The Crown Jewel: The Private Trust Company (PTC)
The Crown Jewel: The Private Trust Company (PTC)
Why pay 1% AUM fees to a bank that refuses to buy Bitcoin or hold your family business? How to charter your own regulated Trust Company to act as the permanent, liability-shielded trustee for your dynasty.
Executive Summary
- The Institutional Friction: Commercial Trustees (Big Banks) are terrified of liability. They often refuse to hold “Non-Traditional Assets” like private businesses, crypto, or art. They want to sell your family business and buy their own mutual funds to earn double fees.
- The Solution (PTC): You form a **Private Trust Company (PTC)**, typically in a friendly jurisdiction like South Dakota, Nevada, or Wyoming. This is a real corporation whose *sole purpose* is to serve as the Trustee for your family’s trusts.
- The Benefits:
1. Liability Shield: Individual family members don’t act as Trustees (risky); the Corporation does.
2. Permanence: People die; corporations don’t. The PTC ensures governance continuity for 100+ years.
3. Cost Cap: Instead of paying % of AUM (which grows endlessly), you pay fixed operational costs to run the PTC.
The Committee Structure (Bifurcation)
Divide and Conquer: A PTC allows you to split power precisely.
👉 Investment Committee: Run by the Family and Alpha Seekers. They decide to buy crypto or invest in a startup. (Risk On).
👉 Distribution Committee: Run by Independent Advisors/CPAs. They decide when to give money to beneficiaries. (Tax Compliance).
This separation prevents the IRS from arguing that the family has “too much control” over tax decisions.
Mechanic: Renting vs. Owning the Trustee
Simulation: Managing a $100M Family Estate
| Feature | Individual Trustee (Uncle Bob) | Corporate Trustee (Bank) | Private Trust Company (PTC) |
|---|---|---|---|
| Liability | Personal (High Risk) | Corporate | Corporate + D&O Ins. |
| Succession | Dies / Quits | Employee Turnover | Perpetual Existence |
| Investment Flex | High | Low (Rigid Policy) | Max (Your Policy) |
“A Private Trust Company is not just a legal entity; it is the ‘Senate’ of your family nation. It centralizes decision-making, professionalizes governance, and ensures that your family’s values, not a bank’s policy manual, dictate your future.”