{"id":1229,"date":"2025-10-13T09:26:21","date_gmt":"2025-10-13T09:26:21","guid":{"rendered":"https:\/\/iqeq.com\/sg\/?p=1229"},"modified":"2025-10-20T08:40:36","modified_gmt":"2025-10-20T08:40:36","slug":"trusts-in-asia-supporting-succession-continuity-and-legacy-planning","status":"publish","type":"post","link":"https:\/\/iqeq.com\/sg\/insights\/trusts-in-asia-supporting-succession-continuity-and-legacy-planning\/","title":{"rendered":"Trusts in Asia: supporting succession, continuity and legacy planning\u00a0"},"content":{"rendered":"
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By James Ho, Business Development Director (Private Wealth), Greater China<\/span><\/i>\u00a0<\/span><\/p>\n

Across Asia today, there\u2019s a growing interest in structured approaches to intergenerational wealth planning and succession. It\u2019s easy to see why \u2013 around <\/span>US$6.1 trillion in wealth<\/span><\/a> is expected to transfer across generations in Asia by 2030, meaning that the region is on the cusp of the largest and most complex wealth transfer in history.\u00a0<\/span>\u00a0<\/span><\/p>\n

Amid this increased interest in wealth transition strategies, trusts are coming into focus. Not only are these structures effective tools for wealth preservation, but they can also play a role in continuity, family harmony, and legacy planning, helping families navigate the challenges associated with managing wealth across generations and jurisdictions.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

The practical advantages of trusts<\/h2>\n

More sophisticated than wills (which have their limitations), <\/span>trusts offer a range of practical advantages<\/span><\/a> when it comes to intergenerational wealth planning. For a start, they can ensure that <\/span>assets are not only transferred to future generations but also protected, managed and grown<\/span><\/b>. With these structures, assets can be ring-fenced so they are sheltered from creditors and legal claims. This is particularly valuable for business owners and those in high-risk professions. Meanwhile, they can be set up to ensure that long-term capital remains invested for future growth. For example, a trust could stipulate that income from a real estate portfolio is distributed to beneficiaries, but the property itself is held in the trust in perpetuity, ensuring that there is wealth for future generations.<\/span>\u00a0<\/span><\/p>\n

Trusts also offer a <\/span>high level of clarity, supporting family governance<\/span><\/b>. This is due to the fact that they establish a detailed, legally binding framework for the management and distribution of assets. With this type of structure, one can include very specific instructions for how assets should be distributed. For example, you could specify that beneficiaries receive staggered payments at different ages, or set conditions for distributions, such as requiring a beneficiary to graduate from university.\u00a0<\/span>\u00a0<\/span><\/p>\n

Additionally, they can play a <\/span>key role in philanthropy<\/span><\/b>. Via a trust, a family can formalise charitable giving, aligning their wealth transfer with family values. Note that today, family offices in Asia are increasingly integrating philanthropy into their legacy strategies. According to BNP Paribas\u2019 <\/span>Asia-Pacific Family Office Report 2024<\/span><\/a>, 74% of APAC family offices now engage in philanthropy \u2013 the highest rate globally. It\u2019s worth pointing out that Singapore recently introduced the Philanthropy Tax Incentive Scheme (PTIS) to encourage regional giving, particularly from single family offices (SFOs). Designed to help establish Singapore as a hub for global and regional philanthropy, it allows approved donors to claim a 100% tax deduction for eligible overseas donations.\u00a0<\/span>\u00a0<\/span><\/p>\n

Emotional resilience<\/h2>\n

There are more to trusts than just practical advantages though; they also offer emotional benefits. Peace of mind is one such benefit. Trusts can ensure that <\/span>complicated family situations are handled with care<\/span><\/b> and that your wishes as settlor are carried out exactly as you intended. This is invaluable in situations where you might be concerned about beneficiaries’ financial maturity or the complexities of a blended family. Trusts can also help to ensure assets are kept within the family for a specified period of time and not sold or otherwise let go of. This can prevent \u2018sideways disinheritance\u2019 \u2013 where assets intended for your children are accidentally passed to a third party and out of the family lineage.<\/span>\u00a0<\/span><\/p>\n

Another benefit here is that trusts can <\/span>reduce the risk of family conflict<\/span><\/b>. This is particularly relevant in Asia, where succession planning is often shaped by values of harmony, respect and collective decision-making. One thing that can help on this front is the appointment of a <\/span>professional trustee<\/span><\/a>. This type of trustee can make difficult decisions without the emotional bias that a family member might have, helping to prevent family disputes and ensure the trust’s terms are followed to the letter.\u00a0<\/span>\u00a0<\/span><\/p>\n

Additionally, trusts can be used to help <\/span>preserve legacy values<\/span><\/b>, as they allow a family to embed their core beliefs and principles directly into the legal framework that governs their wealth. For example, a trust could be set up to promote education, support entrepreneurship, foster financial responsibility or encourage philanthropy. Ultimately, a trust allows you to create a personalised plan that ensures your wealth is distributed to the right people, under the right conditions, long after you are no longer able to manage it yourself.<\/span>\u00a0<\/span><\/p>\n

The different types of trusts for wealth transfer<\/h2>\n

In recent decades, the trust landscape across Asia has evolved significantly, with many jurisdictions modernising their trust laws to make them more attractive and user-friendly. As a result, there\u2019s a range of trust structures available today, including:\u00a0<\/span>\u00a0<\/span><\/p>\n