Singapore has all the requirements to become a preferred jurisdiction for those seeking to set up trusts in Southeastern Asia. Among these are an impressive number of financial companies which operate in Singapore and professionals who offer specialized accounting and legal consultancy. The base of establishing trusts in the city-state is the Trust Law which was enabled in 2005 and renewed a year later. It is also important to know that Singapore enacted the Trustees Act in order to enforce foreign investors’ confidence in opening trusts here.
Our Singapore lawyers can offer more information on the Trust Law and the Trustees Act.
The Trust Law in Singapore is made up of several parts which provide for how to set up a trust, the powers and the rights of those setting up the trust, also known as settlors, and the obligations of the trustees. The settlors are also required to appoint the beneficiaries of the trust. The Trust Act also establishes that foreign or local investors can set up trust companies in Singapore provided that these are licensed by the Monetary Authority of the city-state. Foreign enterprisers seeking to open a licensed trust company in the Republic can rely of the services offered by a law firm in Singapore.
According to the Singapore Trust Act, a trust is not a legal entity, but an arrangement between the settlors and the trustees. The arrangement means signing a deed before a Singapore notary. The trustee must manage the assets offered by the settlors to the benefit of the third party or parties for which the trust was set up.
The Trustees Act was enabled in 1967 and revised in 2005 when the first Trust Law was enforced. Since then, the law was incorporated in the Singapore Civil Law under Chapter 337. The Singapore Trustees Act provides for the investments, or better said, the assets that can be used in the trust and how the trustees are required to exercise their duty of care. The Singapore Trustees Law also establishes that the settlors may appoint representatives who will speak on their behalf to the trustees. In other words, the former will legally represent the settlor in their relation with the trustees.
For complete information about the trust and trustees laws, please contact our attorneys in Singapore who can also assist you in setting trusts in the city-state.
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