In a parent and child relationship, trusts are a useful tool as it shifts the legal right to the assets from the parent to the trust. This would result in the assets being protected from creditors, bankruptcy and asset disputes. The design of a trust also avoids forced inheritances, instead the assets will be distributed according to the parent’s will and in Singapore, some taxes may not apply to the distribution of trusts.

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Trusts can be created by will, deed or declaration and must be done in writing. Assets held within a trust must be owned by the settlor and may include cash, land, shares, businesses, jewelry and artwork. The life of a trust can be determined by the settlor and often the duration of a trust is dependent on the asset it holds and the beneficiaries it serves. Trusts may cease to exist when all assets are distributed or the beneficiaries consent to the winding up of a trust. In Singapore, trusts can exist for a maximum of 100 years.