In response to a recent article about private trust companies (PTCs) on the Wall Street Journal, Kim Kamin comments that a PTC is indeed a good choice for ultra-high-net-worth families. However, she points out that the advantages of PTCs are generally limited to those who already have a fully functional family office and at least $500 million in total assets. This is essential for families to understand ahead of time, as the costs of creating a family office and/or a PTC are often greater than is initially believed. Kamin suggests that other alternatives such as a trust distribution committee, individual fiduciaries or a directed trust approach may in fact be more appropriate.

See “Private Trust Companies – Don’t Believe all the Hype”, WealthManagement.com, Dec 22, 2014

Posted by Elizabeth Cheung, Associate Editor, Wealth Strategies Journal.