BVI Private Trust Companies

By Fanny Evans, Executive Director and General Manager of MMG Trust (BVI) Corp. 

Since the introduction of the Private Trust Company (PTC) in the BVI, this vehicle has become attractive to act as the Trustee, Protector or Administrator of a trust without the need to apply for an exemption or to apply for a trust license under the BVI Banks and Trust Companies Act.

In order to be qualified as a PTC, there are certain key requirements to comply with:

• The PTC must be a fully compliant BVI BC.
• The ending of the company must be “Private Trust Company” or “PTC”.
• The Memorandum of Association must state that it is PTC.
• Must have a Class I license holder as a Registered Agent, which Morgan & Morgan (MM) has.
• Must be engaged in “unremunerated trust business” to act as Trustee, Protector or Administrator of a trust, or for a group of trusts which are related (for example, “a family trust”).

“Unremunerated trust business” means that no payment is received in respect of services that would constitute trust business. Payment in respect of costs and expenses incurred by the PTC is not regarded as remuneration.

A single PTC may act as Trustee for several trusts as long as it qualifies as being part of a related group of trusts through persons who are connected by family relationships. Because one of the qualifying requirements of a PTC is that where multiple trusts are concerned, the trusts need to be related, it is therefore imperative that the Beneficiaries and the Settlor are identified within the Trust Deed in such a way as to make the determination of the relationships possible.

 

Is it possible to convert a IBC to a PTC?

Yes. IBC’s will be required to disapply the Transitional Provisions of the BC Act as a first step towards converting to a PTC.  Where the IBC acted as Trustee under the previous exemptions, the resolutions authorizing the conversion to BC must also contain relevant information stating that the Company was appointed Trustee pursuant to the details of the relevant Trust Deed.

Is it possible to convert a BC to a PTC?

Yes. A BVI Business Company may convert to a PTC by filing a PTC Memorandum of Association. The resolution authorizing the conversion must also state the details of any Trust for which the PTC is to act. Any subsequent Trusts must also be authorized by the PTC by resolution.

We remain at your disposal for any further information you may need regarding this useful vehicle for wealth planning.By Fanny Evans, Executive Director and General Manager of MMG Trust (BVI) Corp. 

Since the introduction of the Private Trust Company (PTC) in the BVI, this vehicle has become attractive to act as the Trustee, Protector or Administrator of a trust without the need to apply for an exemption or to apply for a trust license under the BVI Banks and Trust Companies Act.

In order to be qualified as a PTC, there are certain key requirements to comply with:

• The PTC must be a fully compliant BVI BC.
• The ending of the company must be “Private Trust Company” or “PTC”.
• The Memorandum of Association must state that it is PTC.
• Must have a Class I license holder as a Registered Agent, which Morgan & Morgan (MM) has.
• Must be engaged in “unremunerated trust business” to act as Trustee, Protector or Administrator of a trust, or for a group of trusts which are related (for example, “a family trust”).

“Unremunerated trust business” means that no payment is received in respect of services that would constitute trust business. Payment in respect of costs and expenses incurred by the PTC is not regarded as remuneration.

A single PTC may act as Trustee for several trusts as long as it qualifies as being part of a related group of trusts through persons who are connected by family relationships. Because one of the qualifying requirements of a PTC is that where multiple trusts are concerned, the trusts need to be related, it is therefore imperative that the Beneficiaries and the Settlor are identified within the Trust Deed in such a way as to make the determination of the relationships possible.

 

Is it possible to convert a IBC to a PTC?

Yes. IBC’s will be required to disapply the Transitional Provisions of the BC Act as a first step towards converting to a PTC.  Where the IBC acted as Trustee under the previous exemptions, the resolutions authorizing the conversion to BC must also contain relevant information stating that the Company was appointed Trustee pursuant to the details of the relevant Trust Deed.

Is it possible to convert a BC to a PTC?

Yes. A BVI Business Company may convert to a PTC by filing a PTC Memorandum of Association. The resolution authorizing the conversion must also state the details of any Trust for which the PTC is to act. Any subsequent Trusts must also be authorized by the PTC by resolution.

We remain at your disposal for any further information you may need regarding this useful vehicle for wealth planning.