Private Trust Companies (PTCs) or Private Trust Foundations (PTFs) are most commonly used to act as trustees of private family trusts for wealthy families. They can also act as trustees of commercial trusts and to hold special purpose vehicles (SPVs) in financial or other structures.
The most popular use of a Private Trust Company (PTC) is as a trustee of private family trusts. Rather than transferring assets to a professional trustee, a PTC allows families to establish their own corporate trustee.
PTCs have a number of key advantages including the following:
- Family members can retain involvement and decision making powers in relation to the family trust by sitting on the board of directors or holding other key roles.
- Management of the PTC lies with the board of directors; a change of directors is generally less burdensome than a change of trustees.
- By keeping the trusteeship of a family trust within the family, confidentiality can be preserved.
- A PTC can be used to allow younger members of the family to be introduced to a family’s wealth and values in a controlled and structured manner.
- A PTC can be structured to ensure that the trustee will have a working knowledge in relation to the assets held within the underlying family trusts (such as a family business) and will be able to respond speedily whenever commercial decisions need to be made.
Key Features
Establishing Private Trust Company (PTC) structures
Providing one or more directors to sit on the board of the PTC
Providing high quality administration services
Hosting and attending board meetings of the PTC
Liaising with family offices and wealth managers
Working with leading lawyers and tax advisors
Key Contact
Naomi Rive
Group Director & Head of Private Wealth