Establishing a trust involves careful planning, defining objectives and ensuring that trustees are able to deliver the services they say they can.
Henry Lam, regional head of wealth planning (Asia-Pacific) at UBS Wealth Management said it was important for those who require a trust to think carefully about why they are setting one up and who should ensure that it is administered efficiently.
Ultimately, it is the purpose of the trust that determines how the assets are invested, and it is the responsibility of the trustee to see that the purpose is carried out. According to Mr Lam, a trust can involve a fairly simple structure - to set aside assets to pay for education and support the needs of children - or cover complex business empires, multiple beneficiaries and philanthropic issues.
'Individuals and families set up trusts for a wide variety of reasons, to save on estate taxes, provide for future generations or incapacitated family members, and pass on a family home or business, among others.
'The main consideration should be about protecting assets from personal risk, and ensuring the welfare and outcomes for your chosen beneficiaries,' Mr Lam said.
Today, people live complicated lives. Second marriages are common, families own properties in, and live in different jurisdictions, adding further complexity to trust structures.