From the family with operating companies and charitable foundations, to the wealthy client from a civil law country, the Private Trust Company ( “PTC”) may be the ideal solution on a number of different levels, including control, influence, privacy, continuity, flexibility, education and empowerment, and cost efficiency.
That is why Private Trust Companies have become a preferred tool in the structuring of the estate and inheritance planning needs of the very wealthy client. A PTC is a company formed for the express purpose of acting as trustee of a specific trust, or group of trusts. As such, an individual can retain control over the administration of his/her own trusts by establishing a PTC to act as trustee for these trusts. Where the individual is so minded, the PTC can also act as trustee for trusts settled by family members. The benefits of a PTC are then greatly multiplied for current and future generations. A Private Trust Company does not provide banking or investment services. Unlike “public” trust companies, it cannot provide trustee services to the public.
In The Bahamas, a PTC does not carry on trust business and is therefore exempt from licensing requirements; however, a regulated Bahamian service provider must provide certain functions such as anti-money laundering and due diligence reviews.
This Guide provides an overview of the approach taken to PTCs, including key highlights of the legislation, the relationship with Trusts and Foundations, and procedures for establishing and administering PTCs.