Active Trust: Protect, Manage, and
Distribute Your Wealth Now
Take Control, Support Loved Ones,
and Ensure Long-Term Security
An Active Trust is a living trust that begins working the moment it is created. It allows you to transfer and manage assets immediately—ensuring timely support for beneficiaries, protection from risks, and smooth wealth distribution without delays.
Why Consider a Active Trust?
✅ Immediate Control & Protection
Begin managing and safeguarding your assets as soon as the trust is set up, without waiting for a triggering event.
✅ Structured Support for Beneficiaries
Provide regular, guided distributions to loved ones—ideal for young dependents or vulnerable family members.
✅ Bypass Probate, Reduce Delays
Ensure smooth and efficient transfer of assets while avoiding lengthy legal processes and reducing potential disputes.
Benefits of a Active Trust
Provide long-term protection for vulnerable beneficiaries, such as children, elderlies, or those with special needs, ensuring their needs are met.
Unlike a Will, an Active Trust bypasses the lengthy probate process, allowing for quicker and more efficient distribution of assets.
Can help reduce estate taxes and provide opportunities for tax planning, ensuring your wealth is passed on with minimal tax impact.
Helps maintain the privacy of your estate plan by avoiding public probate records and ensuring confidential management of your assets.
Can be tailored to suit your specific needs, whether for business succession, estate planning, or charitable giving, offering great flexibility.
Ensure the continuity of your business in place, allowing a smooth transition and management of business assets in case of incapacity.
Common Misconceptions About Active Trust
❌ “Setting up an active trust means I lose all control.”
Truth: You can structure an active trust to retain control and set specific instructions for how your assets are managed and distributed.
❌ “Only the rich need active trusts.”
Truth: They are valuable for anyone who wants structured asset management, protection for children or dependents, and smooth business or wealth transitions.
❌ “It’s too complicated to set up.”
Truth: With the right guidance, setting up is a straightforward process—and it helps prevent costly complications or disputes later.
How an Active Trust Offers Immediate Protection & Control
Example 1: Immediate Asset Protection During Divorce Proceedings
Ms. Chan, a 50-year-old investor, was going through a contentious divorce. She wanted to protect her hard-earned assets, especially properties and savings meant for her children.
Outcome:
She placed her key assets into an Active Trust before finalizing the divorce. As a result, those assets were no longer considered part of the marital pool, safeguarding them from potential division in court.
Key Takeaway:
An Active Trust provides immediate legal protection for your wealth, shielding it from claims during lawsuits, divorces, or creditor actions.
Example 2: Structured Support for a Child with Special Needs
Mr. Goh has a teenage daughter with autism. He wanted to ensure she would be financially cared for without giving her full control over a lump sum inheritance.
Outcome:
He created an Active Trust that provides monthly payouts and appoints a professional trustee to oversee medical and living expenses. The trust ensures long-term care without burdening other family members.
Key Takeaway:
An Active Trust is ideal for providing structured, long-term support for vulnerable beneficiaries — ensuring their needs are met with oversight and care.
Example 3: Smooth Succession Planning for a Family Business
Mr. Ong, a second-generation business owner, wanted to retire and transfer ownership gradually to his children without disrupting operations or facing hefty taxes.
Outcome:
By placing the company shares in an Active Trust, he was able to set clear conditions for control and income distribution, allowing a smooth transition while still having a say in strategic decisions during his lifetime.
Key Takeaway:
An Active Trust can streamline business succession by allowing phased control, minimizing conflicts, and ensuring continuity while reducing estate tax exposure.
Active trust vs Testamentary Trust:
What’s the Difference?
Assets are transferred into the trust right away
Useful for protecting assets during life
Offers full control over structure, beneficiaries while alive
Professional trustees can manage assets immediately
Assets remain under your name until the Will is executed
Primarily used for managing inheritance after death
Limited flexibility — terms are fixed once the Will is executed
Executors handle estate until probate clears, trustee steps in
Frequently Asked Questions
❓ What is an Active Trust?
An Active Trust is a trust that is established and activated immediately, providing continuous protection and management of your assets. It offers flexibility and control over your assets while you’re alive.
❓ Can I change the terms of my Active Trust?
Yes, you can modify the terms of your Trust during your lifetime, giving you complete control over its structure and beneficiaries.
❓ What are the benefits of an Active Trust over a Will?
It provides immediate asset protection, reduces probate delays, offers more control over distributions, and can shield assets from creditors or legal claims, unlike a Will that only takes effect after death.
❓ Does an Active Trust help with tax planning?
Yes, it can help with estate tax planning by managing assets efficiently, potentially reducing estate taxes and ensuring smooth wealth transfer.
❓ Can I remain in control of my assets with an Active Trust?
Yes, you maintain full control of your assets during your lifetime, while a professional trustee can step in when needed, according to your instructions.
❓ Who should consider an Active Trust?
Individuals seeking immediate asset protection, estate planning, or business continuity, particularly those facing potential risks like divorce, lawsuits, or special needs beneficiaries.
Testimonials
“Setting up an Active Trust was the best decision for my family and business. I now have peace of mind knowing my assets are protected, and my children will always be financially secure, no matter what. The flexibility it offers is exactly what I needed!”
“I was initially hesitant about trusts, but after creating an Active Trust, I realized how easy and effective it is. It has given me the confidence that my wealth is being managed according to my wishes, and I have full control while I’m alive. Highly recommend it!”
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