Trust 101
A trust is a legal concept designed to hold and safekeep assets or property for the benefit of a person, group or organisation.
Trusts are created for many reasons. One main reason is to provide additional protection for the assets of the settlor to ensure that those assets are managed and distributed according to the settlor’s wishes if the settlor is incapacitated or no longer alive. By appointing a professional trustee such as a licensed trust company, a settlor can have peace of mind that their wishes as to how and when their assets will be passed on to their next generations will be followed.
Forming a trust involves three parties: settlor, trustee, and one or more beneficiaries. The settlor is the person who is creating the trust and giving rights to hold assets to the trustee. The trustee is an entrusted third party that manages the trust in the best interest of the beneficiaries.
A common concern that many clients have is what happens to their offspring after the death of a parent or both parents. For example, a sudden death may leave a survivor who may remarry, which may leave family assets vulnerable at the hands of the second spouse, and potentially deprive the children of the first marriage of their inheritance.
Often clients also cite asset protection as a major concern when they contemplate the marriages of their children. The possibility of divorce threatening family wealth is naturally of concern to the older generation.
With a trust, you as a settlor can have more peace of mind over how your assets are managed and allocated after your passing. Every trust is bespoke, crafted according to the wishes of the settlor. The settlor is able to specify how his or her estate will be dispersed to beneficiaries in detail and with clarity.
It comes down to the question of do you trust your next of kin to look after their inheritance responsibly. For example, if one of your intended beneficiaries cannot be depended upon to make sound financial decisions, then through your professional trustee, small sums can be disbursed as installments instead of one lump sum and you as a settlor have the ability to specify how the funds could be spent.
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Regulated by the Monetary Authority of Singapore (MAS), WATIGA TRUST holds a Trust Business License and is also an Approved Trustee for Collective Investment Schemes (CIS). WATIGA TRUST is a member of the Singapore Trustees Association (STA) and the Institute of Banking and Finance Singapore (IBF).
In addition to private trusts, WATIGA TRUST administers many corporate trusts for private and listed companies, including investment trusts and employee share ownership trusts, and acts as trustee of charitable trusts for philanthropic purposes.
WATIGA TRUST LTD
138 Arab Street, Singapore 199826
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