Structuring Private Family Trust Companies and SPEs for High Net Worth Individuals and Families

This CLE course will provide estate planning counsel and advisers with a practical guide to structuring private family trust companies (PFTCs) and special purpose entities (SPEs) for high net worth individuals and families. The panel will discuss the benefits and risks of PFTCs and other separate entities, describe ownership structures, and detail state law considerations in setting up PFTCs and other incorporated vehicles for holding family wealth.

A powerful estate planning tool for ultra-wealthy families, the PFTC is a separate entity, frequently state-chartered, designed to provide fiduciary services to family members. Generally structured as limited liability companies or corporations, PFTCs are authorized under state law to serve as fiduciary for families.

Several states have well developed legal structures to accommodate PFTCs. These states have relatively similar definitions of family members eligible to be served by the PFTC and the extent of services and transactions a PFTC may provide. These companies can operate in conjunction with, or in place of, family offices and provide privacy, asset protection planning, flexibility, succession stability for families with significant wealth, and liability protection for trustees.

PFTCs share significant similarities with SPEs and trust protector corporations (TPCs) structured to work with directed trusts. SPEs permit a family to retain control over specific aspects of trust administration while relying on corporate fiduciaries to attend to all other administration tasks. Estate planners should know how to structure and use these stand alone entities to serve high net worth clients.

Listen as our experienced panel discusses the benefits and risks of PFTCs and other separate entities, ownership structures, and state law considerations in setting up PFTCs and other incorporated vehicles for holding family wealth.