A Private Trust Company (PTC) is a corporate entity formed specifically to act as trustee for a single family's trusts, rather than using an institutional trust company.
Why use a PTC?
Institutional trustees are highly regulated, risk-averse, and often slow to execute complex transactions or hold unconventional assets (like crypto or operating businesses). A PTC solves this by allowing family members and trusted advisors to sit on the board of the trustee company itself.
Structuring a PTC in Cayman
Cayman is a premier jurisdiction for PTCs due to its flexible regulatory regime. A PTC that provides connected trust business to a defined group of individuals does not need a full trust license, provided it registers with CIMA as a Registered Controlled Subsidiary or an Exempted Trust Company.
| Ownership Layer | Typical Structure |
|---|---|
| The Trusts | Holds family assets, administered by PTC. |
| The PTC (Trustee) | Exempted Company acting as trustee. |
| PTC Ownership | Often held by a STAR Trust to "orphan" it from the family estate. |
Board Composition
The board of a PTC typically consists of a mix of family members (for intent), professional advisors (for technical expertise), and local directors (for substance and compliance).
Evaluate PTC Viability