Fiduciary Services - Family Office, Asset Management & Wealth Planning
Start planning your family's future with a trust from DBS Treasures
As someone who puts family first, you'll want to ensure that your loved ones are well provided for. That's why getting an early start in wealth succession planning is important. At DBS Treasures, our fiduciary services offer a range of wealth and succession planning solutions. With this in mind, you may want to explore the option of setting up a trust with DBS Treasures Singapore.
What is a trust?
A trust is an instrument used to preserve your assets and to facilitate the transfer of the assets to your next or future generations. Essentially, assets are transferred by you as a settlor, to the trustee as a legal owner, who in turn holds it for the use of your intended beneficiaries.
Some common uses of trusts are listed here.
Preservation of wealth
Preserving the family's assets is often the most common motive for setting up a trust. Assets accumulated over a lifetime can be protected against dissipation with a trust set up for accumulation and recurrent distribution amongst trust beneficiaries.
Certain professions are susceptible to speculative litigations whilst others may risk their entire fortune during an economic downturn, and in return, made susceptible to creditor claims. Assets transferred to a trust can provide protection against such claims and risks.
Probate can be a long-drawn affair, particularly if the estate is large, has assets around the world, or is subject to the claims of disinherited heirs. The grind, expense and delay can be avoided because assets are already held and managed by the trustee.
Centralised financial accounting
The succession planning process compels the settlor to put his or her affairs in order. It creates an opportunity for the settlor to organise his or her financial affairs in a single vehicle, thereby affording ease of management, reporting and portfolio evaluation.
Trusts can be used by a settlor to continue to support favourite charities – either by creating a separate charitable trust or including the charity as one of the beneficiaries of the family trust.
A trust is a private arrangement between the settlor and the trustee. It is not subject to registration or public disclosure of any kind. Details of the trust, its beneficiaries and assets are therefore kept confidential.
It is common for a settlor to set up a trust for special purposes – such as education of descendants or those who are unable to manage their own affairs such as infant children, aged or spendthrift persons or special needs dependents.
Income and capital gains generated by trust assets accrue to the trustee and since the trustee usually enjoys tax exemptions on trust income, taxes on income and capital gains are avoided. Trusts have many uses and benefits. Different people set up trusts for different reasons – each motivated entirely by their particular circumstances, needs, values and passions.