Structuring & Fiduciary Services – Case Study 1

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A Private Banking intermediary approached us for assistance with the offshore structuring needs for a non-UK resident Ultra High Net Worth client he acted for.  The client had recently had a significant liquidity event and wanted to contribute those funds to a suitable structure, which would be earmarked for the future benefit of his family.

We met with the client alongside his private banker, and together we assessed his goals and requirements for the structure.  Of paramount importance to the client was securing the funds in a compliant structure whilst retaining as much control as possible.  The client recounted an unfavourable experience encountered elsewhere in the family upon the death of the family patriarch.  In that case, the trustees of his family trust presented endless delays and problems in winding up the trust and distributing the assets, which eventually required protracted litigation to resolve.

To overcome that problem, a Private Trust Company (“PTC”) structure was suggested, with the client appointing to the board of the PTC his private banker and lawyer, who would sit alongside the professional trustees and ensure the client’s interests were safeguarded at all times.

The structure provided creditor protection and secured the funds for the benefit his family in the future, with the client setting out in detail, via the trust’s constitutional documents, the precise terms for distributing funds to his young children in the future, allowing him to continue to exercise an element of control in the event of his death.

We coordinated the entire process for the client, from drafting an initial proposal through to securing the tax advice and acquiring quotes from offshore fiduciary firms.  We acted as the main point of contact for the client and the relevant service providers, driving the implementation process and ensuring a timely and cost-efficient delivery of the project.