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Trusts are an integral part of wealth management and estate planning in Singapore. A trust is a type of legal arrangement where a person, known as a settlor, transfers property to another person, called a trustee, to hold for the benefit of a third person, the beneficiary. In Raffles Place, Singapore's financial district, trusts are commonly used for asset protection, privacy, succession planning, and charitable purposes.
Creating a trust involves complex legal processes and requires a keen understanding of the law. It’s important to have legal support to ensure that the trust is correctly set up and to avoid any disputes or legal issues in the future. If you are a beneficiary, a lawyer can assist you to understand your rights and entitlements. Furthermore, trustees often need legal advice to understand and perform their duties and obligations under the trust.
In Singapore, the creation and operation of trusts are governed by several laws, including the Trust Companies Act, Trustees Act, and Income Tax Act. These laws cover everything from the duties and responsibilities of trustees, to the rights of beneficiaries, and taxation implications. One key aspect is that trusts in Singapore may be subject to tax benefits depending on how they are established, making them appealing for estate planning and wealth management.
There are several types of trusts in Singapore including discretionary trusts, fixed trusts, charitable trusts, and revocable and irrevocable trusts.
Setting up a trust involves a number of steps including deciding the type of trust, appointing a trustee, and transferring assets into the trust. It's essential to have a written trust deed and to seek legal advice throughout the process.
While trusts generally provide a level of protection against challenges, they can still be contested in certain situations such as when it's believed that the settlor was pressured into setting up the trust.
Trusts in Singapore are subject to different taxation rules depending on their type and structure. Some trusts may be tax-exempt while others may be subject to tax.
A trust in Singapore can last up to 100 years, also called the rule against perpetuities. This rule can be excluded in the case of charitable trusts.
The Monetary Authority of Singapore (MAS) and the Ministry of Law provide useful information and resources related to trusts. Additionally, the Singapore Trustees Association (STA) is an organization that sets professional standards in the industry, offers guidance and hosts networking events.
If you need legal assistance in regards to trusts, it's advisable to consult with a lawyer specialized in trusts law. Prepare a list of questions, make note of any assets you may be considering to place in trust, and gather any legal documents that may be relevant. A professional can guide you through the process and ensure that your legal interests are protected.
