Private Trust Companies (PTC) can either be multifamily (public) or single family (private) and regulated or unregulated. The regulated trust companies generally receive a charter and the unregulated trust companies generally receive a license.
SDTC Services of Wyoming (SDTCSW) can provide both unregulated and regulated PFTC services in Wyoming, while SDTC Services (SDTCS) provides regulated trust services in South Dakota.
The question of whether to establish a regulated or an unregulated trust company is an important one. The formalities associated with the regulated PFTC such as capital requirement, state audits, policy and procedures manual and compliance all help to ensure that the PFTC is a properly functioning entity and trustee. Estate tax issues may also be lessened with a regulated versus an unregulated PFTC. Properly regulated PFTCs are also generally SEC exempt, which is important to many families. Please note that PFTCs did not become popular until around 2002, so they are a relatively new concept, but have grown quite rapidly.
SDTC brings its regulated PFTC industry leadership, experience, and services to its unregulated PFTC offering in Wyoming providing substantial formalities and experience for the operation of an unregulated WY PFTC, without sacrificing the simplicity and privacy of an unregulated PFTC.
The chart below further illustrates the major distinctions between regulated and unregulated PFTC jurisdictions.
|Regulated PFTC||Unregulated PFTC|
|Family Net Worth||Generally exceeds $100 million (usually over $250 million or much more)||Generally exceeds $25 million (sometimes lower)|
|Type of Entity||Typically LLC||Typically LLC|
|Owner||Family or family trust||Family or family trust|
|Liability Protection Insurance for Family Fiduciaries (D&O, E&O)||Yes||Yes|
|Promotion of Family Values||Yes||Yes|
|Ability to Work With Family Office and Family Advisors||Yes||Yes|
|Ability to Administer Public/Private Stock Without Diversification||Yes||Yes (usually)|
|Ability to Accommodate Broad and Sophisticated Asset Allocation||Yes||Yes (usually)|