Family Governance and Legacy Advisor
Singapore Family Office Setup Process
Why is there a family trust involved in an offshore family office structure?
Role of family trusts:
- Succession planning
- Waiver of the probate process
- Trust assets can be distributed to beneficiaries in stages, rather than all at once
- If the settlor becomes incapacitated, the trustee can pay for medical expenses, living expenses, etc. from the trust assets.
- Assets are protected against third-party claims in the event of divorce/separation. Assets can also be safeguarded.
The difference between a trust and a will
| Trust | Will |
| A trust is a confidential arrangement | A will is a public document |
| Confidentiality of distribution plans | Disclosure of distribution plans |
| Dispense with probate | Go through probate |
| Protecting assets | Vulnerable to challenges |
| Flexible asset allocation in the best interests of the trust’s beneficiaries | All established and inflexible |