Sophisticated trust structures for high-net-worth families. Protect your assets, optimize for multi-generational wealth transfer, and secure your legacy with expert trust planning tailored to Singapore law.
A trust is a legal arrangement where assets are transferred to trustees who manage them for the benefit of named beneficiaries. Unlike wills which only take effect upon death, trusts can operate during your lifetime and continue for multiple generations.
1. Settlor: The person who creates the trust and transfers assets into it
2. Trustee: The person or company who legally owns and manages the trust assets
3. Beneficiary: The person(s) who benefit from the trust assets
In Singapore, trusts are governed by the Trustees Act and common law principles. Once you transfer assets into a trust, you no longer legally own them - the trustee does. However, the trustee must manage these assets according to the trust deed instructions for the beneficiaries' benefit.
Created during your lifetime and takes effect immediately. You can be both settlor and beneficiary, enjoying asset protection while retaining benefit during life.
Setup Cost: S$8,000 - S$20,000
Annual Fees: 0.5% - 1.5% of trust assets
Created through your will and only takes effect upon death. Common for protecting minor children or vulnerable beneficiaries.
Setup Cost: S$3,000 - S$10,000 (included in will drafting)
Annual Fees: 0.5% - 1.5% of trust assets (after death)
Trustees have discretion over distributions to beneficiaries from a defined class (e.g., "all my descendants"). Maximum flexibility for changing family circumstances.
Setup Cost: S$15,000 - S$40,000
Annual Fees: 0.75% - 1.5% of trust assets
Life insurance policies held in trust. Death benefits bypass probate and are protected from creditors and estate claims.
Setup Cost: S$1,500 - S$5,000
Annual Fees: Minimal to none
Established for charitable or specific purposes rather than individual beneficiaries. Creates lasting philanthropic legacy.
Setup Cost: S$10,000 - S$50,000+
Annual Fees: Varies based on structure
Once assets are in trust, they're protected from your personal creditors, lawsuits, and business failures. Beneficiaries also protected from their own creditors in discretionary trusts.
Trust assets bypass the 6-12 month probate process entirely. Beneficiaries get immediate access to funds without court involvement or public disclosure.
Unlike wills which become public during probate, trusts remain completely private. Your asset distribution, beneficiaries, and wealth remain confidential.
Specify exactly when and how beneficiaries receive assets (e.g., 1/3 at 25, 1/3 at 30, 1/3 at 35). Protects spendthrift beneficiaries and immature heirs.
Trusts can last 100+ years in Singapore, providing for children, grandchildren, and great-grandchildren. Build a dynasty with professional wealth management.
If you lose mental capacity, your living trust continues seamlessly. No need for court-appointed guardianship or conservatorship proceedings.
While trusts can be established for any amount, the setup and ongoing costs typically make them cost-effective only for estates exceeding S$5 million. For smaller estates, comprehensive wills with testamentary trusts may be more appropriate.
Meet with trust lawyer or trust company to discuss objectives, assets, beneficiaries, and potential trust structures. Determine if trust is appropriate for your situation.
Timeline: 1-2 weeks | Cost: Often free initial consultation
Design trust structure tailored to your needs: type of trust, beneficiaries, distribution rules, trustee selection, investment guidelines, and termination provisions.
Timeline: 2-4 weeks | Cost: Included in setup fee
Legal team drafts comprehensive trust deed outlining all terms, powers, duties, and provisions. This becomes the governing document for the trust's entire lifetime.
Timeline: 3-6 weeks | Cost: S$8,000 - S$40,000 depending on complexity
Sign trust deed with trustees. If using professional trustee, execute trustee appointment and fee agreements. Ensure all parties understand their roles and responsibilities.
Timeline: 1-2 weeks | Cost: Legal fees for execution
Transfer assets into trust name. This includes property title transfers, investment account re-registration, insurance policy assignments, and business interest transfers.
Timeline: 4-12 weeks | Cost: Stamp duty, registration fees vary by asset
Trustees manage assets, make distributions, file tax returns (if applicable), maintain records, and provide regular reporting to beneficiaries as specified in trust deed.
Ongoing | Annual fees: 0.5% - 1.5% of trust assets
Simple living trust: 2-3 months
Complex family trust with multiple assets: 4-6 months
| Trust Type | Typical Range | What's Included |
|---|---|---|
| Insurance Trust | S$1,500 - S$5,000 | Basic deed, policy assignment |
| Simple Living Trust | S$8,000 - S$15,000 | Deed drafting, basic assets |
| Testamentary Trust | S$3,000 - S$10,000 | Included in will drafting |
| Family Trust (Discretionary) | S$15,000 - S$40,000 | Complex deed, multiple assets |
| International Trust | S$30,000 - S$100,000+ | Multi-jurisdiction coordination |
Trust companies typically charge 0.5% - 1.5% of trust assets annually, with minimums of S$5,000 - S$20,000 per year.
Example: S$10M trust = S$50,000 - S$150,000 annual fee
Family members or friends as trustees may serve for free, but lack professional expertise and face personal liability.
Cost: Typically free, but requires time and expertise
While trusts appear expensive, compare to alternatives:
| Feature | Living Trust | Will |
|---|---|---|
| When Takes Effect | ✓ Immediately upon creation | Only after death |
| Probate | ✓ Avoids probate entirely | ✗ Must go through probate (6-12 months) |
| Privacy | ✓ Completely private | ✗ Becomes public record |
| Asset Protection | ✓ Strong protection from creditors | ✗ No creditor protection |
| Incapacity Planning | ✓ Continues seamlessly | ✗ No help if incapacitated |
| Setup Cost | ✗ Higher (S$8K - S$40K+) | ✓ Lower (S$200 - S$3K) |
| Ongoing Costs | ✗ Annual fees (0.5% - 1.5%) | ✓ None until death |
| Complexity | ✗ More complex to set up | ✓ Simpler |
| Control After Death | ✓ Detailed ongoing control | Limited control |
| Best For | Estates over S$5M, complex needs | Estates under S$5M, simple needs |
High-net-worth individuals typically have both a living trust (for major assets) AND a will (called a "pour-over will") to catch any assets not transferred to the trust. This provides maximum protection and flexibility.
Your trustee choice is critical - they'll manage your wealth for decades. You have three main options:
Most Popular Choice
Yes, you should have a "pour-over will" that transfers any assets not in the trust into it upon death. This catches forgotten assets, future inheritances, or newly acquired property. It also names guardians for minor children, which trusts cannot do.
Yes, with a revocable living trust, you can be both settlor and trustee, maintaining complete control during your lifetime. However, you should appoint a successor trustee to take over upon your incapacity or death. Note that being your own trustee provides less asset protection from creditors.
Yes, Singapore has a well-developed trust law based on English common law principles. The Trustees Act governs trust creation and administration. Singapore is considered one of the best jurisdictions in Asia for trust planning due to its political stability, strong rule of law, and favorable trust laws.
Setup costs range from S$1,500 (simple insurance trust) to S$40,000+ (complex family trust). Annual management fees typically run 0.5% - 1.5% of trust assets with minimums of S$5,000 - S$20,000. For estates under S$5 million, the ongoing costs may outweigh the benefits.
Revocable trusts can be changed or canceled at any time during your lifetime. Irrevocable trusts generally cannot be changed once created (though some jurisdictions allow modifications with beneficiary consent or court approval). Irrevocable trusts offer stronger asset protection but less flexibility.
No, HDB flats cannot be held in trust due to Singapore's public housing regulations. HDB flats must be owned directly by individuals who meet eligibility criteria. However, you can use a will to specify how your HDB flat should be distributed, or structure it as joint tenancy.
The trust continues according to its terms. If you were the trustee, the successor trustee takes over seamlessly without probate. The trust can continue for many years (or even generations) providing for beneficiaries according to the distribution schedule you specified in the trust deed.
Connect with qualified trust specialists and lawyers who can design a customized trust structure for your wealth preservation goals