19 January 2026
Article
Can you have your cake and eat it? Ultra-high-net-worth (UHNW) families seek robust, flexible structures to protect, manage, and preserve their wealth. A fear of loss of control over assets is one of the most delicate issues facing UHNW families when considering the use of trust arrangements to safeguard wealth for future generations. Offshore trusts remain a cornerstone of global wealth planning, yet the question of control, particularly for the family, demands careful consideration and precise structuring. This article examines the key mechanisms available for retaining influence over offshore trusts, and the benefits and risks of each.
Effective trust structures must strike a balance between the family’s desire for involvement and the need for robust governance, regulatory compliance, and tax efficiency. Guernsey, as a leading international finance centre, offers a mature legal framework and a range of structuring options that can be tailored to each client’s needs. The jurisdiction’s independence, stability, and modern trust law make it an attractive choice for families seeking both security and flexibility.
Private Trust Company
A popular mechanism for high-value structures is the Private Trust Company (PTC). A PTC acts as the trustee of a family trust. Its shares are often held by a purpose trust, which ringfences ownership and strengthens independence.
The board of the PTC often comprises a mix of individual directors, such as Guernsey-based professionals, alongside a trusted advisor to the family. This composition is, in many cases, aimed at ensuring that the Place of Effective Management (POEM) (i.e. tax residence) remains in Guernsey. Some UHNW families wish to appoint a family member depending on the family context. The PTC structure allows the family a greater degree of oversight over trust management, offering enhanced and customisable governance.
Protector
Another widely used mechanism is the appointment of a protector. This role involves overseeing trustee actions to ensure they align with the family’s objectives. A protector may be a family office acting in a corporate capacity, a trusted adviser, or a family member. Typical powers include veto rights over key decisions, authority to appoint or remove trustees, and approval of amendments or investment strategies. This arrangement provides comfort for the family without direct management of the trust, and it enhances governance, particularly in multi-jurisdictional structures. However, excessive powers may compromise trustee independence or raise tax concerns, and the protector’s role must be carefully structured in light of potential POEM or other tax implications.
Co-Signatory Powers
A further option, sometimes considered, is granting powers to co-sign or co-authorise payments. This arrangement can serve as an additional mechanism, provided it is implemented in conjunction with appropriate legal advice. This approach offers an additional layer of oversight but must be carefully evaluated to avoid operational inefficiencies, additional costs or unintended tax consequences.
Bespoke Trust Instrument Clauses
The trust deed itself can also be used as a control mechanism by including specified clauses that require family consent or consultation for particular trustee actions, such as distributions, amendments, or asset sales. Sale of the family business, for example, could be made subject to approval. This approach offers tailored oversight without the need for formal roles such as protector However, such clauses must be carefully drafted to avoid inadvertently triggering POEM, tax residency issues or conflicts of interest and would require bespoke legal drafting.
It is unavoidable that a degree of control is surrendered when establishing an offshore trust. However, to provide reassurance, these mechanisms can offer influence without undermining the integrity of the structure. Any combination of these can be deployed to suit the family’s preferences and the trust’s objectives. For example, a PTC structure may be combined with a protector, providing both strategic and operational oversight. Ultimately, the purpose of this article is to illustrate possible options, but the way these mechanisms are combined and applied in any given case requires careful consideration to ensure that governance, conflicts of interest, and structural integrity are not jeopardised. The optimal solution is always bespoke, reflecting the family’s goals, dynamics, and risk profile.
Modern offshore trust structures offer a spectrum of oversight mechanisms for UHNW families, each with distinct advantages and considerations. This framework is intended for discussion purposes only and does not constitute legal or tax advice. Clients should always consult qualified professionals before implementing any trust control mechanism.
For tailored guidance on structuring offshore trust arrangements please contact us.
Authored by Nel Schoeman
E: nel.schoeman@invictawealthsolutions.com T: +44 1481 742 097