Private trust companies: recent IRS guidance removes many concerns and clears the path for clients' use

Abstract

The US recently issued proposed guidance that, when finalized, will clarify the tax treatment of having private trust companies (“PTC”) serve as trustees of family trusts in the US (IRS Notice 2008–63 (July 11, 2008)). The proposed guidance describes the US tax treatment of these structures and provides safe harbours that practitioners should incorporate to minimize unintended US tax consequences. This article considers the key requirements of the proposed guidance.