Aug 1, 2008 12:00 PM

By Carol A. Harrington & Ryan Harding, partners in the Chicago office of McDermott, Will & Emery LLP

On July 11, 2008, the Internal Revenue Service issued proposed guidance (Notice 2008-63) regarding the estate, gift, generation-skipping and income tax issues involved with trust companies that are family-owned or controlled, aka “private trust companies” (PTCs).

This guidance, pending since 2005, has been much anticipated — as wealthy families are increasingly interested in forming their own PTCs (that is to say, entities that are owned entirely by members of the same family and serve as trustee of trusts held for the benefit of that family.) For many wealthy families, a PTC is a viable alternative to a commercial corporate trustee or individual trustees. A family may form a PTC as part of a long-term fiduciary plan and use it to introduce flexibility into existing trusts, particularly those requiring a corporate trustee. A PTC allows a wealthy family in a private setting to institutionalize trustee selection and succession, as well as control investments and costs.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

Click here to read the issue.

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

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