Jennifer Remondino, a partner in our Private Client and Family Office Practice Group, moderated a session last week at the Private Trust Company Fundamentals Workshop. The workshop was sponsored by the Family Office Exchange (FOX), and Warner is a member of their Thought Leaders Council. This workshop brought together professionals who work with or in private trust companies (PTCs) to share their experience and insight about the PTC’s role within a family enterprise with families who are considering forming a PTC or who are in the early stages of a PTC formation.
To help families considering a PTC formation, the FOX workshop included sessions on PTC strategy, structure, governance, location and regulatory examinations. Jennifer moderated the session entitled “Insights and Perspectives from Experience.” The main topics of discussion in that session included:
- How to leverage the PTC as a strategy for the family.
- Best practices for establishing operational guidelines for the PTC.
- How to define the roles of the PTC and the family office.
- Advice on how to integrate the PTC structure into the family system.
PTCs are growing in popularity with families having significant wealth, who create them to provide trust and fiduciary services for the family. A PTC typically works in conjunction with the family’s existing family office to increase the privacy of the family and its affairs and to meet the family’s needs with respect to trust administration, tax planning, philanthropy and engagement with family members.
Although they perform many of the same tasks as commercial trust companies, because PTCs do not provide services to the public, they currently are not subject to the same state regulations and reporting requirements as a commercial trust company would be. However, because many states do not have laws that authorize or recognize PTCs, a PTC must be formed in one of the handful of states that have enacted legislation authorizing PTCs.
A PTC can be an important tool to help a family manage and preserve their dynastic wealth. We can help you evaluate whether a PTC should be part of your family’s wealth management structure, and work with you to create one. To learn more about PTCs, please contact Jennifer Remondino at jremondino@wnj.com (or 616.396.3243) or contact Mark Harder at mharder@wnj.com (or 616.396.3225).
