The organizational structure of a Private Family Trust Company, or PFTC, has several roles that need to be filled. As a result, there is substantial risk that, absent preventative measures, the actions of the PFTC as fiduciary could be voidable by a trust beneficiary based on a conflict of interest.
Rob Galloway, a national team leader of BakerHostetler’s Private Wealth Group, and Cindy Steeb, president of an unregulated Wyoming corporate PFTC, provided a detailed look into the issue of conflicts of interest in the world of PFTCs, and described ways to minimize the risk. Using specific examples and diagrams, Rob discussed the legal underpinnings from both a fiduciary and corporate perspective, and Cindy expanded on the many ways that conflicts of interest are present in the day-to-day operations of a PFTC.
Date Published: Wednesday, November 4, 2015