Wealthy families should consider establishing a Private Trust Company (PTC) to implement their trust planning objectives. PTCs are available from many of the jurisdictions from which we operate.
Combining the experience of family members with our technical knowledge has many benefits:
Appointing family members or the family’s trusted professional advisors to the board of a PTC enables the family to exercise an acceptable degree of control or influence over the future succession of the trust assets.
A PTC can help to reduce potential dilemma and deal more easily with family conflicts when it comes to making crucial decisions regarding the future of a family business.
A PTC is especially appropriate for holding certain higher-risk assets, such as a concentration of private company shares, or an investment in a business with a volatile value, which a professional trustee will usually not be keen to hold due to the lack of prudent diversification.
A carefully-structured board of directors may include certain family members and trusted professional advisors, which allows for more control or influence over the trust than if a professional trustee alone is acting as trustee. This is particularly attractive to settlors who do not originate from jurisdictions where there is a natural familiarity with trusts.
PraxisIFM has particular expertise in providing bespoke consolidated financial reporting services to multi-entity structures for family offices and other wealthy private clients, and these services are tailor-made for PTC structures. We can also provide an in-house tax compliance service for structures with a UK tax element.
We request that our clients take appropriate tax advice.