Characteristics of Families Considering a Family Trust Company

Given the Ohio Family Trust Company Act became effective as recently as 2016, the concept remains new to many advisors and family members. Unlike a family office, a family trust company has fiduciary powers to act as Trustee of family trusts to assist a family with its wealth and/or family business shareholder transition to future generations. However, it can also offer family office services and initiate a governance structure for the family. Identifying families that may want to understand the solution a family trust company can provide as part of their family legacy is the first step. Below is a short list of some family characteristics when exploring a family trust company would be a worthwhile endeavor:

• Families having the goal of keeping the economic benefit of the family legacy for family members across generations
• Families doing multi-generational estate planning and taking advantage of the window of opportunity with the highest gift & estate tax exemption ever
• Families concerned about trustee succession & adapting to family changes over time
• Families wanting opportunities to keep family members ‘engaged’ outside of the family business
• Families interested in educational opportunities – particularly for the rising generation
• Families wanting to infuse their mission, vision & values through a flexible governance structure tailored for the family
• Families at a transitional point in passing family wealth and/or a family business asset to future generations
• Families looking to maintain shareholder control & related decisions over family business assets
• Families interested in keeping the family cohesive & working together across generations
• Families with a family-owned business, real estate holdings, or partnership interests held in trusts
• Families desiring privacy & confidentiality
• Families striving to concentrate oversight of the family assets
• Families currently having trusted advisors in place, but looking to establish structure & cohesiveness to bring them together
• Families seeking liability protection for individual decision makers
• Families looking to better manage trustee fees and administrative costs

^{Disclosures: The information provided is general in nature, is provided for informational purposes only, and should not be construed as financial or legal advice. The views expressed by the author are based upon the data available at the time the article was written. Any such views are subject to change at any time. Clearstead disclaims any liability for any direct or incidental loss incurred by applying any of the information in this article. All financial decisions must be evaluated as to whether it is consistent with your objectives and financial situation. You should consult with a financial, tax or legal professional before making any decisions.}