To allow the family to act as its own…

To allow the family to act as its own trustee for a family trust, a complex, highly regulated bank-like entity called a private trust company can be created. For example, a family that owned and controlled a large public company began to diversify by selling stock in the business. The family needed a home for these new investments, and it wanted to consolidate the investments that were held in various institutions and trusts. The family could justify the expense of setting up a private trust company because it wanted to be actively involved in investment decisions using the wisdom of its talented fourth generation.

— from The Flight Plan (Purpose/Wisdom/Risk)

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