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Trust Settlement Agreement Template for Singapore

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Key Requirements PROMPT example:

Trust Settlement Agreement

"Need a Trust Settlement Agreement for a family business succession plan, where company shares will be held in trust for my tHRee children, with my brother serving as trustee and distributions starting from January 2025."

Document background
A Trust Settlement Agreement is a crucial document used when establishing a formal trust structure in Singapore. This agreement is particularly relevant when individuals or entities wish to create a legal arrangement for asset protection, succession planning, or wealth management. The document, governed by Singapore's robust trust laws, details the transfer of assets, appointment of trustees, beneficiary rights, and trust administration rules. Trust Settlement Agreements are commonly used for family wealth planning, charitable purposes, or business succession, providing a flexible yet secure framework for asset management and distribution.
Suggested Sections

1. Parties: Identifies the settlor, trustee(s), and beneficiaries

2. Background: Sets out the context and purpose of the trust settlement

3. Definitions: Defines key terms used tHRoughout the agreement

4. Trust Declaration: Formal declaration of trust and settlement of assets

5. Trust Powers: Powers granted to trustees in managing the trust

6. Beneficiary Rights: Rights and entitlements of beneficiaries

7. Trust Administration: Rules for managing and administering the trust

8. Trustee Duties: Obligations and responsibilities of trustees

Optional Sections

1. Protector Provisions: Powers and duties of trust protector - include when a trust protector is appointed

2. Investment Guidelines: Specific investment rules and restrictions - include for trusts with substantial investment portfolios

3. Foreign Element Provisions: Provisions dealing with international aspects - include for trusts with cross-border elements

4. Variation Powers: Powers to modify trust terms - include when flexibility in trust terms is desired

Suggested Schedules

1. Schedule of Initial Trust Assets: Detailed list of assets initially settled into the trust

2. Schedule of Beneficiaries: Complete list of beneficiaries and their respective interests

3. Investment Policy Statement: Detailed investment guidelines and objectives

4. Trustee Remuneration Schedule: Details of trustee fees and compensation

5. Letter of Wishes: Non-binding guidance from settlor to trustees

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Industries

Trustees Act (Chapter 337): Primary legislation governing appointment, duties, and powers of trustees, including statutory requirements for trust administration and investment powers

Trust Companies Act (Chapter 336): Regulates licensed trust companies and their operations in Singapore, particularly relevant when professional trustee companies are involved in trust administration

Civil Law Act (Chapter 43): Contains fundamental provisions affecting trust creation and validity, including formalities required for trust establishment

Income Tax Act: Governs tax implications for trust income and the tax treatment of distributions to beneficiaries

Stamp Duties Act: Covers stamp duty implications and requirements for property transfers into and out of trusts

Mental Capacity Act: Relevant for assessing trustees' capacity and beneficiary considerations in trust arrangements

Probate and Administration Act: Addresses the interaction between trusts and estate administration in Singapore

Status of Children Act: Pertains to beneficiary definitions and rights, particularly important for trusts involving children or family arrangements

Common Law Principles: Equity and trust principles from common law that supplement statutory provisions in Singapore trust law

Anti-Money Laundering Regulations: Compliance requirements for trust arrangements to prevent money laundering and ensure legitimate trust purposes

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