The emergence of Private Trust Companies (“PTCs”) has largely come about as a result of the leap of faith expected of settlers when surrendering control of trust assets to independent trustees. PTCs are designed to help the trust settler retain an acceptable degree of influence over trustee actions.
The key features of a PTC are:
- Typically, a PTC will be formed as a company limited by shares, which does not have a different legal form from any ‘normal’ company.
- It is formed with the sole purpose of acting as a corporate trustee for one or more related trusts.
- It is normally a pre-requisite that the PTC is based in a nil or low tax jurisdiction.
- Ownership of the PTC can be structured in such a way as to keep it out of the estate of the settlor, should this be a requirement of the planning.
- Often a non-charitable purpose trust is utilised for ownership of the PTC, thus ensuring its removal from any estate.
- The board of directors of the PTC will typically consist of senior individuals from a licensed fiduciary service provider, such as Cavendish Fiduciary, but may also include the settlor or other members of the settlor’s family, or indeed other professional advisors.
The establishment of a Private Trust Company, alongside an associated trust structure with Cavendish Fiduciary, will provide settlors with the benefits of maintaining a satisfactory level of influence on the trust’s assets, as well as access to the many advantages of working closely with Cavendish Fiduciary.
Through our independence, professional standing and years of experience built up by our senior team in the trust arena, we are ideally positioned to act as directors of a Private Trust Company. Furthermore, Cavendish Fiduciary’s administrative services will ensure provision of the highest quality of licensed, administrative services.
Please contact either of the following members of our team with any Private Trust Company enquiries: