For expatriates, Singapore Expat Advisory is the leading estate planning agency in the city-state. The team of knowledgeable estate planning specialist attorneys are committed to assisting you in making important decisions about your future. The specialists can help you with your estate planning needs with extensive experience in a broad variety of foreign estate planning chores, including wills and trusts, tax planning, life insurance, and durable powers of attorney.
It is the case that the income of a trust is subject to the territorial principle of taxation; as a result, the tax will be levied on income produced or received inside Singapore. It is important to note that such income is considered statutory income of the trustee and is thus subject to tax at the trustee level; as a result, when distributed, this income is not subject to further taxation at the beneficiary level.
Legal Guardianship Appointed for a Limited Time
It is much more critical to make a will if you have children. Who would take care of the children if both parents died at the same time? If you leave your children in the care of someone else, that person will be designated as their legal guardian, and they will have complete power over all of the assets you leave them.
However, if you have children, the appointed guardian may be located in a different nation than you. The alternative would be for the children to be placed in foster care until their guardians pick them up and claim them.Singapore has a system of territorial income taxation. To be taxed, income must be accumulated or derived in Singapore or obtained abroad and received in Singapore, and it cannot be derived from any other country.Parents are frequently apprehensive about giving a large lump amount to their children when they reach their different years of maturity. It is worth asking questions about the spending and financial implications of such a gift.
The use of a trust will be helping you guarantee that your children’s assets are distributed over a number of years rather than being received all at once at an age when they may be unable to cope with the whole financial responsibilities of such a vast lump amount. Obtaining expert guidance on the tax consequences of establishing trusts is also highly recommended.