Do you want to set up a trust in Singapore?
Setting up a trust in Singapore is vital. Tax relief strategies are available when setting up trusts for parents and grandparents. A few years ago, the government of Singapore passed laws that made it possible to claim tax relief on funds placed into trusts for family members with disabilities or who are under 21 years of age.
These trusts are often referred to as Central Management and Control Trusts (CMC) due to the centralized nature of their administration. However, CMC is not a trust, but it holds assets on behalf of another person or persons, known as trustees. As an example, if you have two children who are minors, your will can say that you want to set up a trust for your children.
The trustee is the person who will hold and administer assets on behalf of another, usually referred to as beneficiaries or objects of the Trust. Trustees are given different rights by law depending on where the CMC was created. One of these legal rights includes how much money can be paid out each year to the beneficiaries.
Trustees are also responsible for reporting on how much money is in Trust, who it belongs to, and any income earned by that money. They must provide this information each year when paying out funds from the Trust. If the trustees do not meet their responsibilities (for example, if they fail to file tax returns or report properly ), they are personally responsible for any tax due.