Truly secure your wealth™

A Trust is a legal arrangement whereby the owner (the Settlor) entrusts another party (the Trustee) to take care of his/her assets for the benefit of the beneficiaries.

A Trustee is a fiduciary with the legal responsibility to manage/hold the Trust assets and adhere to the instructions in the Trust deed.

Why do we need a Trust?

• A Trust is an excellent solution for managing various aspects of wealth, including accumulation, protection, preservation, and distribution.

It can be used for:

• succession planning (transfer of assets across generations)
• avoidance of probate formalities (complicated and costly court processes)
• confidentiality (closed to public scrutiny)
• flexibility (minimum documentation formality in the use of Letters of Wishes)
• international recognition and enforcement (the common law Trust is known throughout the world).

The Settlor can appoint anybody he/she desires as a beneficiary, which also includes himself/herself.                                                                                

Clients from jurisdictions that enforce wealth transfer tax, and/or enforce force heirship rules, will be required to obtain tax/legal advice prior to setting up the Trust. ​                                              

Generally, clients from jurisdictions flagged as high-risk and monitored jurisdictions will be subjected to enhanced due diligence. We conduct thorough checks before onboarding any client.

All Trusts, regardless of type, will be subjected to the necessary anti-money laundering regulations and due diligence checks.                                                                                     

A revocable trust is one where the Settlor reserves a power or right to amend or terminate the Trust. Because the Settlor retains such a level of control over a revocable trust, the assets he or she put into it are not shielded from creditors the way they are in an irrevocable trust.

An irrevocable trust is a Trust where the Settlor does not have such power and flexibility. The terms of an irrevocable trust are set in stone. Except under exceedingly rare circumstances, no changes may be made to an irrevocable trust.

An irrevocable Trust is often established to protect assets from potential creditors. Once the Settlor places assets in the irrevocable Trust, they cannot be reclaimed by the Settlor. Upon the Settlor’s death, these assets are no longer part of the Settlor’s estate.

Assets placed in this type of Trust are protected from creditors, provided that the irrevocable Trust was established five years before any bankruptcy, with the exact duration depending on the specific circumstances.

Trust Companies are licensed and supervised by the Monetary Authority of Singapore (MAS) and bound by the Trust Companies Act.

There are provisions on the handling of Trust funds such as the segregation of Trust company’s assets from the Trust assets which they are administering.

If Precepts Trustee Ltd. ceases its operation, another Trust company will replace and be appointed as the new trustee.

The Settlor’s Trust fund will not be affected as it is kept separate from the assets of the Trust company.

There are regulations in place that require the careful handling of Trust funds by its officers. A set of guidelines must be adhered to for the appointment of the Trust officers. This requires them to be persons of sound financial soundness with proper track records and conduct themselves with honesty and integrity.

In addition, all employees are bound by the Trust company’s compliance manual in the execution of their duties. The Trust company is also subjected to stringent audit requirements, and therefore the Trust company’s practices in relation to the handling of trust funds are also reviewed periodically. Any weakness in the operations would be identified, and the Trust company would need to rectify and bolster the controls.

The audit reports of Precepts Trustee will also be submitted to MAS. Trust Companies need to maintain a minimum Net Asset Value and have relevant Professional Indemnity Insurance in place.

Precepts Trustee was set up in September 2008. The nature of the business has excellent longevity with more than 11,000 executorship appointments for future administration in the next decades.

Furthermore, the strategic shareholders of the PreceptsGroup include British & Malayan Holdings which is listed on the Singapore Exchange (SGX) with the oldest independent licensed Trust company, British & Malayan Trustees Limited as its subsidiary.

There are mechanisms to prevent any potential abuses. Any financial transactions would require the signature of at least two authorised signatories.

There are strict requirements for banking access and payments. The Trust officer initiates the process, which may require approval from the compliance officer, especially for larger transactions.

Due to involvement of multiple personnel for approval, it is unlikely for any mischief to happen. All persons in the Trust company are aware of the severe penalties under the Trust Companies Act for any fraudulent acts.