Managing Family Wealth Through A Private Trust Company

One of the toughest challenges that wealthy families face is the preservation and growth of their wealth from generation to generation.  This challenge is compounded by the presence of potential threats like litigation, divorce, and the federal transfer tax system.

To combat these threats, wealthy families typically take advantage of planning strategies that involve the transfer of wealth to irrevocable trusts. Most wealthy families place a high premium on the ability to participate in the investment management of family wealth inside of irrevocable trusts. Unfortunately, it can be difficult to accomplish this goal when an independent individual or a financial institution is serving as trustee. As a result, wealthy families tend to seek and embrace structures that encourage and create opportunities for each generation to discuss and influence the management of family wealth held inside of irrevocable trusts. This article will examine one such structure, the private trust company.

Click here to read the article in it’s entireity:  605_ACTEC Article.pdf

This article was published in the Winter 2010 issue of ACTEC.

Click this link to access the American College of Trust and Estate Counsel website: