Michael Betley of Trust Corporation in Guernsey looks at the
roles foundations and executive entities can have in developing
private trust company structures.
When assessing the advantages of creating a trustee function in
a tax neutral jurisdiction, one is usually surrendering control of
one's assets to mitigate penal taxes and to facilitate the
smooth devolution of wealth between generations. A common theme
when addressing the structuring needs of the family centres around
the decision making processes. In a domestic environment, families
will very often choose individuals to act as trustees or
protectors, however, in the international context this is more
difficult.
The use of family or private trust companies (PTC) provides an
attractive solution. Whilst they are not necessarily the panacea
that many perceive them to be, PTC's are nevertheless a highly
attractive vehicle for wealthy families in dealing with their
wealth management needs. On the one hand a PTC
