Private Trust Companies

A Handbook for Advisers

Consultant editor Todd Mayo

Publication date:

12 August 2020

Publisher

Globe Law and Business

ISBN-13: 9781787423176

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 5 Todd D Mayo UBS Part I. Design and operation of private trust companies Considerations when forming a private trust company 9 Todd D Mayo UBS Ownership and governance structures 31 Miles C Padgett Kozusko Harris Vetter Wareh Duncan LLP Vanessa L Schrum Appleby (Bermuda) Limited Coordinating with the family office 43 Sara Schroter Michelle L Wolfe Meritus Trust Company Limited Facilitating essential communication with family members 63 Babetta von Albertini Institute for Family Governance Helping hands: utilising service providers 85 Ryan M Harding President of a Nevada family trust company Jonathan W Motto McDermott Will & Emery LLP Internal controls 101 Elise J McGee McDermott Will & Emery LLP Beneficial ownership registers 115 Paolo Panico Paolo Panico’s Law Chambers Private Trustees SA US tax and regulatory considerations 143 Osvaldo Garcia Sasha Grinberg Dorothy Mehta Cadwalader, Wickersham & Taft LLP Disputes involving private trust companies 165 Nicholas Holland Joseph J Viviano McDermott Will & Emery LLP Part II. Non-US jurisdictions Bermuda 181 Ashley Fife Keith Robinson Carey Olsen British Virgin Islands 191 Andrew Miller Bedell Cristin Cayman Islands 201 Andrew Miller Bedell Cristin Hong Kong 211 Patricia Woo Squire Patton Boggs Jersey 221 Robert Dobbyn Sevyn Kalsi Walkers (Jersey) LLP Part III. US jurisdictions Florida 233 Christopher W Boyett Nichole D Scott John L Stansbury Holland & Knight Nevada 243 Gregory E Crawford Alliance Trust Company of Nevada Robert E Armstrong Lance N McKenzie McDonald Carano New Hampshire 261 Todd D Mayo UBS South Dakota 305 James Paladino South Dakota Planning Company Matthew Tobin South Dakota Trust Company LLC SDTC Services LLC Tennessee 323 John M Bunge Aaron B Flinn Richard A Johnson Jill C Mastroianni Waller Lansden Dortch & Davis LLP Wyoming 335 Christopher Reimer Amy Staehr Long Reimer Winegar LLP About the authors 345 About Globe Law and Business 357

Private Trust Companies is a balanced, thorough and informative canter through the world of PTCs. The contributing authors are each high calibre private client advisers and this is evident from the quality of their contributions. While PTCS may appear complex to the uninitiated, this volume explains in clear, concise and understandable terms the reasons why one may use a PTC while ensuring the reader has enough detail to adequately weigh up the pros and cons. The decision facing potential users of PTCs will often cover practical and emotional areas and this book seeks to address those areas and the challenges that family decision makers will encounter. There is also a strong focus on the regulatory and legal frameworks in which PTCs operate across a wide range of jurisdictions. Many of the contributors draw upon relevant case studies and these highlight the issues that trustees must navigate in the delivery of their duties. This approach is very informative as it provides insight to those who may sit in a different role to the trustee. Quite often clients and other advisers do not have this perspective and this books seeks to address an often ignored position. The in-depth approach taken by the publishers in putting this title together ensures that it will become a very valuable reference point for clients and their advisers alike.