This is the second article of our Asia Private Client & Trust Thought Series.
In today's complex wealth landscape, Private Trust Companies (PTCs) remain a popular tool for high-net-worth individuals and families seeking bespoke and sophisticated solutions for long-term asset protection, governance, and intergenerational planning.
A PTC is a company established solely to act as trustee for one or more related trusts—typically those created by the same settlor or family. Unlike professional trust companies, PTCs are not required to be licensed (subject to jurisdictional rules) and usually do not charge trustee fees. But their real value lies in the control, flexibility, and continuity they offer which allows for the development of highly customised wealth management structures carefully crafted to address a particular family's unique circumstances, objectives and long-term needs.
- Board Composition
For families hesitant to relinquish control over trust assets, a PTC offers a compelling solution. The board of directors can include a mix of family members and trusted advisors, allowing the settlor to retain influence over key decisions and the composition of the board without undermining the integrity of the trust. - Tailored Governance
A PTC's Articles of Association can be customized to reflect the settlor's intentions. It also serves as a platform for educating beneficiaries about the family's wealth and governance philosophy—an essential step in preparing the next generation. - Cost Efficiency
PTCs often offer a more cost-effective structure than professional trustees, especially for families managing multiple trusts or complex assets. - Structuring Options
While some families may hold PTC shares personally, this can raise tax and probate concerns. A common solution is to use a purpose trust to hold the shares, ensuring continuity without individual ownership. Alternatively, in the Cayman Islands, a Foundation Company can act as a PTC—offering legal personality without shareholders, further simplifying the structure.
As families become more global and asset classes more diverse, the need for customised, private, and flexible trust structures has never been greater. PTCs meet this need by aligning legal structure with family governance, values, and long-term vision.
Stay tuned for the next article of our Asia Private Client & Trust Thought Series, where we spotlight on other key topics shaping the offshore private client and trust landscape.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
