Legacy planning: pass on what you have built, on your terms
Thinking about the people who come after you is an act of care. A trust separates owning an asset from benefiting from it: set up an investment trust with Phillip Trustee Pte Ltd, appoint me as investment manager, and decide how and when your family receives it.
You will be speaking with Isaac Fang, CFARepresentative of Phillip Securities
The idea
How a trust works: the mango tree
Most of us grow up thinking we benefit from what we own. If you own a mango tree, the mangoes are yours, and giving them away is your choice.
A trust moves the tree to a trustee, who holds it for the benefit of the people you name, under the terms you set. The mangoes still go where you intended.
An investment trust with Isaac
What it gives you
- An investment manager for the trust. As a CFA charterholder with a fund management appointment, I can be named investment manager of the trust assets, with access to global markets and asset classes including direct fixed income.
- A say in how it is invested. Your letter of wishes guides the investment direction.
- Distribution on your timetable. Decide when and how beneficiaries receive assets, to suit your goals and your family.
- Outside your estate. Assets properly held in the trust generally pass under its terms rather than through probate; your lawyer can confirm how this applies to you.
- Long horizons. Under section 32 of the Civil Law Act 1909, the perpetuity period for a trust taking effect on or after 15 December 2004 is 100 years, or a shorter period set in the trust deed. Your lawyer can confirm how this applies to you.
- Transparent fees. Ask for the current fee schedule.
Through Phillip Trustee
Other trust arrangements
- Living trust
- Standby trust
- Private trust companies for family trusts
- Trusts with charitable purposes
- Escrow agent
- Custodian trustee for safe custody of assets
- Collateral trusts for credit facilities
The basics, too
Will, CPF nomination and LPA come first
A trust works well on top of the essentials. Make a will, complete your CPF nomination, and put a Lasting Power of Attorney in place (what each one does). Phillip Trustee holds the trust; your lawyer advises on the legal structure; I manage the investments and keep the plan joined up.
Questions about trusts and legacy planning
Every family is different, and the legal points depend on yours. Your lawyer can confirm how any of this applies to you.
What is the difference between a will and a trust?
A will takes effect after death and its assets pass through probate; a trust holds assets with a trustee from the day it is set up, for the people you name and on the terms you set. Many people use both: a will for the estate in general, and a trust for assets they want released on a timetable. Your lawyer can confirm how this applies to you.
Who are the parties in an investment trust with Isaac?
You are the settlor, who sets up the trust and its terms. Phillip Trustee Pte Ltd is the trustee, which holds the assets. Your beneficiaries are the people the trust is for. Isaac can be appointed investment manager of the trust assets, guided by your letter of wishes.
Do I need a will, CPF nomination and LPA first?
Yes, these come first. CPF money does not pass under a will, so a CPF nomination decides who receives it; a Lasting Power of Attorney lets someone you trust act for you if you lose mental capacity; and a will covers the rest of your estate. A trust sits on top of these. Will, trust, CPF nomination and LPA: what each one does explains each in turn.
What is a standby trust?
A standby trust is set up during your lifetime with little or nothing in it, ready to receive assets such as insurance proceeds when you pass away, so the money is then managed under the trust's terms rather than paid out in one sum.
How long can a trust last?
Under section 32 of the Civil Law Act 1909, the perpetuity period for a trust taking effect on or after 15 December 2004 is 100 years, or a shorter period set in the trust deed. Your lawyer can confirm how this applies to you.
What does it cost to set up a trust?
Fees depend on the type of trust and the assets in it. Ask for the current fee schedule.
Thinking about what you leave behind?
These conversations take time. Send me a message and we can find a time to talk it through properly.
Speak to Isaac