A Private Trust Company (PTC) can be a powerful tool in succession planning and wealth preservation, especially for high-net-worth families. Established by or for a single family to act as trustee of one or more family trusts, the governance is controlled by a board appointed by the family (often through a holding structure) and are designed for families who want more control, privacy and flexibility in managing their wealth.
The importance of succession planning has been highlighted by STEP (The Society of Trust and Estate Practitioners) revealing that over 69% of family business owners don’t have a succession plan in place outlining what will happen to their assets after their death.
Often misunderstood but PTCs continue to allow families/business owners to maintain control over the business whilst also ensuring all assets are transferred as per their wishes. When placing shares or assets into a trust, the owner can still designate family members as potential beneficiaries whilst also still maintaining control and oversight over the assets and their distribution.
Succession planning isn’t just about the movement of assets; it’s also about how the business is structured for the future generations. This could involve setting up structures such as family investment companies, partnerships or companies, with clear voting provisions that ensure control remains within the family.
Key features of a PTC include:
Family Control and Governance A PTC allows family members to sit on the board or have input via family councils or protector roles. This ensures multi-generational involvement in decision-making ensuring that values and long-term visions of the family are upheld.
Continuity of Trusteeship Unlike individual trustees, a PTC doesn’t die, retire, or move away. Providing stability and continuity for managing family wealth across generations.
Customised Decision-Making The PTC can tailor its decisions to reflect the family’s specific goals, circumstances, and risk appetite — more so than a professional trustee bound by strict fiduciary policies.
Integrated Wealth Management A PTC can coordinate the family’s legal, tax, and investment advisors under a single governance framework, enabling a holistic, multi-disciplinary approach to managing complex wealth.
Dispute Minimisation By bringing family members into the governance structure, a PTC fosters transparency and shared purpose, helping to reduce conflict and ensure that younger generations are educated and engaged.
Privacy and Confidentiality PTCs can enhance confidentiality, as the structure consolidates governance under a private entity rather than relying on third-party trustees.
Alignment with Family Office Functions Many families integrate a PTC with their family office, creating and centralising structure for wealth management, philanthropy, tax planning and succession.
Is a PTC Right for Your Family?
A Private Trust Company may be the right solution if:
- Your family has complex or substantial wealthA PTC becomes more cost-effective and strategic when managing significant, multi-layered assets.
- You wish to maintain long-term control over trustee decisionsA PTC allows family members and trusted advisors to influence how wealth is managed and distributed, in line with your family’s values and goals.
- You require confidentiality and multi-generational succession planningPTC structures support private, seamless transitions of control and assets between generations, minimising public disclosure and potential conflict.
- Your family operates across multiple jurisdictions or owns diverse assetsA PTC provides the flexibility and infrastructure to manage cross-border holdings and varied asset classes under one governance framework.
Which Jurisdiction?
When choosing a jurisdiction to establish a PTC both the Isle of Man and Jersey are prominent options, especially for HNWIs seeking privacy control and tax efficiency in wealth structuring. Each has strengths depending upon the needs of the settlor, structure complexity, regulatory expectations and service provider availability.
Key features for both jurisdictions:
| Features | Isle of Man | Jersey |
| Regulation of PTCs | Unregulated if non-commercial and serving a single-family. Clear exemption under Fiduciary Services Act 2005. | Unregulated under Financial Services (Jersey) Law 1998, if not offering services to the public. |
| Ownership Structure | Commonly a PTC can be owned by a purpose trust or foundation). | Commonly a PTC can be owned by a purpose trust or foundation). |
| Flexibility | Very flexible structure | flexible, but slightly more conservative approach in complex cases. |
| Taxation | 0% standard rate | 0% standard rate for most companies |
| Withholding tax | None on dividend or interest | None on dividends; withholding tax on some types of payments to non-residents |
| IHT | None | None |
Ultimately, the client’s specific goals, family dynamics, asset types, and cross-border considerations (such as tax residency, reporting obligations, and succession planning) will determine which jurisdiction is most appropriate. Their existing legal, tax, and fiduciary advisors will usually have strong preferences based on the client’s domicile and tax exposure as well as asset location and type.
Typical Structure:
- PTC is commonly incorporated as a private company limited by shares
- Ownership is held via a non-charitable purpose trust or foundation to remove direct family ownership
- Board of Directors include a mix of family members and professionals
- PTC acts as trustee of one or more family trusts
- Trust holds assets which may include investments, operating business and property
How can Boston Multi Family Office Help?
At Boston, we understand that every family’s circumstances and values are unique. Our experienced team is here to work collaboratively with you and your advisors to design and implement a structure that supports your family’s long-term security, cohesion, and success.
We are ideally positioned to assist family businesses that wish to expand internationally. We are a multi-jurisdictional fiduciary service provider with offices in the Isle of Man, Jersey, Malta and the UK that implement tailored governance solutions to clients.
Should you wish you to discuss the topic in more detail or interested to hear how Boston Multi Family Office can assist you, please contact enquiries@bostonmfo.com