Ch. 15: Foreign Trusts Control

• Trustee Arrangements

Synopsis: Discusses basic arrangements used to provide trustees for FAPTs and yet still give the settlor some indirect control.

• Institutional Trustees

Synopsis: Discusses the advantages and disadvantages of large banks and financial services firms as the trustees of FAPTs.

Definition: Institutional Trustee – A bank, financial services firm, or licensed trust company that acts as a true third-party trustee of trusts.

• Trust Protector Arrangements

Synopsis: Describes the function of the Trust Protector.

Definition: Trust Protector – A person or entity who has certain powers under the trust document, usually to discharge (but not appoint) trustees, and to veto (but not make) certain key decisions of the trustees.

• Private Trust Company

  Synopsis: Discusses the use of Private Trust Company arrangements to act as the trustee of FAPTs.

  Definition: Private Trust Company (PTC) – A trust company directly or indirectly owned or controlled by the settlor of a trust. The concept is to give the appearance to third parties that the trust has an independent trustee.