What is a Trust?
A trust is an alternative way to distribute your estate.
A trust is a legal arrangement between you (the settlor) and a trustee.
When you set up a trust, your appointed trustee takes ownership of your assets and manages them in the best interest of your beneficiaries. You can decide the terms of the trust including who your beneficiaries are, and how much power you wish to retain over your trust.
As assets placed in a trust are not part of a deceased’s estate, probate is not required, and disputes over the assets can be avoided.
Setting up a trust during your lifetime – A living trust is set up during a settlor’s lifetime, where the assets are transferred to the trust. Examples are Inter-Vivos, discretionary or revocable trusts. It is done by executing a trust deed together with the transfer of assets to the trustee.
The settlor can revoke or terminate the trust at any time.
Testamentary trust – It is made using a Will and takes effect after the settlor’s death. This is useful where you have:
Once this trust is in place, it is irrevocable.
You may consider setting up a trust if you want to:
If you have a dependant with special needs, you can approach the Special Needs Trust Company (SNTC) to help you set up a trust for him/her.
Wondering if a Trust arrangement is suitable for your situation, engage a legal adviser or an estate planner to map out your intentions & instructions in your family trust deed.
To find out more, attend our webinar (Grow Assets Even After Death) or have a FREE Estate Planning Risk Assessment to find out how prepared are you for your loved ones if you’ve passed on yesterday.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
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