Private Trust Companies ("PTCs") can act as a trustee of trusts without the need to obtain a BVI trust license as long as certain conditions are satisfied.
BVI PTCs have become very popular, especially among wealthy families and those individuals from civil law jurisdictions who are not comfortable transferring their wealth to an independent third party trustee.
In May 2013, the BVI trust legislation was amended to allow PTCs to be trustees of VISTA trusts and Purpose Trusts.
A PTC must:
• be a BVI company limited by shares or guarantee;
• must state in its memorandum of association that it is a PTC; and
• must have PTC in the company name
PTCs are prohibited from conducting any business which is not "trust business" (defined below) and they may not offer services to the general public.
The PTC must only conduct "trust business" as defined by the legislation as "the business of acting as a professional trustee, protector or administrator of a trust or settlement or managing or administering any trust or settlement". In particular the trust business must be unremunerated or related trust business.
For more information on the use of Private Trust Companies, please contact us.