Decades ago, the key question one would ask when setting up a trust was how much money you had, as trusts were considered the realm of the very wealthy. Today, with the increase of wealth in Asia, and a mindset geared towards planning for the younger generation, trusts have become popular.
Trusts provide flexibility in meeting the needs of individual families and their desire to protect and preserve wealth over a long period of time.
Trusts provide flexibility in meeting the needs of individual families
This is useful if your children are minors, as it will be some time before they are able to handle sizeable amounts of money on their own.
It is worth giving careful consideration to the choice of trustee, and the type of trust you wish to create, when planning to set up a trust. Trustees can be individual or corporate.
For an individual trustee, he or she can be a family member or friend. You should consider:
a) How long you wish him to hold your assets as trustee for your children.