A Private Single Family Trust Company (PSFTC) is a state-chartered entity designed to provide fiduciary services to families. A PSFTC is distinct from a “family office” in that it can serve as a fiduciary under state law.
A PSFTC is an attractive alternative to designating a traditional trustee(s) – individual or corporate. Establishing a PSFTC in Wyoming allows a family to take advantage of Wyoming’s tax and statutory benefits. Over time, a PSFTC can become trustee for an unlimited number of related trusts governing both business and personal holdings, providing a more cost effective, efficient and flexible infrastructure.
Advantages in Establishing a PSFTC
There are various advantages to a family in establishing a PSFTC, but some of the primary advantages include:
- Permits the family to retain control over all essential matters.
- Allows the family to retain decision-making control regarding investments.
- Minimizes concerns about the succession of trustees.
- Offers a high degree of privacy, creditor protection and a minimum amount of bureaucracy.
- Provides a method through which younger, rising generations can learn about the family’s assets, it’s methods of governance, and gradually assume the responsibilities of stewarding the family wealth.
- Supports an inter-disciplinary collaborative team that operates under a Family Ethos.
Families that already utilize a family office structure are well-suited to create and integrate a Private Single Family Trust Company. A PSFTC can take on many responsibilities commonly performed by the family office, including investment and financial management, professional and administrative support, accounting, and recordkeeping. The families can choose their long-time trusted advisors to run the PSFTC, while concurrently integrating the next generation into the family’s wealth planning and management. They can also operate separately from the family office, while still relying on it for administrative and back office support.