Private Trust Companies

This handbook is a comprehensive resource for lawyers, accountants, family office executives and any others who advise ultra-wealthy families on private trust companies. Featuring chapters written by leading practitioners, it fully explores the legal, regulatory and practical dimensions of forming and operating a private trust company.

Ultra-wealthy families have incorporated private trust companies into their wealth structures with increasing frequency over recent decades. Private trust companies can offer greater control over the administration of the family’s trusts and can provide greater flexibility in the management of the trust’s assets. For many families, a private trust company is a natural complement to the family office, enabling it to include fiduciary services among the services that it provides to its members. Reflecting the rising popularity of private trust companies, more jurisdictions have enacted legislation allowing them.This handbook is a comprehensive resource for lawyers, accountants, family office executives and any others who advise ultra-wealthy families on private trust companies. Featuring chapters written by leading practitioners, it fully explores the legal, regulatory and practical dimensions of forming and operating a private trust company.A series of chapters examines the relevant law in prime jurisdictions including Bermuda, the Cayman Islands, Hong Kong, Jersey and key US states. Other chapters focus on organisational and operational issues, such as designing a private trust company’s ownership structure, implementing proper internal controls, outsourcing services, working with professional advisers, managing trust investments and managing inter-jurisdictional activities. Important matters like coordinating with the family office, communicating with family, protecting privacy and handling disputes involving private trust companies are also covered.Contributors include practitioners from Appleby, Bedell Christin, Carey Olsen, Cadwalader, Day Pitney, Holland & Knight, McDermott Will & Emery, Meritus Trust Company, Saffery Champness, South Dakota Trust Company, Squire Patton Boggs, Walkers, Wickersham & Taft and Withers.

Introduction 5Todd D MayoUBSPart I. Design and operation of private trust companiesConsiderations when forming a private trust company 9Todd D MayoUBSOwnership and governance structures 31Miles C PadgettKozusko Harris Vetter WarehDuncan LLPVanessa L SchrumAppleby (Bermuda) LimitedCoordinating with the family office 43Sara SchroterMichelle L WolfeMeritus Trust Company LimitedFacilitating essential communication with family members 63Babetta von AlbertiniInstitute for Family GovernanceHelping hands: utilising service providers 85Ryan M HardingPresident of a Nevada family trust companyJonathan W MottoMcDermott Will & Emery LLPInternal controls 101Elise J McGeeMcDermott Will & Emery LLPBeneficial ownership registers 115Paolo PanicoPaolo Panico’s Law Chambers Private Trustees SAUS tax and regulatory considerations 143Osvaldo GarciaSasha GrinbergDorothy MehtaCadwalader, Wickersham & Taft LLPDisputes involving private trust companies 165Nicholas HollandJoseph J VivianoMcDermott Will & Emery LLPPart II. Non-US jurisdictionsBermuda 181Ashley FifeKeith RobinsonCarey OlsenBritish Virgin Islands 191Andrew MillerBedell CristinCayman Islands 201Andrew MillerBedell CristinHong Kong 211Patricia WooSquire Patton BoggsJersey 221Robert DobbynSevyn KalsiWalkers (Jersey) LLPPart III. US jurisdictionsFlorida 233Christopher W BoyettNichole D ScottJohn L StansburyHolland & KnightNevada 243Gregory E CrawfordAlliance Trust Company of NevadaRobert E ArmstrongLance N McKenzieMcDonald CaranoNew Hampshire 261Todd D MayoUBSSouth Dakota 305James PaladinoSouth Dakota Planning CompanyMatthew TobinSouth Dakota Trust Company LLC SDTC Services LLCTennessee 323John M BungeAaron B FlinnRichard A JohnsonJill C MastroianniWaller Lansden Dortch & Davis LLPWyoming 335Christopher ReimerAmy StaehrLong Reimer Winegar LLPAbout the authors 345About Globe Law and Business 357