New Foundations For PTC's

For several years, private trust companies have been the vehicle of choice for administering the assets of wealthy families. Many variants have emerged, as each host jurisdiction has its own requirements for exempting a private trust company from its licensing and regulatory regime for trust companies offering trust services to the public. One of the main attractions of private trust companies is that decisions relating to the underlying trusts are made by directors, who are carefully chosen by the patriarch or family, often mirroring the boards of the operating companies within the structure.

The Control Issue

Where the private trust company is incorporated as a company limited by shares, the shareholder or shareholders will typically have the right to appoint and remove the directors. Too much control can have tax implications, so many clients will need to be able to demonstrate that they do not control the trustee of the trusts established for the benefit of