A standard trust is generally formed by a client who wants to ensure proper succession planning and protection of his/her assets so that they do not fall into the ‘wrong hands’.

Typically, a standard trust structure may include a fund/ investment manager to manage the assets on behalf of the client.  If the client decides to manage the assets on his/her own, a reserved power trust may be formed where any or all powers of investment or asset management functions under the trust can be decided by him/her directly.

Many High Networth Individuals hold assets under offshore companies. However, upon their demise, these shares are subject to estate administration. Hence, to avoid lengthy probate and estate administration, the shares of these offshore companies can be held under a shares distribution trust structure and transferred to their beneficiaries swiftly. These shares will essentially be held by us as trustee and the shares will be distributed to the beneficiaries according to the trust deed.

An insurance trust may be formed based on the standard trust structure with the insurance policy or policies as the underlying assets. The formation of an insurance trust will simplify the redemption process since the trustee will be the named beneficiary and they are bound by the trust to disburse the monies received under the insurance policy or policies in accordance with the trust deed and/or letter of wishes.

Click to view a visual illustration

of a Standard Trust Structure