How Does A Trust Work?

A trust may not be right for everyone, but they may play a key role in proper estate planning!

 

A lot of people think trusts are only for the super wealthy — not true. Trusts can benefit anyone who wants to manage how they leave their money to their family. A trust can give you control over who gets what, and when, how they get it, and why.

How do trusts work? Trusts are like containers you can put things in to. You, the grantor, can place assets – like your house, life insurance policies, investments, and other possessions – into a trust. These assets become property of the trust, and are managed by your trustee. You appoint the trustee to ensure your wishes are carried out. As grantor, you decide who receives the assets inside your trust. Typically, your spouse, your children, grandchildren, and charities of your choice are the beneficiaries who receive the assets held in trust.

When you create a trust, you determine how the funds inside your trust will be used, and when they will be dispersed.

For example, you may want to use assets in your trust to jump-start your children’s careers when they’re 25. Or supplement their retirement when they turn 60. Or pay college tuition expenses for your grandchildren. Or provide annual scholarships to your alma mater. Your appointed trustee ensures everything is managed according to your instructions.

It’s important to know there are different kinds of trusts for different purposes.
Some are designed to manage who receives your assets, and when. Others may offer tax planning benefits. Make sure you work with financial experts, so that your trusts are properly structured to carry out your specific intentions.
Trusts can offer you and your family many financial advantages. Talk with your advisor and an estate planning attorney. Find out how trusts can help you create a lasting legacy for those you love the most.

 

Published By:

Sofan Tan

 

Financial Consultant | 20+ Years Experience in Wealth Management.

Helping Clients achieve long-term financial security for their families with holistic and personalized planning.

Fluent in Bahasa Melayu, I am comfortable working with mass affluent individuals and high-net-worth (HNW) families.

 

What I Do

 

– Financial Risk Analysis & Portfolio Management: I provide comprehensive advisory services to identify, assess, and mitigate financial risks while optimizing investment portfolios across private and public markets.

– Insurance Planning: I specialize in structuring insurance portfolios that protect clients against unforeseen risks such as illnesses, bankruptcy, or creditor claims.

– Estate Planning: Designing estate plans that safeguard and increase clients’ estate so as to ensure smooth legacy distribution.

– Will Writing & Trust Services: Collaborating closely with business partners to implement bespoke wills, trusts, and estate planning solutions tailored to individual needs.

 

My Most Memorable Client Engagement: Charitable Giving

 

A wealthy Indonesian retiree once came to me with an investment challenge:

He had over $500,000 tied up in a bank’s dual currency trading product for nearly 20 years, yet it was giving minimal returns.

Upon understanding his goals, I learned that the funds were intended to:

* Provide steady income for his wife’s retirement and

* Be distributed to overseas charities upon his wife’s passing.

 

I explained that the dual currency product was not the ideal vehicle for his wife’s retirement needs. Instead, I recommended a life annuity insurance plan that offered:

* A monthly payout for life to support his wife’s retirement income and

* A death benefit directed to his chosen overseas charities via insurance nomination.

 

He was delighted with this tailored solution that was done over 10 years ago when the SGD to IDR rate was about 1 SGD = 9,000 IDR. In Apr 2025, the rate has shifted to 1 SGD = 13,000 IDR. He not only benefit from IDR’s currency devaluation but also enjoy a reliable monthly income in SGD, perfectly aligned with his financial and philanthropic goals.

 

Why Work With Me?

 

I believe that effective wealth management is about more than just numbers – it’s about:

* understanding your unique goals,

* family dynamics, and

* legacy aspirations.

 

My approach is holistic and client-centric, ensuring every financial decision supports your long-term vision and peace of mind. Feel free to connect with me to explore how we can work together to secure your family’s financial future with clarity and confidence.

 

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  • Financial Alliance Pte Ltd ( “FAPL”) is licensed by the Monetary Authority of Singapore (“MAS”) and allowed to conduct financial advisory activities in accordance with the Financial Advisers Act (Cap. 110) (“FAA”) and the Securities & Futures Act (Cap. 289) (“SFA”) within the jurisdiction of the Republic of Singapore and in accordance with the licenses granted by MAS
  • 鑫盟理财私人有限公司( “鑫盟理财”)持有由新加坡金融管理局(“MAS”)所颁发的牌照，并许可在新加坡共和国境内依据财务顾问法（第110章）和证券与期货交易法（第289章）进行财务咨询等相关业务
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In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.

根据《个人数据保护法》，鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料（例如姓名，证件号码，联系电话，邮寄地址，电邮地址和照片）。 该政策可在本公司网站上查寻，网址为 https://fa.com.sg/data-protection-policy/.

By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.

提交此表格，即表示您已阅读并理解鑫盟理财私人有限公司的个人数据政策