Private Wealth
A private trust is created to benefit one or more private individuals or non-charitable entities, as opposed to a charitable trust which has charitable beneficiaries. The distinction between private trusts and charitable trusts, while obvious, is necessary because there are certain requirements and conditions which apply to one but not the other.
The general purpose of a private trust is to manage and preserve property, typically money, for the benefit of one or more persons or entities, such as for the maintenance, education and benefit of children and grandchildren.
Benefits of trusts
- Trust assets and monies are properly invested
- The Trustee manages and administers the trust assets independently
- Trust funds are utilised for intended Beneficiaries
- The terms of distribution are decided by the Settlor (the person who creates and funds the Trust)
An Insurance Trust is particularly beneficial for key individuals, such as parents with young children. By assigning a life insurance policy to Pacific Trustees Singapore Ltd., an Insurance Trust can be easily established for the benefit of the settlor’s spouse and/or children, who are named as beneficiaries in the policy.
This ensures that the policy proceeds are not part of the insured person’s estate, meaning there is no need for a Grant of Probate or Letter of Administration to access the funds after the insured person’s death.