Private Trust Company
When establishing a Trust, a family would appoint a professional Trust company to act as a trustee of the trust assets. However, quite often the key challenge for the trust company is lack of detailed knowledge of the family and its business. More often than not this involves the delicate issue of control and there will inevitably be those clients who are reluctant to relinquish complete control of their assets. As a solution to this issue Private Trust Company (PTC) can be established and ensure the correct levers are in place.
A PTC is a company which is the sole corporate trustee of the family trust. The board of directors of the PTC will include family members sitting alongside professional trust company officers. It is a particularly valuable structure for investors and family business’ wishing to maintain the control of the assets placed in the trust.
Control – The settlor may retain the power to appoint and remove directors of the PTC. As such, the settlor and their family have influence over administration, investment, and disposition of trust assets. This is particularly useful if the underlying assets are complex, high-risk or part of a family business.
Succession planning – Engaging younger family members in the decision-making process begins to prepare them to manage wealth effectively and responsibly.
Diversity of asset base – Professional trustees may be reluctant to hold certain assets; a PTC allows greater choice as to what investments may be made with the trust fund.
Continuity – The administrator may change but PTC will remain as the trustee.
FOA is a professional trust service provider and advises on efficient offshore trust structures for private individuals and families in order to meet their specific and personal objectives. Specifically, FOA specializes in the formation and continuing administration of PTC structures in several jurisdictions including Hong Kong, New Zealand, Seychelles and BVI.