What Is a Trust?
A trust is a legal structure where one party (the trustee) holds and manages assets for the benefit of others (the beneficiaries), in accordance with the terms laid out in a trust agreement. Trusts are a cornerstone of estate planning and succession planning, particularly when protecting family assets and minimizing tax implications.
Types of Trusts
- Revocable Trusts – Flexible and amendable during the grantor’s lifetime
- Irrevocable Trusts – Locked structures offering greater asset protection and tax advantages
- Charitable Trusts – Structured to support philanthropic initiatives
- Private Family Trust Companies (PTCs) – Legal entities formed to serve as a professional trustee, often based in favorable jurisdictions like South Dakota
Primary Advantages
- Strong fiduciary services with a clearly defined legal framework
- Protection of family assets from creditors or lawsuits
- Alignment with wealth transfer planning objectives
- Structured oversight through a board (PTC Board) or individual trustee
Key Considerations
- Limited flexibility for adapting to family dynamics or new investments
- Focused on legal ownership, not investment management or day-to-day operations
- Often requires pairing with external service providers for tax advice, real estate oversight, or financial planning
What Is a Family Office?
A family office is a private firm—often established as an LLC or corporation—that is formed to manage the financial affairs, investments, and personal needs of a wealthy family. It delivers a comprehensive approach to private wealth and estate management through dedicated teams and a highly customizable structure that often does involve trusts as part of it.
Types of Family Offices
- Single Family Office (SFO) – Tailored to serve one family; offers maximum control, flexibility, and privacy
- Multi-Family Office (MFO) – Serves several families; benefits from cost efficiencies and shared services
- Virtual Family Office – A lean structure that leverages external service providers to reduce overhead
Range of Services
- Investment advisory, including access to alternative investments, private equity, and venture capital
- Oversight of real estate, operating businesses, and tax planning
- Lifestyle management, concierge services, and philanthropic strategy
- Family governance design and succession planning
- Family education to prepare future generations for stewardship and leadership
Why Families Choose This Model
- A complete multi-generational wealth and estate management solution
- A dedicated team focused on long-term objectives and the family’s evolving needs
- Greater transparency and control over every decision and provider relationship
- Holistic coordination across tax services, legal entities, and investment strategy
- Direct oversight of the investment process, often through an in-house or outsourced investment advisor
Trust vs Family Office: Key Differences
Feature |
Trust |
Family Office |
Primary Purpose |
Asset protection, estate planning |
Full-service wealth and lifestyle management |
Legal Structure |
Trust agreement, individual or professional trustee |
Business entity (LLC, corporation) |
Control |
Defined by trust document |
Full discretion by family or board |
Services Offered |
Asset custody, fiduciary duties |
Investment management, lifestyle, planning |
Flexibility |
Limited, fixed structure |
Highly flexible, scalable |
Governance Structures |
Trustee or PTC Board |
Family board, operating agreement |
Cost Structure |
Typically lower admin costs |
Higher costs but broader services |
Best For |
Legal protection and tax optimization |
End-to-end wealth oversight |
Masttro: The Operational Engine Behind Modern Wealth Management
The complexity of modern wealth demands technology that’s built for family governance, financial management, and strategic planning.
That’s where Masttro comes in.
One Platform. Full Visibility.
Masttro serves as the source of truth for ultra-wealthy families managing assets through trusts, family offices, or both. The platform centralizes all wealth data – spanning liquid assets, private equity, real estate, and trust-held entities – into one real-time ecosystem.
Features Designed for Both Models:
- Custom views for trustees, advisors, and family members
- Entity-level reporting that maps complex legal structures
- Granular permissions for board of directors, investment managers, and service providers
- Real-time tracking of trust assets, capital flows, and alternative investments
- Integration with financial institutions, tax advisors, and external administrative services
Support for Complex Structures
Masttro’s tools support Private Family Trust Companies, Single Family Offices, Multi-Family Offices, and other hybrid legal structures. Whether it’s mapping a family enterprise held in trust or creating a detailed report on performance for a family committee, the platform handles it with precision and clarity.
Why Families Choose Masttro
- Replaces fragmented reporting from traditional wealth management firms
- Supports succession plans by offering multi-generational access and education
- Reduces reliance on spreadsheets and manual processes
- Empowers the family to take a structured approach to both fiduciary and strategic planning
Trust, Family Office, or Both?
Choosing between a trust and a family office depends on your family’s needs, objectives, and current setup. In many cases, the most effective structure is not an either/or—it’s a coordinated strategy.
Use a Trust If You Need:
- Long-term asset protection
- A clear succession plan
- Tax optimization through irrevocable structures
- A fiduciary framework to manage inheritance or charitable assets
Use a Family Office If You Need:
- Control over investment decisions and execution
- Support for private equity, real estate, and operating businesses
- A broad range of services beyond finances: travel, security, education, etc.
- A central hub for governance, planning, and communication
Use Both If You Want:
- The legal protections of a trust with the flexibility of a modern office
- To balance structure and adaptability across multiple generations
- To prepare heirs through education, exposure, and strategic involvement
Final Thought: Structure Wealth to Serve the Family, Not the Other Way Around
Substantial wealth creates opportunities – and responsibilities. Trusts and family offices each offer powerful ways to steward wealth across generations, but their roles are distinct. When chosen with careful consideration, and supported by platforms like Masttro, families can build the structure that best serves their values, their vision, and their legacy.
Speak to us to find out exactly how Masttro can help you.