Private Trust Companies
Increasingly clients are looking at the flexibility and economic benefits of establishing their own Cayman Islands Private Trust Company (“PTC”) to serve as trustee of their family trusts.
The principal objective of a PTC is to act as trustee for an individual family or group of related trusts.
Benefits
- Offers discrete management of family trusts
- Allows control retention of the trust structures, as Reserved Powers may be insufficient
- Flexibility on involvement levels and wealth management strategic decisions
- Structure may discourage claims by family members against trustees
- Costs compare favourably to “standard” trust structures
- Management decisions for the underlying assets can be taken by PTC Board, whereas an institutional trustee may require internal consent
- Service Provider can be changed more easily than a change of trustee
- To carry on trust business in the Cayman Islands, a private trust company requires a licence from the Cayman Islands Monetary Authority (“CIMA”). Currently this Legislation is being changed to streamline & simplify the requirements of PTC’s under the proposed amendments to the Trust Law.