In Singapore, a trust can be set up as an Inter Vivos or testamentary trustee. An Inter Vivos is where the settlor transfers assets and income to the trustees during his lifetime.
A testamentary trustee holds on to those same assets for beneficiaries who are yet unborn or living at the death of the first beneficiary. Thus, asset protection is a large motivation for Setting up a trust in Singapore.
– To set up trusts in Singapore, settlors need to appoint trustees
– Trustees must be natural persons and not corporations or companies. If they are not residents in Singapore for tax purposes, the trustee needs to appoint a local representative who can act on behalf of the non-resident trustee.
– Settlors must also appoint a Protector who will have oversight of the Trust.
– The Protector can change the trustee, remove the trustee if they commit any breach of Trust, and make changes to beneficiaries.
There are other requirements for setting up trusts in Singapore, including appointing an Authorised Person who must be a professional with expertise in this type of asset protection arrangement. The Authorised Person can also recommend operational changes to the trustee.
– Settlors should review their trust deed regularly and make changes as needed. This can be done by consulting with a professional specializing in trusts or by going through an Authorised Person appointed for this purpose.
It usually takes between six to eight weeks to set up a trust in Singapore.