Families with substantial wealth looking for fiduciary services may wish to consider forming a Private Single Family Trust Company as an alternate option. A Private Single Family Trust Company exists to provide fiduciary services to the family’s trust(s) and is a state-charted entity that is created by the family. Many families find that choosing a trustee can be extremely difficult. While private, trusted individuals such as friends and family may be sufficient for a certain period of time, these individuals can unexpectedly resign, succumb to health issues as they age, and will ultimately pass away. At the other end of the spectrum there are professional financial institutions who are more than happy to provide trustee services. While this option can relieve the unexpectedness of a trustee resigning or passing away, these institutions frequently lack a personal, long term relationship with the family.
An alternate option for a family looking to maximize the trustee relationship can be found in the Private Single Family Trust Company. This structure can be created in either Wyoming or Nevada and can allow a family to be involved as a team with their trusted advisors and other third party professionals they wish to be included. If the trust is not a Wyoming nor Nevada trust, the trust can likely be decanted to one established in the state of choice.
The SFPT allows the family to maintain control over the most important aspects of the trust, including making decisions regarding investments of trust assets. Further, the Private Single Family Trust Company can encourage younger generations to become involved in trust matters and gain financial maturity as they learn the responsibilities and nature of the family wealth.
While there are many advantages to using the Private Single Family Trust Company, in general its use should be reserved for families who wish to maintain a sense of family involvement and cohesion well into the future. Feel free to reach out to Moses Estate Planning if you would like more information regarding the Single Family Private Trust Company.