Private Trust Company
A private trust company (PTC) is a special form of a company in some so-called offshore legal systems but also in the Principality of Liechtenstein , in which the PTC acts as the trustee (legal owner) of one or more trusts .
Sometimes it is required (e.g. in the British Virgin Islands ) that the trusts managed by PTC have a close relationship with one another, e.g. B. that the beneficiaries of the respective trusts are directly related to each other etc.
organization
function
The purpose and function of the PTC as a legal entity is to ensure a certain stability and influence, especially for the settlor (trust founder), after the trust has become independent. The trustee (in the present case the PTC) is formally the owner of the trust assets and is already bound by the trust deed, etc., but is further restricted by the administrative level of the PTC in this scope of action. At the same time, the trustee is relieved of his extensive responsibility.
The administrative level of PTC and its members are mostly determined by the shareholders of PTC.
Another advantage of the PTC is that it can be permanently appointed as a trustee and a change in the people at the administrative level or their organization has no influence on the function as trustee. If the trustee has to be exchanged in another trust, this may lead to a protracted recall and / or reappointment procedure or even to the loss of the trust. This is avoided by the PTC as trustee.
In addition to the PTC, there can also be a protector or advisory board, etc., although this will rarely make sense, since the administrative level of the PTC can be varied and designed according to the relevant interests and priorities.
legal form
The PTC is usually a corporation (eg. As joint stock company ), but can also in Liechtenstein Anstalt his or foundation .
The British Virgin Islands and Cayman Islands require, in the interests of traffic and creditors' protection, that a company that acts as a PTC has the addition " PTC " or Private Trust Company in its company name . This is not always necessary in other countries.
Principality of Liechtenstein
A PTC has been possible in the legal system of the Principality of Liechtenstein for decades. A special identification as PTC is not required.
Economic activity
Since PTCs are often only allowed to include a very limited group of people (e.g. a family), PTCs do not offer the services publicly and do not advertise them.
PTC are usually not allowed to make a profit and only perform the services at cost. These services usually consist of the fees for the people who work on the administrative level and the direct expenses for the company itself.
Purpose trust
The sole purpose of the "purpose trust" ( Engl .: Purpose Trust) is in most cases the holding of shares in one or more PTCs. In a purpose trust, there are no beneficiaries; the focus is merely on the purpose of holding the shares in a PTC.
The trustee of the special purpose trust is usually a professional trustee.
In turn, to control the purpose trust, an executor can be used.
Executor
The enforcer is usually a natural person who is supposed to ensure that the settlor's requirements are complied with.
Demarcation
The PTC is to be distinguished from the protector of a trust. While the protector usually has to act in favor of all beneficiaries and the settlor or trust, the PTC often acts in the (main) interest of the settlor or his family.
Criticism of trusts
The legal institution of the trust is in some cases generally assumed
- to be a means of obscuring actual ownership,
- to be used as a tool for tax evasion ,
- that this promotes money laundering , and also
- Violation of compulsory portion rights are facilitated,
- Etc.
In this context, the structure of the PTC is basically suitable for further disguising the ownership and influence relationships. The limit of the influence of the PTC lies where the effectiveness of the trust itself is called into question, although this limit can be very fluid.
literature
- Veit Frommelt, Angelo Trebo: Private Trust Companies in Liechtenstein , Liechtenstein-journal , 4/2014, pp. 102–110.
- Henning Haarhau: Legal tax havens: Attractive capital investments abroad , Freiburg i.Br. 2008, Haufe Mediengruppe, 1st edition, ISBN 9783448090802 .
- Christoph Torwegge: Loyalty and due diligence in English and German corporate law: GmbH managing director versus director of the Private Limited Company , Wiesbaden 2009; Gabler Verlag, ISBN 978-3-8349-1262-6 .
Individual evidence
- ↑ For example: Bahamas , Bermuda , British Virgin Islands , Cayman Islands , Guernsey , Jersey etc.
- ↑ The PTC trustee can be both of a trust that was established under its own legal system and of trusts that exist in other legal systems.
- ↑ Often professional trustees, lawyers, beneficiaries of the trust (s), the settlor themselves, etc.
- ↑ This can e.g. This can also be important, for example, if the trust conducts high-risk or speculative transactions and a natural person as a trustee should not be exposed to high and strict liability.
- ↑ See Veit Frommelt, Angelo Trebo: Private Trust Companies in Liechtenstein , Liechtenstein-journal, 4/2014, p. 106.
- ↑ Art 897 PGR . See also Government Report and Application (BuA) 125/2012 and 42/2013.
- ↑ See, for example, from different perspectives: NZZ, " Covering your tracks with offshore trusts ", online edition of March 8, 2009, Schweizerischer Tagesanzeiger, " Trusts as compensation for cracked banking secrecy? “Online edition of March 12, 2009.
