Many wealthy families use trusts but do not want to leave administration entirely to an outside trustee. A private trust company combines both: the trusts remain, but a company close to the family acts as trustee.
Structure
The PTC is usually a company whose shares are held by a purpose vehicle, a foundation or its own trust, so it does not sit directly in a family member’s estate. Its board consists of family members, independent professionals and often a representative of the family office. Day-to-day administration is frequently handled by a family office or an appointed provider.
Regulatory classification
Trustees in Switzerland generally need a licence under the FinIA. Exemptions exist for structures managing exclusively the assets of persons with family ties; whether a specific PTC qualifies depends on its design and belongs in a legal assessment. Abroad, depending on the seat, own rules apply, such as registration duties or PTC exemptions.
Day-to-day duties
A PTC must also document trust deeds, resolutions, distributions and beneficiaries properly. Banks require Form T for the trusts’ accounts, and for automatic exchange of information it must be clarified whether the PTC or the trust counts as a reporting financial institution. A clear family charter also sets out who sits on the board and how conflicts are resolved.