Private Trust Companies - The Concept And The Structure

Wealthy individuals are frequently understandably reluctant to hand over total control of their assets to others. In these circumstances the creation of a private trustee company ("PTC") in Bermuda, to act as trustee of the family or (corporate) group trusts, provides an effective solution at a reasonable level of cost. A company having the power to act as trustee over a particular trust or group of related trusts is incorporated. The client, or his family, or appropriate group executives can influence policy and assist with investment decisions by serving on the board of directors of the PTC or on an advisory committee to the Board or under contract with the PTC. This also allows professional advisers to be involved as directors and/ or company administrators, rather than as personal trustees, where potential liability can be substantial (i.e. where high risk assets or trading operations are owned by the trust).