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When it comes to trust mapping or developing an estate distribution summary for a family, it is critical to align the family’s expectations with the level of overview they want to see. A list of best practices, an example of a simplified estate distribution summary, and a detailed trust map are provided as guidance. The goal is to have a one-page picture that gives as much information as is needed for a review of what is currently in place, or for a meeting to discuss what future planning makes sense to consider.

A Dynasty Trust is often referred to as a family bank since it serves as a primary resource for the funding of the needs of a family's beneficiaries in successive generations. Given the unsteady economic times and tax uncertainty, there is no better time than now for wealthy families to establish a Dynasty Trust to achieve optimum results, including tax advantages, flexibility, and control.

With the passage of the Tax Cuts and Jobs Act at the end of 2017, more family businesses are examining their corporate structure and considering the tax implications. Specifically, companies that are currently structured as “pass-through” entities (e.g., an S corporation, partnership, or LLC taxed as an S corporation or partnership) are examining the new-found benefits of converting to a C-Corp.

Structured as an irrevocable, complex trust for the benefit of the transferor's future generations, a Dynasty Trust is an option for high-net-worth individuals to maximize the amount that can be transferred during their lifetime or upon death to support multiple generations, transfer tax free. Using an illustrated example, learn more about the advantages and disadvantages of a Dynasty Trust.

Originating in English common law, trusts have been used for centuries to manage holdings of the wealthy. Even though trusts are quite common, many people may find them hard to understand. Having an introduction to the trust basics is a good place to begin and learn how trusts are used in wealth management plans to help provide financial support for family members, protect family assets from a myriad of risks, and help mitigate taxes.

The ownership and governance structure of a private family trust company (“PFTC”) is highly customizable. This is important because all families are different, with different goals, family dynamics, asset composition, family sizes, and family affiliates. With that in mind, there are some key considerations in structuring the entity ownership and governance of a PFTC, both tax-related and not tax-related.

The Board of Directors plays a pivotal role in the effective governance of any organization, including the private family trust company. Board members fulfill their roles and responsibilities, in part, by holding regular meetings that utilize a comprehensive agenda. One vital tool for an effective Board meeting is the meeting agenda. Here, ten suggestions are provided for developing and utilizing meeting agendas that will lead to more productive, efficient, and educational board meetings.

Every family has its own reasons for establishing a private family trust company (PFTC) which can be structured to suit the family’s needs and desired goals. When deciding whether to establish a PFTC, there are several important issues to consider. Taking an in-depth look at these considerations—including capital requirements, regulatory burdens and costs, family participation, long-term governance and succession, and trustee latitude—can help a family decide if it should create a PFTC and make it part of their long-term wealth planning.

Private trust companies (the PTCs) are not a new phenomenon. Rather, they have increased dramatically in number over the years, with hundreds of major, family-controlled trust institutions now operating in the United States. This article addresses why the number of PTCs has been growing; describes its typical organizational structure; and discusses certain legal and practical considerations that a family should address when exploring a PTC.