Local and foreign citizens can set up trusts in Singapore with the help of our local specialists. Below, our company formation agents in Singapore explain in detail how to create a trust and how we can help you.
| Quick Facts | |
|---|---|
| Legislation | – the Trustee Act, – the Trust Companies Act, – the Business Trust Law, – the Civil Law. |
Participants in a Singapore trust | – settlor, – trustee, – beneficiary or beneficiaries. |
Types of trusts that can be established in Singapore | The following types of trusts can be created in Singapore: – private family trusts, – statutory trusts, – charitable trusts, – collective investment trusts, – real investment trusts. |
| Documents required for establishment | Trust deed. |
| Assets to be held in a trust | – real estate, – jewelry, – money, – stock, – bonds, etc. |
| Requirements to create a trust | The trust deed must contain information about the assets to be administered by the trustee and the names of the beneficiaries. It is also possible for the settlor to designate a protector to supervise the trustee. |
| Taxation of trusts | Income obtained by trusts will be taxed at trustee level or at beneficiaries level, if they are Singapore residents. |
| Recognition of foreign trusts in Singapore | Yes, foreign trusts are recognized in Singapore. |
| Possibility to create international trusts (YES/NO) | Yes. |
| Availability of foreign ownership in Singapore trusts (YES/NO) | Yes, it is possible for Singapore trusts to be 100% foreign-owned. |
| Special registration requirements (if any) | No, it is not a mandatory requirement for trusts to be registered with specific authorities. |
| Lifespan | 100 years, |
| Lifespan | – possibility to be used for asset protection, – estate planning, – tax optimization purposes, – access to tax exemptions, – access to privacy and confidentiality. |
| Trustee services availability (YES/NO) | Yes. |
| Trust creation services availability (YES/NO) | Yes, you can rely on our local agents if you want to create a trust fund in Singapore. |
Table of Contents
Can I create a trust in Singapore if I am a foreigner?
You can create a trust, no matter if you are a local or a foreign citizen, just like in the case when you set up a company in Singapore.
What are the requirements to create a trust in Singapore?
The following:
- the parties in the trust must be identified;
- the assets must also be determined and transferred for management.
What are the requirements to establish a trust in Singapore?
Before proceeding to the creation of a Singapore trust, the settlor must ensure the following:
- the settlor must express his/her intention of opening the trust and must have full mental capacity for the trust to be valid;
- he or she must also know in detail the assets to be left in trust and who the beneficiaries are;
- the trust is created after the assets are transferred to the trustee based on a declaration.
What are the steps to open a trust in Singapore?
The following:
- determine the type of trust to create: our local specialists can present the available types of trusts and their characteristics;
- name every party in the trust: the names of each party must be added in the creation document;
- prepare the establishment document: Singapore trusts are usually created based on a trust deed/agreement;
- comply with the Anti-money Laundering Regulations: the parties in the trust must submit their identification papers, and the settlor must also offer proof of the source of the assets;
- transfer the assets: the settlor must transfer the assets for management to the trustee.
We invite you to read about the creation of a Singapore trust fund in the scheme below:
What are the parties to be identified in a Singapore trust?
One of the most important particularities of trusts in Singapore and other countries is that they must have at least 3 participants, namely:
- the settlor, who is the party disposing of the creation of the trust;
- the trustee, who is the party managing the estate left in the trust;
- the beneficiaries, who will become the owners of the estate at the disposition of the settlor.
NOTE: It is also possible to appoint other parties when setting up a trust in Singapore, such as protectors. They have the role to ensure the wishes of the settlor are accommodated.
What types of trusts can I open in Singapore?
Foreign citizens can set up the following types of trusts in Singapore:
- private family trusts,
- statutory trusts,
- charitable trusts,
- collective investment trusts,
- real investment trusts.
Am I required to register a trust with any authority in Singapore?
No, the trust itself does not need any registration. However, certain assets may require registration. For example, real estate property must be recorded with the Singapore Land Department.
What types of assets can I put in a Singapore trust?
Apart from real estate, as mentioned earlier, you can also put:
- bank accounts;
- works of art;
- jewellery;
- company shares, etc.
Here is also a video on this subject:
How long does it take to establish a trust in Singapore?
The procedure can take between 1 and 2 months, depending on the type of trust and the anti-money laundering checks to be performed.
Clients interested in creating a trust in another offshore jurisdiction, for example, in the Isle of Man, should know that trusts are exempt from various taxes, such as capital gains tax, inheritance tax, gift tax, and estate tax. For more details about the advantages of opening a trust in the Isle of Man, please visit IsleoManCompanyFormation.com.
If you want to set up a trust and need assistance, do not hesitate to contact our local agents.