A Will Trust is the most basic and affordable type of Trust. 

It is set up only on the testator’s death since the Trust instructions are found in a Will. This means that you can rewrite your Will Trust whenever your family circumstances change.

Be prepared to pay around $1,000.

It is absolutely affordable!

The Will Trust is a basic trust that many families can consider for a start.

You may have heard that Trusts can cost $10,000 to set up; these are likely to be Living Trusts rather than Will Trusts. Living Trusts are Trusts that are set up during your lifetime rather than after your lifetime as in the case of a Will Trust.

You can specify that the remaining funds go to another surviving beneficiary or if there are no human beneficiaries remaining, the funds remaining can benefit an entity such as a charity. It’s up to you.

Your Will Trust never expires, but major life events or a change in estate planning goals can necessitate changes.

For example, if you have a new baby or if you are divorcing your spouse, then it’s definitely time to update your Will Trust.

Almost any asset of material value can be put into a Trust, including:

• shares
• property
• cash
• insurance policies
• fine art and jewellery

Even yachts and aeroplanes can be placed in Trust. It depends on the trustee’s expertise and willingness to manage the asset.

In Singapore, Trusts can last for up to 100 years. However, the terms of the trust will usually allow the trust to end earlier.

For example, if and when a beneficiary reaches a certain age or when the funds dip below a certain amount.

If you name an individual as trustee in the Will, that person has no legal obligation to accept the appointment in the future.

However, if you appoint a professional trustee such as a licensed trust company, it will almost always act in the future.

The reason is that the professional trustee charges a nominal fee for being appointed in the Will. The fee professionally obligates the trustee to keep its word.

Secondly, the trustee is happy to act because it earns fees when it does.

Compared with a Will Trust, a Living Trust is set up during an individual’s lifetime (rather than after). While they are more costly to set up, they can accommodate a far wider variety of planning situations.

You may need one if you:

1. Have $5M or more in wealth
2. Have more than one home
3. Have assets in more than one country
4. Want your CPF distributed over time
5. Run a business
6. Have a person with special needs in your family
7. Need flexibility to amend your wishes
8. Need asset protection
9. Need greater confidentiality
10. Worry about divorce

If one or a few of the items apply to you, you may need to consider a Living Trust for your family.