbria County Council
                         County Offices
                         LA9 4BR
Adult Social Care

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