The liability aspect of private trust company formation: a common concern that many people have when they opt to set-up a private trust company is that, as a trustee, they may face personal liability should the company get into debt or be found to have acted unwisely. Luckily, there are several ways in which the interests of trustees can be safeguarded whilst also allowing the trust to operate without undue regulation.
Incorporation reduces liability: when you are ready to form a private trust company, why not opt to register it into a company in its own right? Coddan Formations Agency can provide the necessary expertise to facilitate this option, frequently enabling companies to become incorporated in as little as 24 hours. By the private trust company formation, it becomes a distinct legal entity, with its own assets, income and liabilities. This frees trustees from the concern that they will be liable should things go wrong, whilst still allowing them to influence trust activity.
Only liable if wrongdoing occurs: in the event that you decide not to set-up a private trust company but simply opt for a private trust, there is a risk of trustee liability, although this is normally only realised if the trust is found to have acted fraudulently. All trustees cannot be held liable for the misguided unilateral action of a single trustee and will also not be liable should the trust's problems be down to genuine error. This is a complex area, where expert input from Coddan Formations Agency can be really helpful. Not only can we advise on what might be the most suitable trust format for your endeavours, we can also deal with all the paperwork needed to get it up and running promptly.