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