This is because the Trust is an excellent solution for many different kinds of problems regarding wealth accumulation, wealth protection, wealth preservation and wealth distribution. A trust is ideal for example when your children are too young and you are concerned that the guardian may not do a good job of safeguarding the assets meant for their university education and life needs.
Without a doubt, having a Will written is important. However, unlike a Will, a Trust can serve many purposes to complete estate planning. For instance, a Trust allows wealth protection and preservation which a Will cannot do.
Marriage will not revoke a Trust.
A Trust is a legal arrangement whereby the owner (the Settlor) entrusts another party (the Trustee) to take care of his asset/s for the benefit of the beneficiaries he has chosen under instructions in the form of a trust deed that the Trustee follows.
A Trustee can be a trust corporation or a person chosen by the settlor to carry out the instructions as contained in the trust. As a Trustee, he has a fiduciary duty to act in the best interest of the beneficiaries.
Yes, anyone can be the beneficiary.
No, unless the instrument itself is the document evidencing the transfer of land or shares.
Only one witness is required to be part of the process of execution.
Section 32 Civil Law Act (Cap. 43) - the trust can last for up to 100 years.
No, the Trust settlement is effective once it is executed by the Settlor and the Trustee unlike a Will.
Any asset that legally belongs to the Settlor except those under joint ownership of which written consent must be obtained from the joint owner.
You can revoke/ amend it as long as it is a Revocable Trust. In the case of an Irrevocable Trust, you would need the consent of the Beneficiaries.
Interests of such deceased Beneficiary can be dealt with accordingly under the terms of the Trust.
If it is your intention that all your children should be part of the Beneficiaries under the Trust, with the right wording, it is not necessary to amend the Trust Deed.
A person is legally capable of holding property upon attaining the age of 21. If you want your children to inherit later then it should be expressly stated in the trust deed the age which they should inherit.
If expressly provided under the Trust Deed, the Protector may remove and replace the Trustee subject to such conditions as may be stipulated.
The Trust can be one of the effective legal tools to help you manage your wealth or financial planning.
It requires the Settlor to give away his assets such as shares, money and property to Rockwills Trustee Ltd to hold on trust for the benefit and enjoyment of the beneficiary(ies).
The Settlor may impose conditions for the Trustee to follow, such as releasing monies only for a certain purpose or in a staggered manner.
It simply means the transfer of the legal title of the Settlor's assets to Rockwills Trustee Ltd. Therefore, Rockwills Trustee Ltd will become the legal but not the beneficial owner of the settlor’s assets.
The settlor does not own the assets thereafter since these are no longer under his name. However, the Settlor can enjoy the benefits of those assets if he is one of the beneficiaries.
The Settlor can appoint anybody he desires as Beneficiary which includes himself.
The properties or their distribution under the Trust (hereinafter referred to as Living Trust) are not the subject of any order from the Court as they do not form part of the Will.
A Trust created during the Settlor’s lifetime is a Living Trust. Ordinarily by way of a document (i.e, a trust deed or a declaration of trust) executed by the Settlor.
Testamentary Trust arises from a clause in a Will after the death of the Testator and is subject to the estate administration process.
Yes. the Testamentary Trust forms part of the Will. Therefore, upon the death of the Testator, the properties in the Will and in the Testamentary Trust will be frozen. Grant of Probate or Letters of Administration must first be obtained.
There is an actual transfer of the properties to the Trust at the time it is created.
Wills and Trusts are not mutually exclusive. Even those who are very wealthy are unlikely to transfer everything they have into a Trust during their lifetime. The Will then covers all residual assets that remain upon death.
1. Certainty of intention to create a Trust
2. Certainty of the subject matter (property of the Trust)
3. Certainty of the objects (Beneficiaries) of the Trust
The Living Trust prevails over the Will and the properties fall within the realm of the Living Trust.
Your instructions in the Testamentary Trust will only be carried out upon death and it is also subject to the waiting period of the administration process. Whereas the Living Trust is already set up and your instructions can be administered immediately.
A revocable Trust is one where the Settlor reserves a power or right to amend or terminate the Trust. An irrevocable Trust is a Trust where the Settlor does not have such power.
We would recommend that it be revocable only by the Settlor.
In the event that the Settlor exercises his power of revocation, the Trust will come to an end and the Trustee will be under an obligation to transfer all the property of the Trust back to the Settlor.
To have his assets protected from creditors. This is because, in the event of the Settlor’s bankruptcy, all rights and powers exercisable by him in relation to the provisions of a trust deed, including the right to revoke the Trust, will be assigned to the Official Assignee.
Yes, if the Trust is irrevocable, subject to rules applicable in the case of bankruptcy, it will prevent the client’s estate creditors from claiming the trust property.
The Living Trust created needs to be irrevocable and the settlement made subject to compliance with bankruptcy laws.
A Fixed Trust is one in which the amount or proportions to be distributed to the Beneficiaries have been determined. The beneficial interest of each Beneficiary has been clearly defined. A Discretionary Trust on the other hand is a Trust in which the amount or proportions to the Beneficiary(ies) are not fixed but left to the discretion of the Trustee, although he may be guided by the Settlor through a Letter of Wishes.
Yes, they both can be either Fixed or Discretionary.
There are various reasons why they create such Trust but most notably is that it is created to prevent the Beneficiaries’ creditors from claiming the Trust assets.
Abuse is possible especially if the Trustee is an individual but such will be difficult or not possible in the case of a professionally-run Trustee company where the Trustee is bound to observe the Settlor’s Letter of Wishes and where the corporate governance and internal controls are strong and the Trustee is overseen by MAS(Monetary Authority of Singapore).
It is a written document made by the Settlor and addressed to the Trustee expressing the Settlor’s wishes as to how certain aspects of the Trust are to be administered. The wishes are, however, not binding on the Trustee but the Trustee as a professional trust company in business is bound to follow the wishes unless these are against the law or where carrying out the wishes will expose the Trustee to liability litigation.
An Irrevocable Discretionary Trust. It protects the Trust property from creditors, whether the bankruptcy is that of the Settlor or the Beneficiaries subject to certain conditions under bankruptcy laws.
Whatever interest or whatever property a Trustee holds on trust does not belong to him but to the benefit of the Beneficiaries. Therefore, in the event of a Trustee’s bankruptcy, the Trust property will not be vested in the Official Assignee.
A Protector is the person appointed by the Settlor to oversee and give consent to certain actions of Trustee or to perform certain functions stated in the Trustee. The Protector acts like a watch-dog in the restraint of the Trustee’s powers and to safeguard against a Trustee who may become incompetent, uninterested or abuse its powers.
The duties or powers of a Protector are specified in the Trust Deed. A Protector cannot revoke a Trust even though the Settlor has given such a right. The ultimate power of Protector is to remove a non-performing Trustee and appoint a new one.
The appointment of a Protector is optional but it is highly encouraged.
Anybody who has reached legal maturity and is of sound mind whom the Settlor trusts.
A Living Trust created using life insurance as trust property for the purpose of providing liquidity for liability cancellation or living needs or for equalisation of distribution in estate planning.