PreceptsGroup International has seen a significant increase in people interested in setting up trusts over the years. From around 20 trusts set up annually in 2008, about 120 to 140 trusts are established annually now, a six-fold increase.
Responding to a Straits Times article dated 28 October 2022 and titled “More parents interested in setting up trusts for their children”, PreceptsGroup International chief executive officer, Mr Lee Chiwi, affirmed the growth in the establishment of trusts in Singapore and a broadening awareness of their value to safeguard assets. “Quick wealth in the hands of the beneficiary could dissipate in a short while,” said Mr Lee.
Trusts help to distribute wealth more systematically and efficiently, for the long term. A trust is a legal arrangement that allows an individual to place his assets such that an appointed trustee can managed them on behalf of the beneficiaries. Trusts allow wealth to be distributed to beneficiaries over a longer period of time as opposed to handing over assets outright soon after the death of the individual who set up the trust.
Meanwhile, in the wake of the Covid-19 pandemic, Mr Lee added that PreceptGroup is also sensing that, with the rising cost of living as well as the negative experiences of the Covid-19 pandemic, people are more conscious of vulnerable times ahead for their families. “They want to provide for them and make sure there are funds for that rainy day,” he added.