The issue of “loss of control” increasingly surfaces with planning for clients with more complex needs or objectives. Situations arise where it is clear that one or more trust arrangements are appropriate estate or tax planning solutions but clients voice concern over passing total control to trustees who are not well known to the family.

Settlors who reside in tax benign and economically stable jurisdictions potentially have options. Perhaps the settlor, or the settlor’s representative, can be a protector or even a co-trustee subject to assessment of the inherent tax and fiduciary risks.

Another option for these clients, and others who live in less tax friendly locations, is the establishment of a company (“TrustCo”) which itself will act as trustee of one or more family trusts. With appropriate planning the client (or the client’s representative) can often have an effective voice on the board of the TrustCo without compromising the tax status of the TrustCo or the place of effective mind and management. The result is assurance to the client of continued involvement, the ability to provide input as decisions are taken and the receipt of timely and complete information.

Guernsey provides an excellent location for the formation and management of Private Trust Companies. As well as offering an advanced commercial and legal infrastructure, it is a jurisdiction known for its highly effective but flexible regulation. Trust and Corporate Service Providers are licensed and regulated by the Guernsey Financial Services Commission (“GFSC”) under the terms of The Regulation of Fiduciaries, Administration Businesses and Company Directors, Etc. (Bailiwick of Guernsey) Law, 2000. Private Trust Companies, however, may apply to the GFSC for exemption from both licensing and regulation provided (amongst other matters) that they act as trustee on behalf of one family group, receive no income, truly do not act by way of business and engage the services of a licensed trust company to ensure prudential management and administration.

Newhaven Trust provides comprehensive support services to Private Trust Companies as part of its growing range of “family office” facilities. Working with clients and their professional advisors, Newhaven Trust is able to recommend bespoke solutions and support these with comprehensive administration delivered by longstanding industry professionals.

In appropriate circumstances Newhaven Trust can propose and introduce suitably qualified individuals to act as Directors of Private Trust Companies and where Newhaven Trust does not perform any administrative function.

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