At McHale & Co, we work with families every day who are doing the right thing—planning ahead to safeguard the future of a disabled or vulnerable loved one. For many, that involves setting up a Disabled Person’s Trust (DPT), a carefully structured legal tool that provides financial support without affecting eligibility for means-tested benefits.
But increasingly, we’re seeing a major stumbling block in practice: banks are refusing to open trust accounts, and the options available are becoming severely limited.
This is not just a minor inconvenience—it’s a serious barrier to effective planning and long-term support.
The Legal Framework Is in Place—So Why the Block?
Disabled Persons’ Trusts are well-established under UK law. They’re intended to level the playing field for disabled people by protecting assets and income from affecting their entitlement to benefits. Used properly, they allow families to provide extra support—whether that’s for therapies, specialist equipment, or enriching life experiences—without compromising the essentials.
But for the trust to function properly, it needs a trust account: a dedicated bank account from which the trustees can responsibly manage the funds. Without this, the trust risks being unworkable in practice.
A Shrinking Pool of Providers
We’ve seen, first-hand, banks that previously welcomed trust accounts now turning clients away. One well-known building society recently told a client they no longer offer these accounts due to concerns over unregistered trusts and HMRC compliance. While that may be understandable from a risk management perspective, it places an unfair burden on families who are doing everything correctly—and who are already juggling complex responsibilities.
Some banks and building societies may still offer trust accounts, but often with barriers such as:
- High minimum balances
- Monthly fees unless certain thresholds are met
- A requirement for the account to be opened via a solicitor or financial adviser
These conditions, while manageable for some, create disproportionate hurdles for families simply trying to support a vulnerable loved one.
This Isn’t Just Bureaucracy. It Feels Like Discrimination.
As both a solicitor and a parent of a disabled child, I’ve had to fight “the system” throughout my daughter’s education. The constant uphill struggle to secure the right support and services is exhausting—and it shouldn’t be this hard. I know what it feels like to be told “no” when the law says “yes.” That’s why I’m passionate about equality of opportunity for disabled people, and why this issue is so personal.
It is deeply frustrating that legislation created to protect and empower disabled people is being undermined by a lack of practical support. Families are being let down—not by the law, but by the systems meant to help enforce it.
What We’re Doing About It
To push for change, we’re taking our concerns directly to the top. We’re writing to UK Finance, the banking industry’s representative body, urging them to address the challenges DPT trustees face. Copies of our letter are also being sent to the Financial Conduct Authority (FCA), the UK’s financial conduct regulator, and the Prudential Regulation Authority (PRA), whose anti-money laundering guidance may be influencing banks’ cautious stance.
We’re calling on these bodies to:
- Provide clearer guidance to banks on how to manage trust accounts safely and fairly
- Reassure institutions that DPTs can be offered responsibly without disproportionate compliance burdens
- Reinstate practical, inclusive financial services that support—not hinder—families
What You Can Do Now
If you’re encountering difficulties in opening a trust account, here are some immediate steps:
- Ask your bank for written confirmation of their current policy on trust accounts.
- Ensure your trust is registered with HMRC via the Trust Registration Service (TRS), which may be a requirement for account opening.
- Contact McHale & Co for tailored guidance—we can help identify suitable providers and support you in escalating refusals where necessary.
- Monitor developments—we’re actively tracking this issue and will continue to advocate for better access and accountability.
We’re Here to Help
At McHale & Co, we don’t just draft trust deeds. We support families through every stage of the process—from legal setup to navigating the practical barriers that can stand in the way. If you’re trying to set up a Disabled Person’s Trust or are struggling to find a workable solution for your trust funds, get in touch. Let us help you turn legal protection into lived reality.
Disclaimer: This blog post provides general information and insight. It is not intended to be legal advice and should not be relied upon as such. For advice tailored to your specific circumstances, please contact McHale & Co Solicitors on 0161 928 3848 or email info@mchaleandco.co.uk. Our experienced Private Client team will be happy to assist you.