Difference between a PTC & Swiss Trust

A Swiss Private Trust Company (PTC) is a type of legal entity that is specifically designed to act as a trustee for one or more trusts. It is often established by a HNWI or group of individuals to manage and administer their own trust structures. On the other hand, a Swiss trust is a legal arrangement where the settlor transfers assets to a trustee who manages and distributes the assets according to the terms of the trust deed for the benefit of the beneficiaries.

Here are some key differences between a Swiss PTC and Swiss trusts:

Purpose:

The main purpose of a Swiss PTC is to act as a trustee for one or more trusts, while a Swiss trust is established to protect and manage assets for the benefit of the beneficiaries.

Management:

A Swiss PTC is managed by a board of directors, while a Swiss trust is managed by a trustee who is responsible for managing the assets of the trust.

Control:

A Swiss PTC provides the settlor with greater control over the management and administration of the trust assets, while a Swiss trust places control in the hands of the trustee.

Regulation:

Swiss PTCs are subject to regulation by the Swiss Financial Market Supervisory Authority (FINMA), while Swiss trusts are not directly regulated. However, trustees are subject to various legal and regulatory requirements.

Taxation:

Swiss PTCs and Swiss trusts are both subject to Swiss taxation laws. However, a Swiss PTC may be subject to a higher tax rate than a Swiss trust.

Confidentiality:

Swiss PTCs and Swiss trusts both benefit from strict confidentiality laws in Switzerland, which can provide a high level of privacy for the settlor and beneficiaries.

In summary, while both Swiss PTCs and Swiss trusts are used for asset protection and estate planning, they differ in terms of their purpose, management, control, regulation, taxation, and confidentiality laws.

It's important to consult with a legal professional who specialises in Swiss trust and fiduciary law to determine which type of structure is best suited to your individual needs and circumstances.

Get in touch with us to understand how a Swiss Trust can help you protect your wealth.