Book review: Private Trust Companies: A Handbook for Advisers

Edited by Todd D Mayo TEP

Reviewed by Bernadette Carey TEP

When it comes to the formation and subsequent administration of a private trust company (PTC), questions abound. Why use one? How will it be owned? Who will run it? How will decisions be made? Where should it be domiciled? The answers to these questions and more are now set out in an easy-to-read and concise fashion in this latest specialist text.

In his introduction, Todd D Mayo TEP accurately characterises the book as a ‘compendium of wisdom’ from many leading advisors, offering a roadmap for families thinking about establishing a PTC and serving as a must-have guide for families who are already running one. The book is helpfully divided into parts: the opening section comprises a number of thematic chapters focused on the design and operation of PTCs, such as ownership and governance structures and tax and regulatory considerations, before rounding out with chapters from a wide range of jurisdictions (helpfully grouped into US and non-US categories).

The experience and specialist insight of the authors shines through in each chapter, and the content has clearly been designed to educate and deliver guidance in straight-talking terms. The discussion of tax and securities laws in the US is essential reading, as is the chapter on coordinating with the family office, which comes complete with helpful visual aids. Offshore lawyers will be more than satisfied with the detailed chapters discussing PTC legislation and related developments in jurisdictions such as Bermuda, the Cayman Islands and Hong Kong. A reality check comes in the form of a chapter foreshadowing an increase in disputes involving PTCs as their popularity grows, which provides a crucial analysis of problems to avoid.

The handbook is undoubtedly a comprehensive resource for families and their advisors, exploring the legal, regulatory and practical dimensions of forming and operating PTCs. However, it does more than that: it goes beyond the black-letter law to remind readers of the importance of good communication; strong relationships with third-party service providers; and protecting a family’s human, social and cultural capital. In sum, it is a fantastic guide for trust practitioners and trustees, and the best starting point for family offices considering a PTC. Spotlighting the vital role that such structures play in modern wealth management, the book is unquestionably set to become the best-selling roadmap for navigating the legal, regulatory and practical issues associated with the modern PTC.

Price: GBP175

Publisher: Globe Law and Business

ISBN: 978-1787423145