What is a business trust account?
A business trust account is a financial arrangement where funds or assets are held by one party (the trustee) for the benefit of another party (the beneficiary) in a business context. This type of account is commonly used in various business transactions to ensure the proper management and distribution of funds.
You can also place free funds on a savings account.
Calculate your future income on a savings account (example):
| Amount, $ | Rate, % | Accrued %, $ |
| 25,000 | 3.55% | 888 |
| 25,000 | 3.65% | 913 |
| 25,000 | 3.75% | 938 |
| 60,000 | 3.85% | 2,310 |
| 60,000 | 3.95% | 2,370 |
| 60,000 | 4.05% | 2,430 |
| 140,000 | 4.15% | 5,810 |
| 140,000 | 4.25% | 5,950 |
| 140,000 | 4.35% | 6,090 |
| 340,000 | 4.45% | 15,130 |
| 340,000 | 4.55% | 15,470 |
| 340,000 | 4.65% | 15,810 |
How do I open a business trust account?
Clearly define why you need a trust account, such as for escrow services, client funds management, investment pooling, or property management. Determine whether you need an escrow trust, client trust, joint venture trust, or another type of business trust.
Select a Trustworthy Individual or Institution. The trustee can be a professional trustee, a financial institution, or a qualified individual. Ensure the trustee understands their fiduciary responsibilities, including managing the trust according to its terms and acting in the best interest of the beneficiaries.
Consult with a lawyer experienced in trust law to draft the trust document. Choose a reputable financial institution that offers trust services for businesses.Evaluate different institutions based on their services, fees, and experience in managing business trust accounts.
Provide a copy of the trust agreement drafted by your lawyer. Gather necessary business documents, and identification documents for the trustee(s), such as passports or driver's licenses.
Schedule an appointment with the bank or trust company to open the account. Provide all required documents, including the trust agreement, business documents, and identification. Fill out any application forms provided by the financial institution.
Deposit the initial funds or assets into the trust account as specified in the trust document. Set up processes for ongoing contributions or deposits as required.
See the similar FAQ about Canadian banks:
- B2B bank RRSP loan
- CIBC collections contact
- CIBC loan and financial calculators
- Citizens Bank student loans
- Coast Capital calculators
Details of companies offering the financial services:
Canadian Western Bank
Head office’s address: 10303 Jasper Ave, Edmonton, AB T5J 3N6
Contact center: 780-423-8801
Phone: 780-423-8888
Web-site: http://www.cwbank.com/
Swift code: CWBKCA61
Stock code: CWB
BSB: 030
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002