Estate Planning 101: Understanding Insurance Trusts in Singapore

Estate Planning 101: Understanding Insurance Trusts in Singapore

Redbrick·2017-12-24 07:05

Although wills are one of the few important estate planning tools, it alone may not be sufficient in addressing your needs or in protecting your assets and wealth. As such, the use of trusts is sometimes considered by individuals, in addition to having a will. A good understanding of the various estate planning tools that are available can help to avoid family conflicts, loss of assets or unexpected costs and taxes.

Whereas in property trusts an owner (“the Settlor”) entrusts another party (“the Trustee”) to look after his/her real estate for the benefit of the beneficiaries, life insurance trusts are designed with the ownership of an insurance policy or policies. These are generally passive structures and its benefits to be given to beneficiaries upon payout as its principal or only function. A life insurance trust generally involves the assignment of a life insurance policy, into a trust for purposes of estate planning, asset protection and succession planning.

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