PRIVATE TRUST COMPANIES
A private trust company (“PTC”) is a company established for the purpose of acting as a trustee for a single trust or multiple related trusts.
Whilst retaining all the normal benefits of a New Zealand trust, PTCs offer a number of additional benefits to wealthy families and individuals.
A PTC allows greater flexibility in wealth planning and gives settlors the chance to retain some involvement in the management of the trust, for instance through directorships or shareholding.
They also make it easier for the trust to hold unusual assets, and provide for ease of administration (including opening bank accounts and brokerage accounts) as only a single trust or multiple related trusts are associated with each PTC.
PTCs also allow for younger family members to be gradually introduced to the management of trust assets. A PTC is a discrete entity dedicated to the management of family affairs and allows inexperienced beneficiaries to be granted more control as their knowledge grows.
The use of a PTC also offers clients the reassurance that their assets are totally separated from any other trust and allows them to manage fiduciary risk if desired. Migration of PTCs can be achieved with relative ease should it become necessary.
Whilst retaining all the normal benefits of a New Zealand trust, PTCs offer a number of additional benefits to wealthy families and individuals.
A PTC allows greater flexibility in wealth planning and gives settlors the chance to retain some involvement in the management of the trust, for instance through directorships or shareholding.
They also make it easier for the trust to hold unusual assets, and provide for ease of administration (including opening bank accounts and brokerage accounts) as only a single trust or multiple related trusts are associated with each PTC.
PTCs also allow for younger family members to be gradually introduced to the management of trust assets. A PTC is a discrete entity dedicated to the management of family affairs and allows inexperienced beneficiaries to be granted more control as their knowledge grows.
The use of a PTC also offers clients the reassurance that their assets are totally separated from any other trust and allows them to manage fiduciary risk if desired. Migration of PTCs can be achieved with relative ease should it become necessary.
