Legacy Planning: Why Setting Up a Trust Matters
Protect Your Wealth, Provide for Your Loved Ones, and Preserve Your Legacy
A well-structured Trust ensures your assets are protected and managed according to your wishes. Without one, your wealth may face legal risks or unintended outcomes. At Property Wealth Planner, we help secure your legacy for generations to come.
Trust in Singapore: What You Should Know
A trust helps safeguard your assets and ensures they are managed and distributed according to your wishes.
It’s a smart step today for lasting security tomorrow.
✅ Key Requirements for a Valid Trust in Singapore
❓ Is Probate Needed for a Trust?
No. Unlike a Will, a trust does not require probate. Once the trust is established, the Trustee can manage and distribute the assets without going through the court process. This makes the transfer of assets quicker and more private compared to a Will.
❓ Should You Update Your Trust?
❓ What Happens If You Don’t Have a Trust?
This can lead to:
Why Having a Trust is Important ?
Guarantees professional management and protection of assets, with expert oversight to preserve and distribute wealth as intended.
Provide for your loved ones and ensure their financial security
Provide for your loved ones, ensuring their financial security by managing and distributing assets according to your intentions.
Minimize legal disputes
and avoid the complications of probate
Shield your assets from creditors and potential risks
Preserve your legacy
for future generations
Plan for unforeseen events
like mental incapacity
Common Misconceptions About Trust
❌ "Trusts are only for the wealthy."
Trusts can be beneficial for anyone who wants to protect their assets, ensure smooth distribution, and provide for loved ones. They are not exclusive to the wealthy.
❌ "Once I set up a trust, I can’t make changes."
Some trusts, like revocable trusts, allow you to make changes at any time during your lifetime, including altering beneficiaries or assets.
❌ "A trust is a substitute for a Will."
While trusts can be a powerful tool, you may still need a Will in conjunction with a trust to address any matters not covered by the trust, such as minor assets or certain personal directives.
Types of Trusts We Offer
We work with trusted legal professionals and trustees to customise solutions that fit your goals and family needs.
Standby Trusts
A Standby Trust is a living trust created during your lifetime that initially holds minimal assets. It remains dormant until it is activated by a specific event, like:
Voluntary injection of assets, Death, Mental incapacity
Who is it for?
Individuals who want a ready structure for future asset protection without committing substantial assets upfront.
An Active Trust is a living trust that holds substantial assets from the beginning.
The trustee actively manages investments, distributes income, and ensures the terms of the trust are fulfilled.
Who is it for?
Families and individuals who require professional management of real estate, investments, or business interests immediately.
Who is it for?
Families and individuals who want structured, secure management of life insurance proceeds — especially for young dependents or vulnerable beneficiaries.
Who is it for?
Individuals and families looking to make a long-term impact by supporting charitable causes, ensuring their legacy of giving continues for generations.
We also assist in setting up specialised trust structures such as:
-Private Trust Companies: For high-net-worth families seeking direct control.
-Business Succession Trusts: For smooth transfer of business ownership.
-Escrows and Bare Trusts: For specific commercial or legal purposes.
Foreign Clients, including EP
We assist foreign clients, including Employment Pass (EP) holders and international families, with:
-Setting up Singapore-based trusts
-Asset protection and international estate planning
-Managing cross-border assets under Singapore trust law
How Trusts Can Protect and Manage Your Assets
Real-Life Example 1: Protecting Crypto Assets Through Trusts
Scenario:
In a recent landmark ruling, Singapore’s High Court recognized cryptocurrency as legally enforceable property. This means crypto assets can be held in a trust for better protection.
Outcome:
By placing crypto assets in a trust, individuals can ensure their digital holdings are safeguarded and distributed according to their wishes, even in the face of legal disputes or challenges.
Key Takeaway:
A trust helps protect crypto assets, ensuring they are managed and passed on securely, just like traditional
Real-Life Example 2: Protecting Family Wealth from Divorce
In a recent case, a Singapore judge ordered a man to include approximately $10 million of his concealed wealth in the matrimonial asset pool during his divorce proceedings. The man had attempted to hide assets by failing to disclose ownership of multiple companies and bank accounts. Despite his efforts, the court uncovered his hidden assets through a discovery application filed by his former wife.
Outcome:
The court’s ruling underscores the challenges individuals face in protecting assets during divorce proceedings. A trust can serve as a proactive measure to safeguard assets by legally separating them from personal ownership, thereby reducing the risk of assets being included in the matrimonial asset pool.
Key Takeaway:
Establishing a trust before marriage or during the marriage can provide a legal framework to protect assets from being divided in divorce proceedings, ensuring that wealth is preserved for intended beneficiaries.
Real-Life Example 3: Managing Inheritance for Minor Children
In a recent case, a 26-year-old man sought to terminate a trust set up by his parents for a $4.9 million property. The father objected, alleging the trust was a scheme to avoid paying Additional Buyer’s Stamp Duty (ABSD). However, the court ruled in favor of the son, affirming the trust was genuine and intended to benefit him. This case underscores the importance of clear intentions and documentation in trust arrangements
Outcome:
The court’s decision highlights the effectiveness of trusts in managing significant assets, ensuring they are used as intended, and protecting the interests of beneficiaries.
Key Takeaway:
Establishing a trust with clear terms and intentions can safeguard assets for beneficiaries, ensuring their proper management and protection.
Trusts vs Wills: What’s the Difference?
Many clients use both a Will and a Trust for a complete legacy plan.
Trusts
Effective during your lifetime or upon trigger events
Private and confidential
Provides for mental incapacity
Wills
Assets distributed after probate
Public once probate is granted
Only addresses asset distribution after death
Frequently Asked Questions
❓ What happens to a trust when I pass away?
When you pass away, a revocable trust becomes irrevocable and is administered according to the terms you outlined in the trust deed. The appointed Trustee will continue to manage and distribute assets to the Beneficiaries without the need for probate.
❓ When is the right time to create a trust?
Many people set up trusts when they acquire substantial assets, have children, or plan for retirement or succession.
❓ Is a trust expensive to maintain?
Trust setup and management costs vary based on complexity, but they are usually a small investment compared to the protection they offer.
❓ Can foreigners set up a trust in Singapore?
Yes. Singapore welcomes both residents and non-residents to establish trusts under its robust legal framework.
❓ How can I choose the right Trustee for my Trust?
The Trustee should be someone who is trustworthy, responsible, and able to manage financial affairs. You can choose an individual (e.g., a family member, lawyer, or trusted advisor) or a corporate trustee (e.g., a bank or trust company). It’s important that the Trustee understands the duties and responsibilities involved.
❓ Who Should Have a Trust?
Anyone who has assets, dependents, or specific wishes about how their estate should be managed can benefit from a trust. This includes:
Testimonials
“Setting up a trust with Property Wealth Planner gave me peace of mind knowing my assets are securely managed and my family’s future is protected. The team was professional, informative, and made the entire process seamless. Highly recommend!”
“I was unsure about trusts, but after speaking with the team at Property Wealth Planner, I understood the benefits and how it could safeguard my assets. Their guidance was invaluable, and now I feel confident my wealth will be passed on according to my wishes.”
Secure Your Legacy with Confidence
Talk to us about the right trust structure for your family’s future.
Ready to Protect Your Legacy?
Latest News & Articles on Trusts
Stay informed with recent developments and expert opinions on trust-related matters in Singapore:
Invest Talk Podcast:
Tips on legacy planning and setting up trusts
power of trusts
