Private trust companies emerging as vehicle of choice for family office structuring


Family offices are increasingly preferred stewards of wealth, acting as gateways for (ultra-)high-net-worth families across the globe. While protecting and growing private wealth, they often act like an institutional player in terms of their governance, the tools they use, and the investment firepower they hold in the asset owner space.

Proper structure and governance are needed for the success of any organisation, and family offices are no exception. To that end, inevitable questions arise: how best to structure the family office itself and the underlying investments it oversees? How to ensure the two work in harmony?

In recent years, the private trust company (PTC) has emerged as one of the most popular family office structures across the globe. This should come as no surprise; the PTC is a powerful legal framework for preserving and enhancing a family’s wealth, streamlining governance, and optimising succession planning.

Broadly speaking, the PTC combines the structure and benefits of a professional corporate trustee with the flexibility to allow trusted advisors, family office leaders, and family members to participate directly in PTC operation and trust governance.

In STEP's newly released special edition of its Trust Quarterly Review, sponsored by IQ-EQ, I share six key benefits to using a PTC to hold and oversee a family office and outline how a PTC structure works in a family office context. Click below to download your copy of the report:

Download STEP Trust Quarterly Review '30 Years of Trusts' Special Edition