A Private Trust Company (PTC) is a unique type of trust arrangement where the trustee is a company that is specifically set up to manage the assets of one or more family members (i.e. related by blood or marriage). Unlike traditional trust companies, which serve a broad range of clients, a Private Trust Company is typically created by wealthy families or individuals to give them more control over their family’s wealth and ensure that their trust is managed according to their specific wishes.

A Singapore PTC is not required to be registered with the Monetary Authority of Singapore (MAS). However, PTCs must engage a licensed trust company like Phillip Trustee to ensure compliance with Anti-Money Laundering (AML) regulations.

In a PTC, family members of the settlor or founder often serve on the board of directors, actively participating in key decision-making processes. For example, when seeking a business loan, having family members as both directors and trustees simplifies the process. Instead of relying on external parties, the same group can quickly reach a unified decision, leveraging their roles at both the business and trust levels. This structure is particularly beneficial for trusts managing family businesses, enabling faster and more cohesive decision-making that aligns with the family’s interests and goals.