Concept
Professional trustees have a downside: they are third-party companies, and the family loses some control. The solution for substantial capital is a Private Trust Company (PTC): the family's own trust company that acts as trustee for its trusts.
🍓 A PTC is "your own" trustee: a family company managing the family's trusts. It provides control and succession, but requires scale and competent governance to avoid becoming a shell.
How It Works
A PTC is a company whose sole function is to act as trustee for one or more family trusts. Its board of directors includes family members, trusted advisors, and professionals; the PTC itself is usually owned by a purpose trust or foundation, so it has no "owner" in the conventional sense.
Why Families Use It
A PTC gives the family a seat at the management table: decisions are made by a board that includes family representatives, not an impersonal trust company. This is convenient for assets requiring expertise (family business, specialized investments) and ensures continuity of management across generations.
⚙️ A PTC itself requires administration and often licensing or registration; having "your own" trustee does not exempt you from fiduciary standards—on the contrary, it raises governance requirements.
Jurisdictions and Threshold
🔗 Related
Family office · Trustee and Protector · How a Trust Works · Family office · Family Holding for Succession
Classic PTC jurisdictions include the Cayman Islands, BVI, Jersey, Guernsey, and Singapore. This is not a tool for everyone: it is justified with significant capital and complex structures, when the gain in control and succession outweighs the cost of maintaining the company.
💡 PTCs are often combined with a purpose trust and a family office—see Family office.
This material is for informational purposes only and does not constitute individual legal advice.