A Private Trust Company (PTC) is a limited company authorized to act as trustee of one or more family trusts. It is an alternative to using a professional trust company as the appointed trustee, and is used in cases where the settlor of the trust wishes family members to retain a degree of involvement in decisions relating to the trust. The PTC is not permitted by law to offer trustee services to the general public. A Private Trust Company operates under the provisions of the Private Trust Companies Act 2012-22.
Private Trust Companies: Some Points to Consider
-The board of directors of a PTC will usually include both members of the family, possibly the settlor of the trust and other immediate family, and trusted family advisers. In this way, the family can actively participate in the decisions that need to be taken by the PTC as trustee, including decisions relating to the control and management of companies owned by the trustee in a way that wouldn’t be possible if the trustee was a professional trustee company.
– In the event of any discord between the administrator and the client, the administrator of the PTC can simply be replaced without changing the actual trustee itself (which can be a protracted experience for both parties). Most importantly, the client’s chosen advisors can remain on the board of the PTC whilst a new administrator is sought.
– Due to the “closed environment” of the PTC, there is minimum risk posed to the wider business sector and law mandates that the Service Provider collect and maintain all transaction records and beneficial ownership information on its clients.
– The Settlor may be a director of a PTC. Other family members or trusted overseas advisers who are not resident may also be directors.
– A “Special Director” appointed to the Board must have training in this area and is also mandated to account for the day to day management of the PTC, as well as report any suspicious or illegal activity to the Ministry. This guarantees efficient and informed governance of the trusts for which the PTC is responsible.
– A PTC has no minimum start-up capital requirements and registration is relatively simple.
Please click here to download the PTC application form.
