Bank Account for an Offshore Trust or Foundation

A Bank Account is generally not necessary for a Trust, because the Trust generally can make use of the Trustee's banking services.

For a Foundation, however, a bank account is often a necessity.

It might be tempting for you to make yourself the signatory for that account. If you do, you must also report it to your government by disclosing this on your tax return - and take the full consequences of this, which, in the USA, means complete reporting to the taxman of all the Foundation's financial activities, and acceptance of a personal tax liability for all profits made by the Foundation...

Let's assume you want a slightly different approach to this...

The simplest way is to ask a Council member or someone appointed by Council to set up the account and assume signing authority for it. This costs a little extra - but nothing in comparison to the taxes that would be your alternative. Such bank account signatories work like Council members or nominee Directors for an IBC. You can expect fees in the order of magnitude $200/year - plus minor charges for specific transactions.

Keep in mind that you do not want to use a bank account for investment. That would be foolish. You need the bank acocunt as a transition station for funds going in or out of the Foundation, so the vulnerability you assume by letting someone else take charge of signing the checks is negligible, unless you are a very lousy manager of investments...




Setting up a bank account is not free. You must expect to be charged a minimum of $200, as you will need to set up that account on behalf of the Trust/Foundation. Most banks will only establish such an account if they receive an opening deposit a minimum of $1,000 to the account, sometimes even $10,000. Even though this money is to be paid "out of your pocket", it really still is money that works for you, and you can withdraw it again when you close the account - if you ever want to do that.