Private Retirement Plan Trustee (PRPT)
For California residents, a properly structured Private Retirement Plan is a powerful estate and retirement planning tool that helps protect your assets from creditor claims under California law, while requiring only minimal annual maintenance. Because plan structure and tax treatment vary by client circumstances — non-qualified plans offer no contribution deduction but far greater design flexibility, while qualified plans may offer contribution deductions with added compliance requirements — our trust officers work with you and your advisors to determine the structure that best fits your goals.
Who can qualify for a PRPT?
A PRPT is available only to California residents. California Code of Civil Procedure § 704.115 recognizes private retirement plans and provides an exemption from creditor claims — including in bankruptcy — for funds, death benefits, and distributions held in a properly structured and maintained plan. To qualify for this protection, a plan must be designed and administered principally for genuine retirement purposes; California courts have denied the exemption to plans found to be created primarily to defeat creditors rather than to provide for retirement. Working with an experienced trustee to structure and fund your plan appropriately is essential to preserving this protection.
The benefits of a PRPT
Asset protection, properly structured
A PRPT is funded through California's statutory exemption rights — not by transferring or gifting assets away — so protection is built into the plan design from the outset, provided the plan is genuinely maintained for retirement purposes over time.
Comprehensive
When properly structured and administered, a PRPT can protect qualifying assets, earnings, and gains during accumulation and through disbursement, covering both lifetime and death benefits for plan beneficiaries.
Flexible and cost-efficient
A PRPT can be tailored as a qualified or non-qualified plan depending on your goals — offering flexibility in contribution levels, tax treatment, and administrative requirements — with ongoing maintenance costs that are modest relative to the protection and planning value provided.
What does it take to structure a PRPT?
- Establishment primarily for retirement purposes, and not any creditor avoidance.
- An actuarial basis for funding.
- Each participant's trust must specify the plan's tax intentions.
- An independent trustee named in each participant's trust — Crawford Trust can serve in this role.
- An independent plan administrator.
How can you get started on a PRPT?
Crawford Trust partners with the industry leader in PRPT administration, who developed the proprietary analysis framework — including the upfront funding analysis, annual benchmarking, and future-distribution testing.
A PRPT requires specialist external counsel. Contact Crawford Trust to connect directly with a PRPT specialist.
Get in touchRelated services
Other ways we serve families like yours.
Directed Trustee Services
Continue the relationships with the financial advisors you have appointed. Nevada's directed-trusts statutes let families share investment, distribution, and administration roles.
Successor Trustee Services
Trust administration needs can change. Crawford Trust can assist in your successor trustee circumstances.
Trust Decanting
Circumstances change. Nevada's exceptional statutes allow changes to your existing trust regardless of its current situs.
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Preserving legacies and peace of mind — every day.
The journey to your legacy was unique. Let Crawford Trust help develop and administer a Trust that will protect it — for centuries to come. Contact us for a complimentary consultation.