The Benefits of Establishing a Living Trust in Singapore
Estate planning is oftentimes an overwhelming task, especially if you are contemplating creating a trust. It has, however, a number of benefits. This is most true when it comes to a living trust in Singapore. It is a popular estate planning tool that gives the trust holder the legal capacity to choose how your property is going to be handled.
In line with this, it also allows you to make a decision with regard to how it is going to be distributed after you pass away.
The question still stands: Do you really need to have a Singapore living trust? Well, becoming acquainted with its benefits can help you make a decision.
Great for the future
A living trust in Singapore gives you the opportunity to effectively and efficiently plan for your future. However, it should be noted that because of the fact that it is not a fixed trust, the trustee is backed by discretionary powers to distribute the assets based on irresolute circumstances.
That being said, your trustee can easily utilize the assets from the living trust to settle your son or daughter’s tuition fees or other educational expenses. Simply put, a living trust is ideal if you want to plan for your future. This is most true if you factor in the fact that circumstances change over time, and the said trust offers a sense of flexibility to prepare in advance.
Hassle-free
In a perfect world, before a person dies, he or she would have left a written will. A legal document that pretty much outlines how he or she wants his or her estate to be distributed after death. But before the estate executor can execute the will, he or she would need to secure some complimentary legal documents or undergo procedures which may include a probate. It is a court-supervised legal process where the estate is going to be distributed based on one’s last will and testament.
This can be lengthy as well as costly. For the record, it can take about two to six months for the necessary paperwork to be approved and released. This is not the case with a Singapore living trust since it allows family members to bypass such requirements. That said, it is best to opt for the said trust since it offers immediate distribution of assets in the event of death.
Control and flexibility
A living trust in Singapore gives better control over how your assets are going to be distributed to your beneficiaries. In the said document, you can extensively outline specific terms. With this in mind, you can rest assured that your property is going to be handled just the way you want in the event that you unfortunately pass away.
The same level of flexibility applies to revocable living trusts (RLT). Modifying your RLT is simple if your estate planning aims, life circumstances, or even the people in your life change. An irrevocable trust can be amended as well, albeit the procedure is more involved. If you have concerns or questions concerning your irrevocable trust, it is important to consult with an attorney experienced in estate planning.
Protect the privacy of loved ones
In a probate procedure, details about your estate are released to the public. The long list includes the assets that you own, their market value, and your beneficiaries. Due to the fact that assets do not have to undergo the probate process, private information remain private.
Summing up
As you can see, a living trust in Singapore offers a number of benefits. If you decide to establish one, you can do so in an instant. After answering a couple of simple questions, you can incorporate the said trust in your estate plan and enjoy peace of mind.