Private Trust Foundations
Foundations are based on civil law and are self-governing legal entities. Like a Private Trust Company (PTC), a Private Trust Foundation (PTF) will structure family assets for protection and growth. It is established for the sole purpose of acting as a trustee of trusts for the benefit of a family.
A PTF can be used to replace the structure of a PTC and its overlying purpose trust.
Unlike a PTC, a PTF is an “orphan vehicle”: it does not have any members, shareholders or beneficiaries and is independent of the founder and its officials.
The structure is run by a council, and a guardian is required where there are no beneficiaries or if the beneficiaries have been disenfranchised. The guardian’s role is to enforce the purpose of the foundation.
A PTF does not require a fiduciary licence if it is not remunerated for its services as a trustee and it can only act for one family.
Why use a Private Trust Foundation?
- Simplicity. A PTF is run by a council, just as a company is run by its directors. A guardian is appointed and can appoint and remove councillors;
- Price. A PTF avoids the complexity required by the company and trust required for the PTC structure;
- Control. The guardian’s duty is to the founder to enforce the constitution and purpose of the foundation.
For more information about foundations contact us.