PTC vs Corporate Trustee in Singapore: How to Choose
A private trust company (PTC) is a company your family sets up to act as trustee of your own trusts. A corporate trustee is a licensed trust company that serves many clients as trustee. In Singapore, the PTC gives your family more say in trustee decisions through its own board. The corporate trustee gives you an established professional with its own regulated infrastructure. Which one fits depends on the size of the wealth, how involved the family wants to be, and how long the structure has to last.
This guide sets out the legal difference, the licensing position, the trade-offs and a simple way to decide.
TL;DR
A PTC is a company whose sole purpose is to act as trustee for a specific family’s trusts. A corporate trustee is a licensed trust company that acts for the public.
A qualifying PTC is exempt from holding a trust business licence, but it must still meet connected-person and no-public-business conditions, and it must engage a licensed trust company for required AML/CFT trust administration.
A PTC suits families that want a board with family voices and have enough assets and complexity to justify running a company. A corporate trustee suits families that want a ready-made professional trustee.
Many families combine the two: a PTC for decisions, with licensed professionals for administration and compliance.
Decide on control, continuity, confidentiality, governance capacity and cost. Do not decide on the label.
Table of Contents
What each structure actually is
The private trust company
Under Singapore’s Trust Companies (Exemption) Regulations, a private trust company is a corporation whose purpose is solely to provide trust business services for a specific trust or specific trusts. Each settlor must be a connected person of the other settlors, each beneficiary must be connected to the settlor or be a charity, and the company must not solicit trust business from, or serve, the public (Trust Companies (Exemption) Regulations).
In practice, the PTC is a company that holds the trust assets as legal owner. Its directors make the trustee decisions. Those directors can include family members, trusted advisers and professionals. The family’s trust deed and the company’s constitution decide how the board works.
The corporate trustee
A corporate trustee is a company licensed under the Trust Companies Act 2005 to carry on trust business for clients. The Monetary Authority of Singapore (MAS) describes regulated trust business as creating an express trust, acting as trustee, arranging for another person to act as trustee, or providing trust administration services (MAS FAQs on the Trust Companies Act).
To hold a licence, a trust company must meet MAS requirements. These include minimum paid-up capital or qualifying assets of S$250,000, at least two resident managers (one with five years’ relevant experience), an application fee of S$1,000 and an annual licence fee of S$4,000 (MAS trust business licence page). For you as a settlor, that means the corporate trustee already has the people, capital and processes in place on day one.
Side-by-side comparison
Criterion | Private trust company | Independent corporate trustee |
Who decides | The PTC board, which can include family members and advisers | The trustee’s own committees and officers, within the trust deed |
Licence | Exempt if it meets the PTC conditions | Holds a MAS trust business licence |
Who it serves | Only the family’s connected trusts | Many unrelated clients |
Continuity | Depends on the family keeping a capable board in place | Built into the institution |
Administration | Needs a licensed trust company for required AML/CFT administration | Handled in-house |
Set-up effort | Company formation plus trust deed plus governance documents | Trust deed plus onboarding |
Ongoing effort | Board meetings, directors, accounts, filings | Reporting and fees under the engagement |
Best fit | Larger, multi-generational, operating-business families | Families who want a professional to hold and administer assets |
The licensing question
The exemption is the heart of the PTC. MAS’s FAQs explain that a PTC meeting the connected-trust and no-public-business conditions is exempt from a trust business licence. They also state that it must engage a licensed trust company for the required AML/CFT trust administration (MAS FAQs).
Two practical points follow.
A PTC is not a way around regulation. It is a regulated-by-design structure with a licensed professional alongside it. We explain what MAS expects in PTC requirements in Singapore.
The conditions must stay true. If a new beneficiary falls outside the connected-person definition, or the company starts offering services to outsiders, the exemption is at risk. Settle the family tree and the beneficiary class before you sign.
Control: where the two differ most
With a corporate trustee, the trustee holds the decision-making power. You can guide it through a letter of wishes, and the trust deed can reserve specific roles such as a protector. The professional trustee still makes the final calls within its duties.
With a PTC, the board is the trustee. The family can sit on it. That is the main reason families choose it: investment decisions, distributions and the handling of a family business can be discussed by people who know the family. Our article on PTC benefits for HNW families covers this in more depth.
Control comes with responsibility. Directors of a PTC are trustees in substance, so they carry trustee duties. Under section 3A of the Trustees Act, as summarised by the Singapore Law Gazette, a trustee must exercise the care and skill that is reasonable in the circumstances, taking into account any special knowledge or experience. A professional trustee is held to the knowledge reasonably expected of that business or profession (Singapore Law Gazette). Family directors should be ready for that standard, and a good board paper trail helps. See PTC directors in Singapore for a checklist.
Confidentiality
Both structures keep trust affairs private, but they do it differently. A corporate trustee keeps client information within one institution that already has confidentiality procedures. A PTC keeps the information within the family’s own circle and its chosen advisers, so the family decides who sees what.
Record-keeping rules also apply to Singapore trusts. We summarize them in trust confidentiality and the 5 year record rule. Whichever structure you pick, plan for the records to be kept properly and to be available to those entitled to see them.
Continuity and succession
A trust is meant to outlast its founder. The question is what happens when the people running it change.
Corporate trustee: the institution carries on. Individual officers come and go, but the trustee does not die or lose capacity.
PTC: the company continues, but the board is only as strong as its members. The family needs a plan for replacing directors, a retirement age or term, and a way to bring in the next generation.
A PTC that is well designed answers these questions in its constitution and the trust deed. A PTC left without a succession plan for its board creates the problem a trust is supposed to solve. Our piece on PTC governance gives a practical framework, and PTC compliance lists the trustee terms families should set.
If a trustee needs replacing, the trust deed and the law set the route. We cover the options in how to remove a trustee in Singapore.
Cost and timeline
A corporate trustee charges fees under an engagement, usually for acceptance, annual administration and extra work. A PTC has set-up costs for incorporating the company and drafting the documents, then running costs for directors, accounting, filings and the licensed trust company that provides required administration.
Published figures vary a lot with the assets, the number of trusts and the services chosen, so we do not quote a single market number. Our breakdown in PTC costs in Singapore shows what drives the setup and annual fees. As a rule of thumb, the more assets and complexity in the family, the easier it is to justify a PTC. For simpler needs, a corporate trustee usually avoids running a company at all.
Who each structure suits
A PTC tends to suit
Families with substantial, multi-generational wealth that want a board to reflect family views.
Business owners whose trust holds shares in an operating company and who want decisions made by people who understand the business.
Families who already have the habit of meetings, minutes and governance, or are ready to build it.
Families that want to bring the next generation into stewardship gradually.
A corporate trustee tends to suit
Families who want a professional to hold assets and administer the trust without forming and running a company.
Smaller or simpler estates where board machinery would be more than the family needs.
Settlors who want an institution to carry on regardless of family changes.
A hybrid is common
The regulatory model points toward combination. Because a qualifying PTC must engage a licensed trust company for required AML/CFT administration, the PTC can handle decisions while a licensed professional handles administration and compliance. You get family voice and institutional discipline together.
Trustee, executor or both?
People often ask whether they need both an executor and a trustee. They are different roles. An executor collects the estate, pays debts and distributes under the will. A trustee holds and manages assets for beneficiaries over time. With a testamentary trust, which is created by a will, the will together with the Trustees Act 1967 governs the trust, and trustees can manage, invest and distribute assets subject to the trust instrument and statutory defaults (Singapore Law Gazette).
Families often appoint a corporate executor to wind up the estate and then a trustee to carry on after that. Our trustee investment powers article explains the powers and the AML duties trustees carry.
A practical decision path
List what goes into the trust. Cash and listed securities, property, a family company, insurance, CPF nominations. Complex or operating assets lean toward a PTC.
Map the family. Who the settlor and beneficiaries are, and whether all of them are connected persons. If a beneficiary could fall outside that definition, the PTC exemption needs careful review.
Be honest about governance capacity. Who would sit on the board, how often they would meet, and who replaces them.
Choose the administration model. For a PTC, decide which licensed trust company will provide the required administration.
Decide how much say you want. Guidance through a letter of wishes, or direct participation through a board.
Document it. Trust deed, PTC constitution, directors’ appointments, letter of wishes, and a will that works with the trust.
Documents to gather
For either route, you will usually need identification for settlor, directors and beneficiaries, asset schedules, details of any family company, existing wills and insurance nominations, and a clear statement of the family’s wishes. For a PTC, add the company incorporation details and director information. The exact list depends on the trustee, so confirm with your adviser at the start.
Perspective
We meet many families who arrive asking for a PTC because they have heard it gives control. Sometimes it does exactly what they need. Sometimes the better conversation is about the governance they are ready to run. Our view is that the structure should follow the family, not the other way round. A PTC works best when the board has a purpose, a calendar and a succession plan, and when the family has chosen the licensed professionals who support it. We design the Living Trust and the Private Trust Company with those questions answered up front, so the control a family wants is backed by structure from day one. Estate planning rarely stops at the trustee choice. The will, the insurance and CPF nominations, the liquidity of the estate and the protection of a family business all have to line up with it. That is why we begin with the whole picture and give continual support afterwards. Joseph
How we can help
We advise affluent and high-net-worth families and business owners in Singapore on trust consultations, living trusts, private trust company setup and corporate executorships. If you are weighing a PTC against a corporate trustee, a consultation can map your assets, your family and your governance capacity before you commit to either.
Our published services include the Comprehensive Will (testamentary trust) at S$1,250 to S$1,900, Portfolio Structuring & Estate Optimisation from S$1,500, the Business Value Protection Trust (buy-sell agreement) from S$8,000, and the Schedule of Assets, Estate Liquidity Analysis & Asset Nomination from S$500. We also offer the Standby Trust and the Insurance & CPF Trust via nomination. See all of them on our estate planning services page.
If you are already clear on your direction, you can start from our home page and tell us about your family and your assets.
FAQ
What qualifies as a corporate trustee in Singapore?
A corporate trustee is a company licensed under the Trust Companies Act 2005 to carry on trust business. MAS sets minimum capital and resident manager requirements and charges licence fees (MAS). A PTC is a different category, exempt from licensing if it meets the statutory conditions.
Can a family member be a trustee?
Yes, an individual can act as trustee, and in a PTC family members can sit on the board as directors. They then carry trustee duties, including the duty to exercise reasonable care and skill (Singapore Law Gazette). Families usually pair family directors with professional support.
Does a PTC need a licence from MAS?
Not if it qualifies for the exemption. It must act only for connected persons’ trusts and must not offer trust services to the public (Trust Companies (Exemption) Regulations). It must still engage a licensed trust company for required AML/CFT administration.
Do you need both an executor and a trustee?
Not always, but many estates use both. The executor administers the estate under the will, and the trustee holds and manages assets for beneficiaries afterwards, for example under a testamentary trust. The roles can be held by the same corporate provider or by different parties.
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