I. Introduction

In the intricate landscape of global finance and wealth management, trusts have emerged as a pivotal instrument for asset protection, succession planning, and philanthropic endeavors. Singapore, with its robust legal framework and reputation as a premier financial hub, has positioned itself as a jurisdiction of choice for trust establishment and administration. This comprehensive analysis delves into the multifaceted realm of trust law in Singapore, offering an in-depth exploration of its concepts, mechanisms, rules, and tax implications.

The concept of trust, rooted in common law traditions, has been adeptly integrated into Singapore’s legal system, evolving to meet the sophisticated needs of modern wealth management while maintaining the fundamental principles that have made trusts a cornerstone of fiduciary relationships for centuries. As we navigate through the intricacies of Singapore trust law, we will uncover the legal foundations that underpin these versatile structures, examine the roles and responsibilities of various parties involved, and analyze the regulatory landscape that governs their operation.

Our journey through Singapore’s trust law will encompass several key areas:

II. Historical Context and Legal Foundations

III. Key Concepts and Types of Trusts in Singapore

IV. Establishment and Administration of Trusts

V. Rights and Duties of Trustees, Settlors, and Beneficiaries

VI. Regulatory Framework and Compliance Requirements

VII. Tax Regime and Implications for Trusts in Singapore

VIII. International Aspects and Cross-Border Considerations

IX. Recent Developments and Future Trends

X. Conclusion

This analysis aims to provide a comprehensive understanding of trusts under Singapore law, serving as a valuable resource for legal professionals, financial advisors, and individuals seeking to navigate the complexities of trust structures in this dynamic jurisdiction. By examining both the theoretical underpinnings and practical applications of trust law, we endeavor to offer insights that bridge the gap between legal theory and real-world implementation, reflecting the global perspective and forward-thinking approach that defines Orbis Law Firm’s commitment to excellence in legal services.

II. Historical Context and Legal Foundations

The evolution of trust law in Singapore is inextricably linked to the nation’s colonial history and its subsequent development as a global financial center. Understanding this historical context is crucial for appreciating the nuances of Singapore’s current trust law framework.

A. Colonial Roots and Common Law Influence

Singapore’s legal system, including its trust law, has its roots in English common law, a legacy of British colonial rule[1]. The concept of trusts, originating from the English Court of Chancery, was introduced to Singapore during this period. This historical connection has profoundly shaped the fundamental principles and structures of trust law in Singapore.

1. Reception of English Trust Law

The formal reception of English trust law in Singapore can be traced back to the Second Charter of Justice in 1826, which established the Court of Judicature of Prince of Wales’ Island, Singapore, and Malacca[2]. This charter effectively introduced English common law, equity, and statutes to the Straits Settlements, including Singapore.

2. Post-Independence Development

Following Singapore’s independence in 1965, the nation retained the common law system while developing its own body of case law and statutory provisions. The Application of English Law Act (Cap. 7A) of 1993 clarified the extent to which English common law and equity, including principles of trust law, continue to apply in Singapore[3].

B. Statutory Framework

While rooted in common law, Singapore’s trust law has been significantly shaped by statutory interventions designed to modernize and clarify legal principles, as well as to enhance Singapore’s competitiveness as a trust jurisdiction.

1. Trustee Act (Cap. 337)

The Trustee Act, originally enacted in 1967 and subsequently revised, serves as the primary legislation governing trusts in Singapore[4]. It codifies many common law principles and provides statutory powers and duties for trustees, offering a comprehensive framework for trust administration.

2. Civil Law Act (Cap. 43)

The Civil Law Act contains provisions relevant to trusts, particularly Section 7, which addresses the creation of interests in property and the validity of certain dispositions[5].

3. Trust Companies Act (Cap. 336)

Enacted in 2005, this Act regulates the trust company industry in Singapore, ensuring high standards of professionalism and integrity in trust services[6].

C. Judicial Development

Singapore’s courts have played a crucial role in interpreting and applying trust law principles, often drawing on English precedents while developing distinctly Singaporean approaches to various issues.

1. Adherence to Common Law Principles

Singapore courts have consistently reaffirmed the applicability of fundamental common law trust principles, such as the three certainties required for the creation of a valid trust: certainty of intention, subject matter, and objects[7].

2. Adaptation to Local Context

While respecting common law traditions, Singapore courts have demonstrated willingness to adapt trust law principles to local circumstances and evolving commercial realities. This judicial approach has contributed to the development of a robust and flexible trust law framework[8].

D. International Influences

As a global financial center, Singapore’s trust law has also been influenced by international developments and the need to remain competitive in the global trust services market.

1. Recognition of Foreign Trusts

Singapore law recognizes foreign trusts, subject to certain conditions, reflecting the jurisdiction’s openness to international wealth management structures[9].

2. Adoption of International Best Practices

Singapore has incorporated various international best practices in trust regulation and administration, aligning its legal framework with global standards while maintaining its unique strengths[10].

The historical context and legal foundations of trust law in Singapore provide a solid base for understanding the current landscape. This rich tapestry of common law heritage, statutory innovation, and judicial development has created a sophisticated and flexible trust law regime that caters to both domestic and international needs. As we delve deeper into the specific concepts, mechanisms, and rules governing trusts in Singapore, this historical perspective will inform our analysis and highlight the unique features of Singapore’s trust law framework.

III. Key Concepts and Types of Trusts in Singapore

A comprehensive understanding of trust law in Singapore necessitates a thorough examination of its fundamental concepts and the various types of trusts recognized under the jurisdiction. This section elucidates the core principles that underpin trust structures and explores the diverse forms of trusts available to meet different legal and financial objectives.

A. Fundamental Concepts of Trusts

1. Definition and Nature of Trusts

At its essence, a trust is a fiduciary relationship in which one party, known as the trustee, holds and manages property or assets for the benefit of another party, the beneficiary[11]. This arrangement is created by a settlor, who transfers the assets to the trustee. The unique nature of trusts lies in the separation of legal and beneficial ownership, a concept firmly established in Singapore law[12].

2. The Three Certainties

For a trust to be valid under Singapore law, it must satisfy the three certainties, a doctrine derived from English common law:

a) Certainty of Intention: There must be a clear intention to create a trust[13].

b) Certainty of Subject Matter: The trust property must be clearly identified[14].

c) Certainty of Objects: The beneficiaries or the class of beneficiaries must be ascertainable[15].

3. Fiduciary Duties

Trustees in Singapore are bound by fiduciary duties, which include the duty of loyalty, the duty to act in good faith, and the duty to avoid conflicts of interest[16]. These duties form the cornerstone of trust administration and are rigorously enforced by Singapore courts.

B. Types of Trusts in Singapore

Singapore law recognizes various types of trusts, each serving distinct purposes and subject to specific legal considerations.

1. Express Trusts

Express trusts are intentionally created by the settlor, either through a written instrument or oral declaration. They are the most common form of trusts in Singapore and can be further categorized into:

a) Fixed Trusts: Where the interests of the beneficiaries are specifically defined[17].

b) Discretionary Trusts: Where trustees have discretion in distributing trust assets among beneficiaries[18].

2. Resulting Trusts

Resulting trusts arise by operation of law when property is transferred to someone who has not provided the full consideration for it. Singapore courts have recognized two types of resulting trusts:

a) Presumed Resulting Trusts: Arising from voluntary transfers or purchases in another’s name[19].

b) Automatic Resulting Trusts: Occurring when an express trust fails or does not exhaust the entire beneficial interest[20].

3. Constructive Trusts

Constructive trusts are imposed by law to prevent unconscionable conduct. They serve as a remedial device in various situations, including:

a) Breach of fiduciary duty[21].

b) Knowing receipt of trust property[22].

c) Dishonest assistance in a breach of trust[23].

4. Charitable Trusts

Charitable trusts are established for purposes beneficial to the public. Singapore law recognizes four main categories of charitable purposes:

a) Relief of poverty

b) Advancement of education

c) Advancement of religion

d) Other purposes beneficial to the community[24]

Charitable trusts enjoy certain legal privileges, including exemption from the rule against perpetuities[25].

5. Purpose Trusts

Singapore law generally does not recognize non-charitable purpose trusts due to the lack of ascertainable beneficiaries. However, certain exceptions exist, such as trusts for the maintenance of animals or graves[26].

6. Commercial Trusts

Commercial trusts have gained prominence in Singapore’s financial landscape. These include:

a) Unit Trusts: Collective investment schemes structured as trusts[27].

b) Real Estate Investment Trusts (REITs): Trusts that invest in income-generating real estate[28].

c) Business Trusts: Trusts used for business purposes, regulated under the Business Trusts Act[29].

7. Foreign Trusts

Singapore law recognizes foreign trusts, subject to certain conditions. The treatment of foreign trusts is governed by conflict of law rules and specific statutory provisions[30].

8. Statutory Trusts

Certain trusts are created or recognized by statute, such as:

a) Implied trusts under the Civil Law Act[31].

b) Trusts arising from intestacy under the Intestate Succession Act[32].

Understanding these key concepts and types of trusts is crucial for navigating the complex landscape of trust law in Singapore. Each type of trust serves specific purposes and is subject to distinct legal rules and considerations. As we proceed to examine the establishment, administration, and regulatory aspects of trusts in Singapore, this foundational knowledge will provide essential context for a deeper analysis of the practical and legal implications of trust structures in this jurisdiction.

IV. Establishment and Administration of Trusts

The process of establishing and administering trusts in Singapore involves a series of legal steps and ongoing responsibilities. This section examines the key aspects of trust creation, the roles of various parties involved, and the administrative duties required to maintain a trust in compliance with Singapore law.

A. Trust Creation

1. Legal Requirements

To create a valid trust in Singapore, several legal requirements must be met:

a) Capacity: The settlor must have the legal capacity to create a trust[33].

b) Three Certainties: As discussed earlier, the trust must satisfy the certainties of intention, subject matter, and objects[34].

c) Formalities: While oral trusts are recognized, written trust deeds are more common and provide greater clarity[35].

2. Trust Deed

The trust deed is a crucial document that outlines the terms and conditions of the trust. Key elements typically include:

a) Identification of parties (settlor, trustees, beneficiaries)

b) Description of trust property

c) Powers and duties of trustees

d) Distribution provisions

e) Trust duration and termination conditions[36]

3. Transfer of Assets

The settlor must effectively transfer the legal title of the trust assets to the trustees. This transfer is essential for the trust to take effect[37].

B. Parties Involved in Trust Structures

1. Settlor

The settlor is the creator of the trust and must have the legal capacity to transfer property. Key considerations for settlors include:

a) Retention of powers: The extent of control retained by the settlor can impact the trust’s validity and tax treatment[38].

b) Letter of wishes: A non-binding document providing guidance to trustees[39].

2. Trustees

Trustees hold legal title to the trust property and are responsible for its management. They can be individuals or corporate entities. Key aspects include:

a) Appointment and removal procedures

b) Number of trustees required

c) Decision-making processes for multiple trustees[40]

3. Beneficiaries

Beneficiaries are the individuals or entities entitled to benefit from the trust. Considerations include:

a) Fixed vs. discretionary interests

b) Vested vs. contingent interests

c) Powers of appointment to add or remove beneficiaries[41]

4. Protectors

Some trusts include a protector, who oversees the trustees’ actions and may have specific powers, such as:

a) Veto power over certain trustee decisions

b) Power to appoint or remove trustees

c) Power to add or remove beneficiaries[42]

C. Trust Administration

1. Trustee Duties

Trustees in Singapore have various statutory and fiduciary duties, including:

a) Duty of care: To exercise reasonable skill and care in managing the trust[43].

b) Duty to invest: To make prudent investments in accordance with the trust deed and applicable laws[44].

c) Duty to account: To maintain proper records and provide information to beneficiaries[45].

d) Duty of impartiality: To act fairly between different classes of beneficiaries[46].

2. Investment Powers

The Trustee Act provides statutory investment powers, but these can be modified by the trust deed. Key considerations include:

a) Diversification requirements

b) Restrictions on certain types of investments

c) Delegation of investment decisions[47]

3. Distribution of Trust Assets

Trustees must adhere to the distribution provisions in the trust deed, which may involve:

a) Fixed distributions at specified intervals

b) Discretionary distributions based on beneficiary needs

c) Accumulation of income within the trust[48]

4. Record Keeping and Reporting

Proper administration requires maintaining comprehensive records, including:

a) Trust accounts and financial statements

b) Minutes of trustee meetings

c) Correspondence with beneficiaries

d) Investment records and valuations[49]

5. Variation of Trusts

Trusts may need to be varied due to changing circumstances. Methods for variation include:

a) Powers within the trust deed

b) Consent of all beneficiaries (if of full age and capacity)

c) Court-approved variations under the Trustees Act[50]

6. Termination of Trusts

Trusts may be terminated in various ways, including:

a) Expiration of the trust period

b) Achievement of the trust’s purpose

c) Revocation by the settlor (if permitted)

d) Court order[51]

D. Professional Trust Services

1. Licensed Trust Companies

In Singapore, professional trust services are primarily provided by licensed trust companies, regulated under the Trust Companies Act. These entities offer:

a) Trustee services

b) Trust administration and management

c) Custodial services for trust assets[52]

2. Private Trust Companies

Singapore law allows for the establishment of Private Trust Companies (PTCs) to serve as trustees for family trusts. PTCs offer:

a) Greater family control over trust administration

b) Flexibility in trustee decision-making

c) Confidentiality for family wealth structures[53]

The establishment and administration of trusts in Singapore involve complex legal and practical considerations. From the initial creation of the trust to ongoing management and potential termination, each stage requires careful attention to legal requirements and fiduciary responsibilities. As we move forward to examine the regulatory framework and tax implications for trusts in Singapore, this understanding of trust establishment and administration will provide crucial context for navigating the broader legal landscape governing trust structures in this jurisdiction.

V. Rights and Duties of Trustees, Settlors, and Beneficiaries

The effective functioning of a trust in Singapore depends on a clear understanding and proper execution of the rights and duties of all parties involved. This section explores the legal obligations and entitlements of trustees, settlors, and beneficiaries under Singapore trust law.

A. Trustees’ Rights and Duties

Trustees play a central role in the trust structure, holding legal title to trust assets and managing them for the benefit of the beneficiaries. Their rights and duties are extensive and strictly enforced under Singapore law.

1. Fiduciary Duties

Trustees owe fiduciary duties to the beneficiaries, which form the cornerstone of their legal obligations:

a) Duty of Loyalty: Trustees must act solely in the interests of the beneficiaries[54].

b) Duty to Avoid Conflicts of Interest: Trustees must not place themselves in a position where their personal interests conflict with their duties as trustees[55].

c) Duty of Confidentiality: Trustees must maintain the confidentiality of trust affairs[56].

2. Statutory Duties

The Trustee Act imposes several statutory duties on trustees:

a) Duty of Care: Trustees must exercise reasonable skill and care in administering the trust[57].

b) Duty to Invest: Trustees must make prudent investments in accordance with the trust deed and applicable laws[58].

c) Duty to Provide Information: Trustees must provide certain information to beneficiaries upon request, subject to the terms of the trust deed[59].

d) Duty to Act Jointly: Where there are multiple trustees, they must generally act unanimously unless the trust deed provides otherwise[60].

3. Powers of Trustees

Trustees in Singapore are granted various powers to effectively manage the trust:

a) Investment Powers: The power to invest trust assets in accordance with the Trustee Act and the trust deed[61].

b) Power of Delegation: The ability to delegate certain functions, subject to statutory restrictions[62].

c) Power of Advancement: The discretion to advance capital to beneficiaries in certain circumstances[63].

d) Power of Maintenance: The ability to apply income for the maintenance, education, or benefit of minor beneficiaries[64].

4. Rights of Trustees

To balance their significant responsibilities, trustees are afforded certain rights:

a) Right to Remuneration: If provided for in the trust deed or by court order[65].

b) Right to Indemnity: For expenses properly incurred in the administration of the trust[66].

c) Right to Seek Court Directions: In cases of uncertainty or potential breach[67].

5. Liability of Trustees

Trustees may be held personally liable for breaches of trust, subject to certain protections:

a) Liability for Breach: Trustees are liable for losses resulting from breaches of trust[68].

b) Exculpation Clauses: The effectiveness of clauses limiting trustee liability is subject to public policy considerations[69].

c) Relief from Liability: Courts may grant relief if the trustee has acted honestly and reasonably[70].

B. Settlors’ Rights and Duties

The settlor’s role is primarily to create the trust, but they may retain certain rights and responsibilities depending on the trust structure.

1. Rights of Settlors

a) Right to Reserve Powers: Settlors may reserve certain powers, such as the power to revoke the trust or change beneficiaries, subject to legal limitations[71].

b) Right to Information: Settlors generally have the right to information about the trust during their lifetime, unless explicitly excluded[72].

2. Duties of Settlors

a) Duty to Transfer Assets: The settlor must effectively transfer legal title of the trust assets to the trustees[73].

b) Duty of Disclosure: When creating the trust, the settlor must disclose all relevant information to the trustees[74].

3. Limitations on Settlor Control

Excessive control retained by the settlor may risk invalidating the trust or triggering adverse tax consequences:

a) Sham Trusts: Trusts may be declared void if the settlor retains too much control, indicating a lack of genuine intention to create a trust[75].

b) Resulting Trusts: Excessive settlor control may lead to a resulting trust in favor of the settlor[76].

C. Beneficiaries’ Rights and Duties

Beneficiaries are the ultimate recipients of trust benefits and have significant rights under Singapore trust law.

1. Rights of Beneficiaries

a) Right to Information: Beneficiaries have the right to request certain information about the trust, subject to the trustee’s discretion and the terms of the trust deed[77].

b) Right to Enforce the Trust: Beneficiaries can bring legal action to enforce the terms of the trust or to remedy a breach of trust[78].

c) Right to Income/Capital: As specified in the trust deed, beneficiaries have the right to receive distributions of income or capital[79].

d) Right to Transfer Beneficial Interest: Unless prohibited by the trust deed, beneficiaries may generally assign their beneficial interest[80].

2. The Rule in Saunders v Vautier

This common law rule, recognized in Singapore, allows beneficiaries who are of full age and capacity, and who are collectively entitled to the entire beneficial interest, to terminate the trust and call for the distribution of trust assets[81].

3. Duties of Beneficiaries

While beneficiaries generally do not have formal duties, certain obligations may arise:

a) Duty to Repay: If overpaid due to trustee error, beneficiaries may be required to repay excess distributions[82].

b) Duty to Provide Information: Beneficiaries may need to provide personal information to trustees for trust administration purposes[83].

4. Protections for Beneficiaries

Singapore law provides several protections for beneficiaries:

a) Tracing: Beneficiaries can trace trust property wrongfully disposed of by trustees[84].

b) Personal Liability of Trustees: Trustees are personally liable for breaches of trust, providing recourse for beneficiaries[85].

c) Limitation Period: The Limitation Act provides specific timeframes within which beneficiaries must bring claims against trustees[86].

Understanding the intricate web of rights and duties among trustees, settlors, and beneficiaries is crucial for effective trust management and dispute resolution in Singapore. These relationships form the foundation of trust law and inform many of the regulatory and tax considerations that we will explore in subsequent sections.

VI. Regulatory Framework and Compliance Requirements

Singapore’s robust regulatory framework for trusts aims to maintain the integrity of its financial system while providing a competitive environment for trust services. This section examines the key regulatory bodies, legislative requirements, and compliance obligations that govern trust structures in Singapore.

A. Regulatory Bodies

1. Monetary Authority of Singapore (MAS)

MAS is the primary regulator for the financial services sector in Singapore, including trust companies:

a) Licensing and Supervision: MAS licenses and supervises trust companies under the Trust Companies Act[87].

b) Regulatory Guidelines: MAS issues guidelines on various aspects of trust business, including anti-money laundering and countering the financing of terrorism (AML/CFT)[88].

2. Accounting and Corporate Regulatory Authority (ACRA)

ACRA plays a role in the regulation of corporate trustees and business trusts:

a) Registration: Corporate trustees must be registered with ACRA[89].

b) Compliance Monitoring: ACRA monitors compliance with corporate governance requirements[90].

B. Legislative Framework

1. Trust Companies Act (Cap. 336)

This Act provides the primary regulatory framework for trust companies in Singapore:

a) Licensing Requirements: Establishes criteria for obtaining and maintaining a trust business license[91].

b) Ongoing Obligations: Sets out the continuing obligations of licensed trust companies[92].

2. Securities and Futures Act (Cap. 289)

Relevant for certain types of trusts, particularly those involved in investment activities:

a) Collective Investment Schemes: Regulates unit trusts and other collective investment schemes[93].

b) Business Trusts: Provides for the regulation of business trusts[94].

3. Income Tax Act (Cap. 134)

Contains provisions specific to the taxation of trusts and their beneficiaries:

a) Tax Treatment: Outlines the tax treatment of various types of trusts[95].

b) Reporting Requirements: Specifies tax reporting obligations for trustees[96].

4. Trustees Act (Cap. 337)

While primarily focused on trust law principles, it also contains provisions relevant to trust administration and trustee duties[97].

C. Compliance Requirements

1. Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)

Trust companies must implement robust AML/CFT measures:

a) Customer Due Diligence: Conducting thorough checks on clients, including settlors and beneficiaries[98].

b) Ongoing Monitoring: Regular review of trust activities and transactions[99].

c) Suspicious Transaction Reporting: Obligation to report suspicious transactions to relevant authorities[100].

2. Common Reporting Standard (CRS)

Singapore has implemented the CRS, which impacts trust reporting:

a) Reporting Obligations: Trustees may need to report trust information to tax authorities[101].

b) Due Diligence: Trustees must conduct due diligence on trust structures to identify reportable accounts[102].

3. Foreign Account Tax Compliance Act (FATCA)

As an IGA Model 1 jurisdiction, Singapore requires certain trusts to comply with FATCA:

a) Reporting: Trustees may need to report information on U.S. persons to Singapore tax authorities[103].

b) Registration: Certain trusts may need to register with the U.S. Internal Revenue Service[104].

4. Beneficial Ownership Reporting

Recent regulations require the disclosure of beneficial ownership information:

a) Registers of Registrable Controllers: Certain trusts may need to maintain registers of controlling persons[105].

b) Disclosure to Authorities: Information may need to be disclosed to relevant authorities upon request[106].

5. Data Protection

Trust companies must comply with the Personal Data Protection Act (PDPA):

a) Consent Requirements: Obtaining necessary consents for collecting and using personal data[107].

b) Data Security: Implementing measures to protect personal data[108].

6. Corporate Governance

Licensed trust companies must adhere to corporate governance standards:

a) Board Composition: Requirements for board structure and independence[109].

b) Internal Controls: Maintaining robust internal control systems[110].

7. Professional Competence

Trust companies must ensure the competence of their staff:

a) Fit and Proper Criteria: Ensuring key personnel meet MAS fit and proper person criteria[111].

b) Ongoing Training: Providing regular training to staff on regulatory requirements and industry developments[112].

D. Regulatory Compliance for Specific Trust Types

1. Unit Trusts and Collective Investment Schemes

Subject to additional regulations under the Securities and Futures Act:

a) Prospectus Requirements: Detailed disclosure obligations for public offerings[113].

b) Investment Restrictions: Limitations on investment activities and asset allocation[114].

2. Business Trusts

Regulated under the Business Trusts Act, with specific requirements:

a) Trustee-Manager: Must appoint a trustee-manager to administer the trust[115].

b) Disclosure Obligations: Ongoing disclosure requirements to unitholders[116].

3. Private Trust Companies

Subject to a lighter touch regulatory regime:

a) Exemption from Licensing: Can apply for exemption from trust business license requirement[117].

b) Anti-Money Laundering Obligations: Still subject to AML/CFT requirements[118].

The regulatory landscape for trusts in Singapore is comprehensive and dynamic, reflecting the jurisdiction’s commitment to maintaining its reputation as a well-regulated financial center. Trust practitioners must navigate this complex framework to ensure compliance while leveraging the flexibility and benefits offered by Singapore’s trust law regime. As we move forward to examine the tax implications for trusts, this understanding of the regulatory environment will provide crucial context for structuring and administering trusts in Singapore.

VII. Tax Regime and Implications for Trusts in Singapore

Singapore’s tax regime for trusts is designed to balance the nation’s attractiveness as a wealth management hub with the need for a fair and transparent tax system. This section provides a detailed analysis of the tax treatment of various types of trusts, the obligations of trustees and beneficiaries, and the international tax considerations relevant to trust structures in Singapore.

A. General Principles of Trust Taxation in Singapore

1. Tax Transparency Principle

Singapore generally applies a tax transparency approach to trusts:

a) Income Taxation: Trust income is typically taxed in the hands of beneficiaries rather than at the trust level[119].

b) Exceptions: Certain types of trusts may be taxed differently, as discussed below[120].

2. Residency Rules for Trusts

The tax treatment of a trust can depend on its residency status:

a) Resident Trust: Generally, a trust is considered resident in Singapore if the majority of trustees are resident in Singapore[121].

b) Non-Resident Trust: Trusts that do not meet the residency criteria are treated as non-resident[122].

B. Taxation of Specific Trust Types

1. Discretionary Trusts

The tax treatment of discretionary trusts depends on various factors:

a) Resident Beneficiaries: Income distributed to resident beneficiaries is taxed at their personal tax rates[123]. These rates are progressive, ranging from 0% to 22% for the Year of Assessment 2023 onwards. The tax base is the amount of trust income actually distributed to the beneficiary, which is added to their other taxable income.

Advantage: This allows for income splitting among beneficiaries, potentially reducing the overall tax burden if some beneficiaries are in lower tax brackets.

b) Non-Resident Beneficiaries: Distributions to non-resident beneficiaries may be subject to withholding tax[124].

The withholding tax rates vary depending on the nature of the income:

• Interest: 15%
• Dividends: 0% (exempt)
• Royalties: 10%
• Other income: 22%[232]

The tax base is the gross amount of the distribution.

Advantage: The 0% withholding tax on dividends can be particularly attractive for non-resident beneficiaries.

c) Accumulation Trusts: Undistributed income may be taxed at the trustee level at a flat rate of 17%[125]. This applies when:

• The trust deed provides for accumulation of income
• The trustee exercises discretion to accumulate income
• Beneficiaries have not yet been identified or are not yet entitled to the income

The tax base is the trust’s statutory income (total income minus allowable deductions) that remains undistributed.

Advantage: The 17% flat rate can be lower than the top marginal rate for individuals (22%), potentially offering tax deferral benefits if eventual distribution to beneficiaries is planned for a future year when they may be in a lower tax bracket.

2. Fixed Trusts

Income from fixed trusts is generally taxed in the hands of beneficiaries:

a) Direct Taxation: Beneficiaries are taxed on their share of trust income, whether distributed or not[126]. The tax base is the beneficiary’s entitlement to the trust income, which is taxed at their personal tax rates (0-22% for residents, or relevant withholding tax rates for non-residents).

b) Tax Credits: Beneficiaries may claim tax credits for any tax paid at the trustee level[127]. This applies when the trustee has paid tax on income that is subsequently distributed to beneficiaries.

c) Deemed Income Rules: For resident beneficiaries of foreign trusts, there are specific “deemed income” rules. If the capital of the foreign trust is provided by a Singapore resident settlor, the resident beneficiary may be taxed on a portion of the trust income, even if not distributed[233].

The tax base in this case is calculated as:

(A x B) ÷ C, where:

A = Total trust income for the year

B = Capital provided by the Singapore resident settlor

C = Total trust capital

Advantage: While this rule may seem disadvantageous, it actually provides certainty and can prevent more aggressive tax treatment that might otherwise apply to foreign trust structures.

3. Foreign Trusts

The tax treatment of foreign trusts depends on the source of income and residency of beneficiaries:

a) Singapore-Sourced Income: Subject to Singapore tax, regardless of whether distributed[128].

b) Foreign-Sourced Income: Generally not taxable if received by a non-resident beneficiary[129].

4. Charitable Trusts

Registered charities in Singapore enjoy tax exemptions:

a) Income Tax Exemption: Qualifying charitable trusts are exempt from income tax[130].

b) Donor Tax Benefits: Donations to approved charitable trusts may qualify for tax deductions[131].

5. Unit Trusts

Unit trusts are subject to specific tax rules:

a) Tax Transparency: Qualifying unit trusts may enjoy tax transparency treatment[132].

b) Designated Unit Trusts: Certain unit trusts may be designated for further tax concessions[133].

6. Business Trusts

Business trusts are generally taxed like companies:

a) Entity-Level Taxation: Income is taxed at the trustee level at the prevailing corporate tax rate, which is 17%. [134].

b) Distribution Treatment: Distributions may be treated as dividends for tax purposes[135]. These distributions are typically exempt from further taxation in the hands of the unit holders if the income has already been taxed at the trustee level. This ensures that there is no double taxation on the distributed income.

C. Taxation of Trust Income

1. Singapore-Sourced Income

Income derived from Singapore sources is generally subject to Singapore tax:

a) Trade or Business Income: Taxed at prevailing income tax rates[136].

b) Rental Income: Subject to property tax and potentially income tax[137].

c) Investment Income: May be subject to various tax treatments depending on the nature of the investment[138].

2. Foreign-Sourced Income

The treatment of foreign-sourced income depends on whether it is remitted to Singapore:

a) Remittance Basis: Foreign-sourced income is generally taxable when remitted to Singapore[139].

b) Exemptions: Certain types of foreign-sourced income may be exempt from tax if specific conditions are met[140].

3. Capital Gains

Singapore does not tax capital gains, but the distinction between income and capital can be complex:

a) Badges of Trade: Factors considered in determining whether gains are capital or income in nature[141].

b) Frequent Trading: Regular trading activities may be considered income rather than capital gains[142].

D. Tax Obligations and Compliance

1. Trustee Obligations

Trustees have various tax-related responsibilities:

a) Filing Requirements: Trustees may need to file trust tax returns annually[143].

b) Withholding Tax: Obligations to withhold tax on certain distributions to non-residents[144].

c) Record Keeping: Maintaining proper financial records for tax purposes[145].

2. Beneficiary Obligations

Beneficiaries have their own tax responsibilities:

a) Income Declaration: Obligation to declare trust income in personal tax returns[146].

b) Foreign Trust Disclosure: Potential requirement to disclose interests in foreign trusts[147].

3. Tax Residency Certificate

Trusts may apply for a Certificate of Residence for tax treaty purposes:

a) Eligibility: Based on the residency status of trustees and control of the trust[148].

b) Benefits: May provide access to tax treaty benefits in certain jurisdictions[149].

E. International Tax Considerations

1. Double Tax Agreements (DTAs)

Singapore’s extensive network of DTAs can impact the taxation of trust structures:

a) Withholding Tax Rates: Reduced rates may apply to cross-border trust distributions[150].

b) Tie-Breaker Rules: DTAs may determine the tax residency of trusts in cross-border situations[151].

2. Exchange of Information

Singapore participates in international tax transparency initiatives:

a) Common Reporting Standard (CRS): Automatic exchange of financial account information[152].

b) Foreign Account Tax Compliance Act (FATCA): Reporting of certain U.S. person accounts[153].

3. Transfer Pricing

Transfer pricing rules may apply to transactions between trusts and related parties:

a) Arm’s Length Principle: Transactions should be conducted on arm’s length terms[154].

b) Documentation Requirements: Maintaining transfer pricing documentation for significant related party transactions[155].

F. Recent Developments and Future Trends

1. Economic Substance Requirements

Increasing focus on economic substance for tax purposes:

a) BEPS Initiatives: Alignment with OECD Base Erosion and Profit Shifting (BEPS) project[156].

b) Substance Considerations: Potential impact on trust structures and management[157].

2. Digital Economy Taxation

Evolving rules for taxing digital transactions may affect certain trust structures:

a) GST on Digital Services: Implementation of GST on imported digital services[158].

b) Potential Digital Taxes: Monitoring of international developments in digital taxation[159].

The tax regime for trusts in Singapore offers both opportunities and complexities. While the general principle of tax transparency provides a favorable framework, the specific tax treatment can vary significantly depending on the type of trust, the nature of its income, and the residency status of the parties involved. Trustees and beneficiaries must navigate these rules carefully to ensure compliance and optimize tax efficiency. As Singapore continues to evolve its tax policies in response to global developments, trust practitioners must stay abreast of changes and adapt their strategies accordingly.

VIII. International Aspects and Cross-Border Considerations

Singapore’s position as a global financial hub makes it imperative to consider the international dimensions of trust law and practice. This section explores the cross-border aspects of trusts in Singapore, including conflict of laws, recognition of foreign trusts, and international estate planning considerations.

A. Conflict of Laws in Trust Matters

1. Choice of Law

Singapore courts generally respect the choice of law expressed in trust instruments:

a) Express Choice: The settlor’s express choice of governing law is usually upheld[160].

b) Implied Choice: In the absence of express choice, the court may infer the intended governing law[161].

2. Determining Applicable Law

Where no choice is made or implied, Singapore courts consider various factors:

a) Closest Connection Test: Determining which jurisdiction has the closest connection to the trust[162].

b) Relevant Factors: Consideration of the settlor’s domicile, location of assets, and place of administration[163].

3. Scope of Applicable Law

The chosen or determined law governs various aspects of the trust:

a) Validity: The formal and essential validity of the trust[164].

b) Construction: Interpretation of trust terms[165].

c) Administration: Day-to-day management of the trust[166].

B. Recognition and Enforcement of Foreign Trusts

1. General Principles

Singapore courts generally recognize foreign trusts that are valid under their governing law:

a) Comity: Respect for foreign legal systems and validly created foreign trusts[167].

b) Public Policy: Recognition may be denied if the trust violates Singapore public policy[168].

2. The Hague Trust Convention

While Singapore is not a signatory, its approach aligns with many principles of the Convention:

a) Validity Recognition: Recognition of trusts valid under their governing law[169].

b) Mandatory Rules: Consideration of mandatory rules of closely connected jurisdictions[170].

3. Enforcement of Foreign Trust Judgments

Singapore’s approach to enforcing foreign judgments applies to trust-related decisions:

a) Reciprocal Enforcement: Judgments from certain jurisdictions may be enforced under statutory schemes[171].

b) Common Law Recognition: Other foreign judgments may be recognized under common law principles[172].

C. Cross-Border Asset Protection

1. Asset Protection Trusts

Singapore law allows for the creation of asset protection trusts:

a) Fraudulent Transfer Rules: Transfers to trusts may be set aside if intended to defraud creditors[173].

b) Statutory Periods: Time limits for challenging transfers to trusts[174].

2. Foreign Creditor Claims

The treatment of foreign creditor claims against Singapore trusts involves several key considerations:

a) Governing Law: The law governing the trust, often the jurisdiction in which the trust is established, plays a crucial role in determining the validity and enforceability of creditor claims[175]. This includes whether the trust assets are protected from claims by foreign creditors, especially in cases where the trust’s governing law has robust asset protection features.

b) Enforcement Challenges: Enforcing foreign judgments against trust assets located in Singapore can be complex and challenging. Practical difficulties arise due to the need for recognition of foreign court orders under Singaporean law, potential differences in legal principles, and the protective mechanisms inherent in the trust structure itself[176]. Creditors may face significant hurdles, particularly when the trust has been structured to shield assets from external claims.

D. International Estate Planning

1. Succession Planning

Trusts are powerful tools in international succession planning, offering various benefits:

a) Probate Avoidance: Assets held within a trust generally bypass the probate process, allowing for a smoother and quicker transfer of wealth upon death[177]. This can be particularly advantageous in multiple jurisdictions where probate can be lengthy, costly, and subject to public disclosure.

b) Forced Heirship: Trusts may conflict with forced heirship rules found in civil law jurisdictions, which mandate a specific distribution of a deceased person’s estate[178]. When planning for succession, it is essential to consider how the trust’s provisions align with or circumvent these legal requirements, potentially leading to disputes or legal challenges in jurisdictions where forced heirship is strictly enforced.

2. Cross-Border Tax Planning

Trusts can be strategically used for efficient cross-border tax structuring, leveraging several advantages:

a) Treaty Networks: Singapore’s extensive network of double taxation agreements (DTAs) can be utilized to minimize tax liabilities on income generated across multiple jurisdictions[179]. Trusts can be structured to take full advantage of treaty benefits, reducing withholding taxes, avoiding double taxation, and ensuring tax-efficient distribution of income to beneficiaries.

b) Remittance Planning: Proper structuring of foreign income flows into and out of Singapore through trusts can optimize tax efficiency[180]. This includes careful planning of the timing and method of income remittance to minimize tax exposure under Singapore’s tax regime, which does not tax most foreign-sourced income unless remitted to Singapore.

3. Multi-Jurisdictional Families

Trusts offer flexible solutions to address the unique needs of globally mobile families:

a) Flexible Structures: Trusts can be designed with adaptable provisions that accommodate changing family circumstances, such as relocations, changes in tax residency, or evolving family dynamics[181]. This flexibility ensures that the trust remains effective and relevant across different jurisdictions and over time.

b) Conflict of Laws Considerations: Establishing trusts for families with assets or members in multiple jurisdictions requires careful planning to anticipate and mitigate potential conflicts of laws[182]. This includes addressing issues such as differing inheritance laws, recognition of trusts, and tax obligations in various countries, ensuring that the trust operates smoothly across borders..

E. Regulatory Compliance in Cross-Border Contexts

1. Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF)

Cross-border trust structures must adhere to stringent AML/CTF regulations:

a) Enhanced Due Diligence: Trusts with cross-border elements are subject to enhanced due diligence requirements to prevent money laundering and terrorism financing[183]. This involves thorough scrutiny of the source of funds, beneficiary identities, and the overall purpose of the trust, particularly when dealing with high-risk jurisdictions or politically exposed persons (PEPs).

b) International Cooperation: Singapore’s regulatory authorities actively cooperate with foreign counterparts to ensure compliance with international AML/CTF standards[184]. This cooperation may involve information sharing, joint investigations, and adherence to global best practices, ensuring that cross-border trust structures do not facilitate illegal activities and comply with all relevant regulations.

2. Common Reporting Standard (CRS) and FATCA

The Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) have significant implications for international trust structures:

a) Reporting Obligations: Under CRS and FATCA, trusts may be required to identify and report financial accounts held by non-residents and U.S. persons, respectively. This includes gathering and reporting information on settlors, beneficiaries, and any other parties with a vested interest in the trust[185]. The trust must ensure that it complies with these global reporting standards, which may involve complex identification and documentation processes to determine reportable accounts accurately.

b) Structuring Considerations: CRS and FATCA influence the design and administration of trusts, necessitating careful consideration of how trust structures are established and maintained to minimize reporting burdens and ensure compliance[186]. This may involve evaluating the jurisdictions in which the trust operates, the residency of its beneficiaries, and the type of assets held, to optimize the trust’s compliance position while maintaining confidentiality and tax efficiency.

3. Substance Requirements

The global focus on economic substance in international structures has increased scrutiny on trusts:

a) Management and Control: To meet substance requirements, it is essential that the trust’s management and control activities, such as decision-making processes and administrative functions, are conducted in a manner that reflects genuine economic activity within the jurisdiction[187]. This includes having qualified trustees, holding regular board meetings, and ensuring that key decisions are made where the trust is domiciled, thereby demonstrating that the trust is not merely a shell entity.

b) BEPS Compliance: Trust structures must align with the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) principles, which aim to prevent tax avoidance through artificial arrangements[188]. This requires ensuring that trusts are not used to exploit gaps in tax systems or shift profits to low-tax jurisdictions without corresponding economic substance, thereby maintaining the integrity and legitimacy of the trust in the eyes of international tax authorities..

F. Emerging Trends in International Trust Practice

1. Digital Assets and Cryptocurrencies

Trust structures are evolving to accommodate new forms of wealth, such as digital assets and cryptocurrencies:

a) Custody Solutions: Developing secure and compliant methods for holding digital assets within a trust is crucial. This includes selecting appropriate custodians or storage solutions that can securely manage private keys and other digital asset credentials while ensuring the assets are accessible and transferable according to the trust’s terms[189]. The trust must also consider the legal and tax implications of holding such assets in different jurisdictions.

b) Regulatory Challenges: As regulations surrounding digital assets continue to evolve, trusts holding these assets must navigate a complex and shifting legal landscape[190]. This includes staying informed of regulatory changes, such as licensing requirements, anti-money laundering obligations, and taxation rules specific to digital assets, to ensure that the trust remains compliant and can effectively manage these assets.

2. Cross-Border Philanthropic Structures

Trusts are increasingly used for international charitable activities, requiring innovative approaches:

a) Dual-Qualified Structures: Creating trusts that are recognized as charitable in multiple jurisdictions can maximize the tax benefits for donors and ensure that the trust’s philanthropic goals are met across borders[191]. This involves navigating the different legal requirements for charitable recognition in each jurisdiction, which may include establishing parallel entities or seeking recognition under specific international agreements.

b) Impact Investing: Trusts are playing a growing role in aligning investments with global social and environmental goals, known as impact investing[192]. Trustees must balance the fiduciary duty to preserve and grow trust assets with the desire to invest in projects or companies that contribute to positive social or environmental outcomes. This requires a strategic approach to portfolio management, ensuring that investments align with the trust’s values and objectives while also delivering financial returns..

3. Privacy and Transparency Balance

Navigating global trends towards transparency while maintaining legitimate privacy:

a) Beneficial Ownership Registers: Implications of global moves towards public registers[193].

b) Privacy Protection: Structuring trusts to balance transparency requirements with privacy needs[194].

The international aspects of trust law and practice in Singapore reflect the jurisdiction’s role as a global financial center. As cross-border wealth management becomes increasingly complex, Singapore’s trust industry must continue to adapt to changing international norms, regulatory requirements, and client needs. The ability to navigate these international waters effectively will be crucial for maintaining Singapore’s position as a leading trust jurisdiction in the years to come.

IX. Recent Developments and Future Trends

The trust landscape in Singapore is continuously evolving in response to global economic shifts, regulatory changes, and technological advancements. This section examines recent developments in Singapore’s trust law and practice, and explores emerging trends that are likely to shape the future of trusts in this jurisdiction.

A. Legislative and Regulatory Updates

1. Variable Capital Companies (VCC) Framework

The introduction of the Variable Capital Companies (VCC) framework marks a significant development in Singapore’s financial landscape, particularly for investment funds:

a) Trust-Like Features: The VCC structure integrates trust-like elements into a corporate framework, allowing for flexible capital management and investor protection similar to that of a trust[195]. VCCs can issue and redeem shares with ease, adjust capital based on net asset value, and segregate assets and liabilities among different sub-funds. These features make VCCs attractive for fund managers seeking the benefits of both corporate and trust structures.

b) Impact on Trust Industry: The VCC framework may lead to a shift in preference away from traditional trust structures for certain types of investment funds[196]. As VCCs offer advantages such as simplified compliance with international tax regulations, easier distribution management, and potentially lower operational costs, fund managers and investors might increasingly opt for VCCs over conventional trusts, particularly in the collective investment scheme (CIS) sector.

2. Amendments to the Trustees Act

Recent and proposed amendments to the Trustees Act aim to modernize Singapore’s trust law, enhancing its adaptability and relevance:

a) Expansion of Trustee Powers: The amendments expand the statutory powers of trustees, providing greater flexibility in the administration of trusts[197]. This includes broader investment powers, the ability to delegate certain functions more freely, and enhanced powers to manage and restructure trust assets. These changes are designed to enable trustees to respond more effectively to the needs of beneficiaries and the evolving financial landscape.

b) Statutory Duty of Care: The codification of trustees’ duty of care formalizes the expectations placed on trustees in managing trust assets[198]. Trustees are now legally obligated to act with due diligence, prudence, and loyalty, aligning their actions with the best interests of the beneficiaries. This statutory duty of care reduces ambiguity and provides clearer guidelines for trustees, thereby enhancing trust administration standards.

3. Enhanced AML/CFT Regulations

Singapore continues to strengthen its anti-money laundering (AML) and counter-terrorism financing (CTF) measures to maintain its position as a trusted financial hub:

a) Risk-Based Approach: The enhanced regulations emphasize a risk-based approach to AML/CTF compliance, requiring trustees and financial institutions to conduct thorough risk assessments and implement appropriate controls based on the level of risk identified[199]. This approach allows for more targeted and effective management of potential AML/CTF risks, focusing resources on high-risk areas while maintaining proportionality.

b) Beneficial Ownership Transparency: There is an increased focus on identifying and verifying the beneficial owners of trusts and related entities to enhance transparency and prevent the misuse of trusts for illicit purposes[200]. New regulations require more rigorous due diligence processes to ensure that the true owners and controllers of trust assets are accurately identified and reported, thereby closing potential loopholes in the financial system.

B. Technological Innovations

1. Blockchain and Smart Contracts

The exploration of blockchain technology and smart contracts is poised to revolutionize trust administration:

a) Automated Execution: Smart contracts, powered by blockchain technology, have the potential to automate the execution of trust distributions and other administrative tasks[201]. These self-executing contracts, embedded with predefined rules, can significantly reduce administrative burdens, enhance accuracy, and ensure timely distributions without manual intervention, thereby improving the efficiency of trust management.

b) Enhanced Transparency: Blockchain technology offers the potential for enhanced transparency in the tracking and management of trust assets and transactions[202]. The immutable nature of blockchain records allows for a clear and verifiable audit trail, reducing the risk of fraud and errors. This transparency can also build greater trust among beneficiaries and regulators, as all parties can have real-time access to accurate and up-to-date information..

2. Digital Asset Trusts

As digital assets like cryptocurrencies gain prominence, new frameworks for managing these assets in trusts are emerging:

a) Custody Solutions: The development of secure custody solutions for digital assets, including cryptocurrencies, is essential for their inclusion in trust structures[203]. This involves creating robust mechanisms to store and manage private keys and digital wallets, ensuring the safety and integrity of digital assets within a trust. Trustees must consider the unique risks associated with digital assets, such as cyber threats and regulatory uncertainty, when developing these custody solutions.

b) Regulatory Challenges: Navigating the evolving regulatory landscape surrounding digital assets remains a significant challenge for trustees[204]. As global and local regulations continue to develop, trustees must stay informed of changes that impact the legality, taxation, and reporting of digital asset holdings. Ensuring compliance while managing digital assets requires a proactive approach to regulatory updates and close collaboration with legal and financial experts.

3. Artificial Intelligence in Trust Administration

The integration of Artificial Intelligence (AI) tools in trust management is revolutionizing the way trusts are administered:

a) Risk Analysis: AI-driven tools are increasingly being employed to perform sophisticated assessments of investment risks and compliance issues[205]. These tools analyze vast amounts of data to identify potential risks in investment portfolios, predict market trends, and ensure that trust activities adhere to regulatory requirements. By automating risk analysis, trustees can make more informed decisions and reduce the likelihood of financial losses or regulatory breaches.

b) Predictive Analytics: AI enhances decision-making in discretionary trust distributions through predictive analytics[206]. By analyzing historical data and beneficiary behavior, AI can help trustees anticipate future needs, preferences, and potential financial outcomes. This enables more tailored and proactive management of trust distributions, ensuring that they align with the beneficiaries’ long-term interests and the trust’s objectives..

C. Evolving Trust Structures

1. Purpose Trusts

The growing interest in non-charitable purpose trusts reflects the evolving landscape of trust law and its applications:

a) Legislative Considerations: There is increasing potential for legislative recognition of broader purpose trusts beyond charitable purposes[207]. Jurisdictions are exploring amendments to trust laws to accommodate non-charitable purpose trusts, allowing for the creation of trusts dedicated to specific purposes such as maintaining family legacies, holding unique assets, or funding special projects. Legislative changes could provide a legal framework that supports the diverse needs of modern settlors.

b) Commercial Applications: Purpose trusts are being used in innovative commercial transactions, such as securitization, asset holding, and corporate governance[208]. These trusts can hold shares in a company, manage intellectual property, or serve as a vehicle for structured finance transactions, offering a flexible and secure way to achieve commercial objectives while preserving the trust’s integrity and legal protections..

2. Hybrid Structures

Hybrid structures are emerging as a way to combine the advantages of trusts with other legal entities:

a) Trust-Company Hybrids: Structures that blend characteristics of trusts and companies are gaining popularity[209]. These hybrids, such as private trust companies (PTCs), allow for family-controlled trust administration while benefiting from corporate governance frameworks. Trust-company hybrids provide greater control over trust decisions and can facilitate the intergenerational transfer of wealth with enhanced privacy and flexibility.

b) Foundation-Trust Combinations: The potential for foundation-like trusts is being explored to combine the benefits of foundations with those of traditional trusts[210]. These structures offer the flexibility of a trust with the legal personality of a foundation, making them attractive for philanthropic endeavors, family governance, and asset protection. Such combinations are particularly useful in jurisdictions where foundations are preferred for their legal status and operational capabilities..

3. Sustainable and Impact Investing Trusts

The alignment of trust investments with environmental and social goals is becoming increasingly important:

a) ESG Integration: Trusts are incorporating Environmental, Social, and Governance (ESG) factors into their investment strategies[211]. Trustees are increasingly considering the ethical and sustainability impacts of their investments, ensuring that the trust’s portfolio reflects the values of the settlor and beneficiaries. This approach not only contributes to positive social outcomes but also mitigates risks associated with non-ESG compliant investments.

b) Impact Measurement: Developing frameworks to measure and report on the social impact of trust investments is crucial for maintaining accountability and transparency[212]. Trustees are adopting tools and methodologies to assess the effectiveness of impact investing, providing clear metrics on how investments contribute to societal and environmental goals. This practice enhances trust governance and ensures that investments deliver both financial returns and measurable social benefits.

D. Cross-Border Developments

1. Economic Substance Requirements

Trusts must adapt to global economic substance requirements to ensure compliance and avoid penalties:

a) BEPS Alignment: Trust structures are being increasingly scrutinized to ensure they meet the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) standards[213]. This involves ensuring that trusts are not used as vehicles for tax avoidance through artificial arrangements that lack genuine economic substance. Trusts must demonstrate that they engage in real economic activities and have sufficient substance in the jurisdictions where they operate.

b) Substance Guidelines: There is potential for the introduction of specific substance guidelines for trusts, providing clearer standards for compliance[214]. These guidelines would outline the necessary levels of physical presence, management control, and economic activity required for trusts to meet substance requirements. Adherence to these guidelines will be essential for maintaining the legitimacy and tax efficiency of cross-border trust structures.

2. Information Exchange and Transparency

The global trend towards greater transparency is reshaping the trust industry:

a) Expansion of CRS: There is potential for the broadening of reportable information under the Common Reporting Standard (CRS)[215]. Jurisdictions may expand the scope of reportable data to include more detailed information on trust assets, transactions, and beneficiaries. This expansion would enhance transparency but also increase the reporting burden on trustees, necessitating robust compliance systems to manage the flow of information.

b) Beneficial Ownership Registers: The global move towards public registers of beneficial ownership has significant implications for trusts[216]. These registers aim to prevent the misuse of trusts for money laundering or tax evasion by making the identities of beneficial owners publicly accessible. Trustees must navigate these developments while balancing transparency with the need to protect the privacy and security of beneficiaries.

3. Asian Wealth Management Hub

Singapore’s evolving role as a leading wealth management hub in Asia is driving innovation in trust services:

a) Regional Integration: Singapore is facilitating the creation of cross-border trust structures within Asia, capitalizing on its strong legal framework and strategic location[217]. The city-state’s growing network of double taxation agreements (DTAs) and financial services expertise positions it as a central hub for managing and structuring wealth across the region, attracting high-net-worth individuals and families from neighboring countries.

b) Competing Jurisdictions: As competition from other Asian financial centers intensifies, Singapore must adapt to maintain its competitive edge[218]. This includes enhancing its regulatory environment, offering innovative trust products, and continuing to attract top-tier talent in trust administration. By staying ahead of emerging trends and addressing the unique needs of Asian clients, Singapore can solidify its position as the preferred jurisdiction for wealth management in the region.

E. Changing Client Needs and Expectations

1. Next-Generation Wealth Transfer

Trust structures must evolve to meet the needs of millennial and Gen Z beneficiaries, who have different expectations from previous generations:

a) Digital Engagement: Incorporating technology into beneficiary communication and education is essential for engaging younger generations[219]. Trusts are increasingly using digital platforms to provide real-time access to trust information, offer financial education, and facilitate interactive communication between trustees and beneficiaries. This digital approach ensures transparency, fosters trust, and aligns with the tech-savvy preferences of younger beneficiaries.

b) Values-Based Investing: Aligning trust investments with the values of millennial and Gen Z beneficiaries is becoming a priority[220]. These generations are more likely to prioritize social responsibility and ethical considerations in their investment choices. Trustees must therefore integrate values-based investment strategies that reflect the beneficiaries’ desire to support sustainable and impactful businesses, while still achieving financial objectives..

2. Global Mobility

As families and assets become increasingly global, trust structures must be flexible and compliant across multiple jurisdictions:

a) Flexible Structures: Designing trusts to accommodate changing residency and citizenship is crucial for global families[221]. This includes creating trust provisions that allow for easy modification in response to changes in tax residency, legal status, or geopolitical risks. Flexibility in trust structures ensures that they remain effective and relevant regardless of where the beneficiaries or assets are located.

b) Multi-Jurisdictional Compliance: Ensuring that trusts remain compliant across multiple jurisdictions requires careful planning and coordination[222]. Trustees must navigate complex legal and tax obligations in each relevant country, often involving collaboration with local advisors and adherence to diverse regulatory frameworks. Maintaining compliance is key to avoiding legal disputes, penalties, and potential damage to the trust’s reputation.

3. Privacy and Security Concerns

Balancing the need for transparency with the protection of privacy is a growing concern for trust clients:

a) Data Protection: Enhancing cybersecurity measures for trust-related data is essential in an era of increasing digital threats[223]. Trustees must implement robust data protection protocols, including encryption, secure communication channels, and regular security audits, to safeguard sensitive information from unauthorized access and cyberattacks. Protecting the privacy of beneficiaries and the integrity of trust operations is paramount.

b) Reputation Management: Addressing reputational risks in an era of increased scrutiny is critical for maintaining client trust and confidence[224]. Trustees must be proactive in managing the public perception of trusts, particularly in light of heightened transparency requirements and media attention on wealth management practices. This involves careful communication, ethical management, and, when necessary, legal action to protect the trust’s reputation and the privacy of its beneficiaries.

F. Professional Development and Industry Standards

1. Specialized Certifications

The development of trust-specific professional qualifications is enhancing the expertise and credibility of trust practitioners:

a) Technical Expertise: Specialized certifications are providing trust professionals with the advanced knowledge needed to navigate complex trust matters[225]. These qualifications cover areas such as tax planning, international law, and fiduciary responsibilities, equipping practitioners with the skills to manage sophisticated trust structures and address the unique needs of high-net-worth clients.

b) Ethical Standards: Strengthening ethical guidelines for trust professionals is essential for maintaining the integrity of the trust industry[226]. Certifications and professional bodies are increasingly emphasizing the importance of ethical conduct, fiduciary duty, and client confidentiality. Upholding these standards is critical in building client trust and ensuring the long-term success of the industry.

2. Interdisciplinary Approach

The growing need for collaboration across professional disciplines is reshaping trust management practices:

a) Legal-Financial Integration: Closer cooperation between legal and financial advisors is becoming increasingly important in trust management[227]. Complex trust structures often require input from both legal and financial professionals to ensure compliance with regulations, optimize tax outcomes, and align investment strategies with trust objectives. This interdisciplinary approach enables a more holistic management of trusts, addressing all aspects of the trust’s operation and governance.

b) Tech-Trust Nexus: The intersection of trust law and technology is fostering new opportunities and challenges in trust administration[228]. As technology becomes integral to trust management—through digital assets, blockchain, and AI—legal professionals must collaborate with tech experts to navigate the legal implications of these innovations. This collaboration ensures that trust structures are both legally sound and technologically advanced, providing beneficiaries with modern and secure trust solutions.

3. Regulatory Technology (RegTech)

The adoption of Regulatory Technology (RegTech) is transforming how trusts manage compliance:

a) Automated Compliance: Implementing RegTech systems for real-time compliance monitoring is becoming essential for trustees[229]. These systems use AI and machine learning to continuously monitor transactions, flag potential compliance issues, and generate reports that ensure adherence to regulatory requirements. By automating these processes, trustees can reduce the risk of human error, improve efficiency, and stay ahead of regulatory changes.

b) Reporting Efficiency: Streamlining regulatory reporting processes through RegTech solutions enhances the accuracy and timeliness of compliance[230]. RegTech tools simplify the preparation and submission of required documents to regulatory bodies, reducing the administrative burden on trustees. This efficiency allows trustees to focus more on the strategic aspects of trust management, while also ensuring that all reporting obligations are met promptly and accurately.

X. Conclusion

This comprehensive analysis has traversed the multifaceted landscape of trust law in Singapore, illuminating its historical foundations, current practices, and future trajectories. From its roots in English common law to its current status as a sophisticated and adaptive legal framework, Singapore’s trust law has evolved to meet the complex needs of modern wealth management and financial planning.

The robust regulatory environment, coupled with a tax regime that balances attractiveness with compliance, positions Singapore as a premier jurisdiction for trust establishment and administration. The city-state’s commitment to maintaining high standards of governance and transparency, while still offering flexible and efficient trust structures, has solidified its reputation in the global financial arena.

Key strengths of Singapore’s trust law framework include:

1. Legal Flexibility: The ability to accommodate a wide range of trust structures, from traditional family trusts to innovative commercial arrangements.

2. Regulatory Robustness: A comprehensive regulatory framework that instills confidence while allowing for innovation.

3. Tax Efficiency: A tax regime that provides opportunities for effective wealth planning while adhering to international standards.

4. International Recognition: Strong respect for the validity of trusts established under Singapore law in cross-border contexts.

5. Adaptability: A legal and regulatory environment that is responsive to global trends and emerging client needs.

However, the trust industry in Singapore also faces challenges and opportunities as it navigates an ever-changing global landscape:

1. Technological Disruption: The need to integrate new technologies while maintaining the integrity of traditional trust principles.

2. Regulatory Compliance: Balancing increased global demands for transparency with legitimate privacy concerns.

3. Competition: Maintaining Singapore’s competitive edge amidst rising competition from other financial centers.

4. Talent Development: Ensuring a pipeline of skilled professionals equipped to handle the complexities of modern trust practice.

5. Sustainability: Adapting trust structures to meet growing demand for sustainable and impact-focused wealth management.

As we look to the future, Singapore’s trust law is likely to continue evolving, driven by technological innovations, changing client demographics, and shifting global regulatory landscapes. The jurisdiction’s ability to maintain its reputation for stability and innovation while adapting to these changes will be crucial in determining its long-term success as a global trust hub.

For practitioners, beneficiaries, and settlors alike, navigating the complexities of Singapore’s trust law requires a nuanced understanding of its legal principles, practical applications, and ongoing developments. As the field continues to evolve, staying informed and adaptable will be key to leveraging the full potential of trust structures in this dynamic jurisdiction.

In conclusion, Singapore’s trust law offers a sophisticated, flexible, and well-regulated framework that caters to a wide range of wealth management and financial planning needs. Its continued evolution and adaptation to global trends position it well to remain a leading jurisdiction for trust services in the years to come. As the trust landscape continues to transform, Singapore’s blend of tradition and innovation in trust law will undoubtedly play a pivotal role in shaping the future of global wealth management.

Some references:

[1] Tan Yock Lin, “The Law of Trusts in Singapore” (2021), LexisNexis, p. 15.

[2] Andrew Phang, “From Foundation to Legacy: The Second Charter of Justice” (2006) Singapore Journal of Legal Studies, p. 1.

[3] Application of English Law Act (Cap. 7A, 1994 Rev Ed) s 3.

[4] Trustee Act (Cap. 337, 2005 Rev Ed).

[5] Civil Law Act (Cap. 43, 1999 Rev Ed) s 7.

[6] Trust Companies Act (Cap. 336, 2006 Rev Ed).

[7] Lau Siew Kim v Yeo Guan Chye Terence and another [2008] 2 SLR(R) 108.

[8] Guy Neale v Nine Squares Pty Ltd [2015] 1 SLR 1097.

[9] Conflict of Laws in Singapore (2017), Sweet & Maxwell, Chapter 8.

[10] MAS, “Singapore’s Trust Industry: Growth Opportunities and High Standards” (2019).

[11] Lewin on Trusts (20th Ed, 2020), Sweet & Maxwell, para 1-001.

[12] Chwee Kin Keong and others v Digilandmall.com Pte Ltd [2005] 1 SLR(R) 502.

[13] Re Kayford Ltd [1975] 1 WLR 279.

[14] Hunter v Moss [1994] 1 WLR 452.

[15] Re Baden’s Deed Trusts (No 2) [1973] Ch 9.

[16] Bristol and West Building Society v Mothew [1998] Ch 1.

[17] Snell’s Equity (34th Ed, 2019), Sweet & Maxwell, para 22-028.

[18] Schmidt v Rosewood Trust Ltd [2003] 2 AC 709.

[19] Tan Yock Lin, “The Law of Trusts in Singapore” (2021), LexisNexis, p. 95.

[20] Vandervell v Inland Revenue Commissioners [1967] 2 AC 291.

[21] Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134.

[22] OJSC Oil Company Yugraneft v Abramovich [2008] EWHC 2613 (Comm).

[23] Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378.

[24] Charities Act (Cap. 37, 2007 Rev Ed) s 2(1).

[25] Re Recher’s Will Trusts [1972] Ch 526.

[26] Re Endacott [1960] Ch 232.

[27] Securities and Futures Act (Cap. 289, 2006 Rev Ed) s 284.

[28] Code on Collective Investment Schemes, Monetary Authority of Singapore.

[29] Business Trusts Act (Cap. 31A, 2005 Rev Ed).

[30] Conflict of Laws in Singapore (2017), Sweet & Maxwell, Chapter 8.

[31] Civil Law Act (Cap. 43, 1999 Rev Ed) s 7.

[32] Intestate Succession Act (Cap. 146, 2013 Rev Ed).

[33] Tan Yock Lin, “The Law of Trusts in Singapore” (2021), LexisNexis, p. 50.

[34] Knight v Knight (1840) 3 Beav 148.

[35] Wills Act (Cap. 352, 1996 Rev Ed) s 6.

[36] Lewin on Trusts (20th Ed, 2020), Sweet & Maxwell, Chapter 4.

[37] Milroy v Lord (1862) 4 De GF & J 264.

[38] IRAS e-Tax Guide, “Income Tax Treatment of Trusts” (2019).

[39] Kaye v Zeital [2010] EWCA Civ 159.

[40] Trustee Act (Cap. 337, 2005 Rev Ed) ss 41-43.

[41] Saunders v Vautier (1841) 4 Beav 115.

[42] STEP Journal, “The Role of Protectors in Trusts” (2018).

[43] Trustee Act (Cap. 337, 2005 Rev Ed) s 3A.

[44] Trustee Act (Cap. 337, 2005 Rev Ed) s 4.

[45] Schmidt v Rosewood Trust Ltd [2003] 2 AC 709.

[46] Nestle v National Westminster Bank plc [1993] 1 WLR 1260.

[47] Trustee Act (Cap. 337, 2005 Rev Ed) ss 4-5.

[48] Lewin on Trusts (20th Ed, 2020), Sweet & Maxwell, Chapter 32.

[49] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 11.

[50] Trustees Act (Cap. 337, 2005 Rev Ed) s 56.

[51] Saunders v Vautier (1841) 4 Beav 115.

[52] Trust Companies Act (Cap. 336, 2006 Rev Ed).

[53] MAS, “Guidelines on the Regulation of Private Trust Companies” (2020).

[54] Bristol and West Building Society v Mothew [1998] Ch 1.

[55] Boardman v Phipps [1967] 2 AC 46.

[56] Attorney General v Guardian Newspapers Ltd (No 2) [1990] 1 AC 109.

[57] Trustee Act (Cap. 337, 2005 Rev Ed) s 3A.

[58] Trustee Act (Cap. 337, 2005 Rev Ed) s 4.

[59] Schmidt v Rosewood Trust Ltd [2003] 2 AC 709.

[60] Luke v South Kensington Hotel Co (1879) 11 Ch D 121.

[61] Trustee Act (Cap. 337, 2005 Rev Ed) s 4.

[62] Trustee Act (Cap. 337, 2005 Rev Ed) s 41.

[63] Trustee Act (Cap. 337, 2005 Rev Ed) s 32.

[64] Trustee Act (Cap. 337, 2005 Rev Ed) s 33.

[65] Robinson v Pett (1734) 3 P Wms 249.

[66] Re Beddoe [1893] 1 Ch 547.

[67] Trustee Act (Cap. 337, 2005 Rev Ed) s 55.

[68] Target Holdings Ltd v Redferns [1996] AC 421.

[69] Armitage v Nurse [1998] Ch 241.

[70] Trustee Act (Cap. 337, 2005 Rev Ed) s 60.

[71] Tan Yock Lin, “The Law of Trusts in Singapore” (2021), LexisNexis, p. 75.

[72] Schmidt v Rosewood Trust Ltd [2003] 2 AC 709.

[73] Milroy v Lord (1862) 4 De GF & J 264.

[74] Derry v Peek (1889) 14 App Cas 337.

[75] Snook v London and West Riding Investments Ltd [1967] 2 QB 786.

[76] Vandervell v Inland Revenue Commissioners [1967] 2 AC 291.

[77] Schmidt v Rosewood Trust Ltd [2003] 2 AC 709.

[78] Morice v Bishop of Durham (1805) 10 Ves 522.

[79] Lewin on Trusts (20th Ed, 2020), Sweet & Maxwell, Chapter 32.

[80] Grey v Inland Revenue Commissioners [1960] AC 1.

[81] Saunders v Vautier (1841) 4 Beav 115.

[82] Re Diplock [1948] Ch 465.

[83] Trustee Act (Cap. 337, 2005 Rev Ed) s 62.

[84] Foskett v McKeown [2001] 1 AC 102.

[85] Target Holdings Ltd v Redferns [1996] AC 421.

[86] Limitation Act (Cap. 163, 1996 Rev Ed) s 22.

[87] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 3.

[88] MAS, “Guidelines on Prevention of Money Laundering and Countering the Financing of Terrorism” (2021).

[89] Companies Act (Cap. 50, 2006 Rev Ed) s 4.

[90] Accounting and Corporate Regulatory Authority Act (Cap. 2A, 2005 Rev Ed) s 6.

[91] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 5.

[92] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 11.

[93] Securities and Futures Act (Cap. 289, 2006 Rev Ed) s 284.

[94] Business Trusts Act (Cap. 31A, 2005 Rev Ed).

[95] Income Tax Act (Cap. 134, 2014 Rev Ed) s 35.

[96] Income Tax Act (Cap. 134, 2014 Rev Ed) s 62.

[97] Trustee Act (Cap. 337, 2005 Rev Ed).

[98] MAS Notice TCA-N03 on Prevention of Money Laundering and Countering the Financing of Terrorism.

[99] MAS, “Guidelines on Prevention of Money Laundering and Countering the Financing of Terrorism” (2021).

[100] Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap. 65A, 2000 Rev Ed) s 39.

[101] Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016.

[102] IRAS, “AEOI e-Tax Guide” (2021).

[103] Income Tax (International Tax Compliance Agreements) (United States of America) Regulations 2015.

[104] IRS, “Foreign Account Tax Compliance Act (FATCA)” (2021).

[105] Companies Act (Cap. 50, 2006 Rev Ed) s 386AC.

[106] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 47.

[107] Personal Data Protection Act 2012 (No. 26 of 2012) s 13.

[108] Personal Data Protection Act 2012 (No. 26 of 2012) s 24.

[109] MAS, “Guidelines on Corporate Governance for Trust Companies” (2021).

[110] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 11.

[111] MAS, “Guidelines on Fit and Proper Criteria” (2020).

[112] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 11.

[113] Securities and Futures Act (Cap. 289, 2006 Rev Ed) s 296.

[114] Code on Collective Investment Schemes, Monetary Authority of Singapore.

[115] Business Trusts Act (Cap. 31A, 2005 Rev Ed) s 6.

[116] Business Trusts Act (Cap. 31A, 2005 Rev Ed) s 78.

[117] MAS, “Guidelines on the Regulation of Private Trust Companies” (2020).

[118] MAS Notice TCA-N03 on Prevention of Money Laundering and Countering the Financing of Terrorism.

[119] IRAS e-Tax Guide, “Income Tax Treatment of Trusts” (2019).

[120] Income Tax Act (Cap. 134, 2014 Rev Ed) s 35.

[121] Income Tax Act (Cap. 134, 2014 Rev Ed) s 2.

[122] IRAS e-Tax Guide, “Income Tax Treatment of Trusts” (2019).

[123] Income Tax Act (Cap. 134, 2014 Rev Ed) s 35(11).

[124] Income Tax Act (Cap. 134, 2014 Rev Ed) s 45G.

[125] Income Tax Act (Cap. 134, 2014 Rev Ed) s 35(12).

[126] IRAS e-Tax Guide, “Income Tax Treatment of Trusts” (2019).

[127] Income Tax Act (Cap. 134, 2014 Rev Ed) s 50C.

[128] Income Tax Act (Cap. 134, 2014 Rev Ed) s 10.

[129] Income Tax Act (Cap. 134, 2014 Rev Ed) s 13(8).

[130] Income Tax Act (Cap. 134, 2014 Rev Ed) s 13O.

[131] Income Tax Act (Cap. 134, 2014 Rev Ed) s 37(3).

[132] Income Tax Act (Cap. 134, 2014 Rev Ed) s 43(2).

[133] Income Tax Act (Cap. 134, 2014 Rev Ed) s 35A.

[134] Income Tax Act (Cap. 134, 2014 Rev Ed) s 36.

[135] Income Tax Act (Cap. 134, 2014 Rev Ed) s 43(2A).

[136] Income Tax Act (Cap. 134, 2014 Rev Ed) s 10(1)(a).

[137] Property Tax Act (Cap. 254, 2005 Rev Ed).

[138] Income Tax Act (Cap. 134, 2014 Rev Ed) s 10(1)(d).

[139] Income Tax Act (Cap. 134, 2014 Rev Ed) s 10(25).

[140] Income Tax Act (Cap. 134, 2014 Rev Ed) s 13(8).

[141] IB v Comptroller of Income Tax [2020] SGCA 32.

[142] GBU v The Comptroller of Income Tax [2017] SGCA 60.

[143] Income Tax Act (Cap. 134, 2014 Rev Ed) s 62.

[144] Income Tax Act (Cap. 134, 2014 Rev Ed) s 45G.

[145] Income Tax Act (Cap. 134, 2014 Rev Ed) s 67.

[146] Income Tax Act (Cap. 134, 2014 Rev Ed) s 62.

[147] Income Tax Act (Cap. 134, 2014 Rev Ed) s 105M.

[148] IRAS, “Certificate of Residence” (2021).

[149] IRAS e-Tax Guide, “Avoidance of Double Taxation Agreements” (2021).

[150] IRAS e-Tax Guide, “Avoidance of Double Taxation Agreements” (2021).

[151] OECD Model Tax Convention on Income and on Capital (2017).

[152] Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016.

[153] Income Tax (International Tax Compliance Agreements) (United States of America) Regulations 2015.

[154] Income Tax Act (Cap. 134, 2014 Rev Ed) s 34D.

[155] IRAS e-Tax Guide, “Transfer Pricing Guidelines” (2021).

[156] OECD, “BEPS Actions” (2021).

[157] MAS, “Guidelines on the Regulation of Variable Capital Companies” (2020).

[158] Goods and Services Tax Act (Cap. 117A, 2005 Rev Ed) s 8(1A).

[159] OECD, “Tax Challenges Arising from Digitalisation” (2021).

[160] Hague Convention on the Law Applicable to Trusts and on their Recognition (1985).

[161] Ying Khai Liew, “Choice of Law for Trusts in Singapore” (2020) Singapore Journal of Legal Studies.

[162] Cheshire, North & Fawcett: Private International Law (15th Ed, 2017), Oxford University Press.

[163] Tan Yock Lin, “The Law of Trusts in Singapore” (2021), LexisNexis, Chapter 15.

[164] Ying Khai Liew, “Choice of Law for Trusts in Singapore” (2020) Singapore Journal of Legal Studies.

[165] Re Luck’s Settlement Trusts [1940] Ch 864.

[166] Dicey, Morris & Collins on the Conflict of Laws (15th Ed, 2018), Sweet & Maxwell, Rule 159.

[167] Woon’s Corporations Law (2020), LexisNexis, Chapter 36.

[168] Ying Khai Liew, “Choice of Law for Trusts in Singapore” (2020) Singapore Journal of Legal Studies.

[169] Hague Convention on the Law Applicable to Trusts and on their Recognition (1985), Article 6.

[170] Hague Convention on the Law Applicable to Trusts and on their Recognition (1985), Article 16.

[171] Reciprocal Enforcement of Commonwealth Judgments Act (Cap. 264, 1985 Rev Ed).

[172] Dicey, Morris & Collins on the Conflict of Laws (15th Ed, 2018), Sweet & Maxwell, Rule 43.

[173] Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018) s 224.

[174] Limitation Act (Cap. 163, 1996 Rev Ed) s 24A.

[175] Dicey, Morris & Collins on the Conflict of Laws (15th Ed, 2018), Sweet & Maxwell, Rule 200.

[176] Tan Yock Lin, “The Law of Trusts in Singapore” (2021), LexisNexis, Chapter 15.

[177] Wills Act (Cap. 352, 1996 Rev Ed) s 7.

[178] Ying Khai Liew, “Choice of Law for Trusts in Singapore” (2020) Singapore Journal of Legal Studies.

[179] IRAS e-Tax Guide, “Avoidance of Double Taxation Agreements” (2021).

[180] IRAS e-Tax Guide, “Income Tax Treatment of Trusts” (2019).

[181] STEP Journal, “Trusts for Mobile Families” (2019).

[182] Dicey, Morris & Collins on the Conflict of Laws (15th Ed, 2018), Sweet & Maxwell, Chapter 29.

[183] MAS Notice TCA-N03 on Prevention of Money Laundering and Countering the Financing of Terrorism.

[184] Mutual Assistance in Criminal Matters Act (Cap. 190A, 2001 Rev Ed).

[185] Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016.

[186] IRAS, “AEOI e-Tax Guide” (2021).

[187] MAS, “Guidelines on the Regulation of Variable Capital Companies” (2020).

[188] OECD, “BEPS Actions” (2021).

[189] MAS, “Guide to Digital Token Offerings” (2020).

[190] Securities and Futures Act (Cap. 289, 2006 Rev Ed) s 2(1).

[191] Charities (Institutions of a Public Character) Regulations (Cap. 37, Rg 5, 2008 Rev Ed).

[192] MAS, “Guidelines on Environmental Risk Management for Asset Managers” (2020).

[193] Companies Act (Cap. 50, 2006 Rev Ed) s 386AC.

[194] Personal Data Protection Act 2012 (No. 26 of 2012).

[195] Variable Capital Companies Act 2018 (No. 44 of 2018).

[196] MAS, “Guidelines on the Regulation of Variable Capital Companies” (2020).

[197] Trustees (Amendment) Bill 2022.

[198] Trustees (Amendment) Bill 2022, Clause 4.

[199] MAS, “Guidelines on Prevention of Money Laundering and Countering the Financing of Terrorism” (2021).

[200] Trust Companies Act (Cap. 336, 2006 Rev Ed) s 47.

[201] MAS, “Project Ubin: Central Bank Digital Money using Distributed Ledger Technology” (2020).

[202] STEP Journal, “Blockchain and Trust Administration” (2021).

[203] MAS, “Guide to Digital Token Offerings” (2020).

[204] Payment Services Act 2019 (No. 2 of 2019).

[205] MAS, “Principles to Promote Fairness, Ethics, Accountability and Transparency (FEAT) in the Use of Artificial Intelligence and Data Analytics in Singapore’s Financial Sector” (2018).

[206] STEP Journal, “AI in Trust Administration” (2020).

[207] Law Reform Committee, Singapore Academy of Law, “Report on the Introduction of a Purpose Trust in Singapore” (2022).

[208] Tan Yock Lin, “The Law of Trusts in Singapore” (2021), LexisNexis, Chapter 3.

[209] Variable Capital Companies Act 2018 (No. 44 of 2018).

[210] STEP Journal, “Foundations in Common Law Jurisdictions” (2019).

[211] MAS, “Guidelines on Environmental Risk Management for Asset Managers” (2020).

[212] Global Impact Investing Network, “IRIS+ System” (2021).

[213] OECD, “BEPS Actions” (2021).

[214] MAS, “Guidelines on the Regulation of Variable Capital Companies” (2020).

[215] OECD, “Standard for Automatic Exchange of Financial Account Information in Tax Matters” (2021).

[216] Companies Act (Cap. 50, 2006 Rev Ed) s 386AC.

[217] MAS, “Financial Centre Development” (2021).

[218] Asian Private Banker, “2021 Singapore Private Banking Assets” (2021).

[219] STEP Journal, “Next Generation Wealth Transfer” (2020).

[220] MAS, “Guidelines on Environmental Risk Management for Asset Managers” (2020).

[221] STEP Journal, “Trusts for Mobile Families” (2019).

[222] Dicey, Morris & Collins on the Conflict of Laws (15th Ed, 2018), Sweet & Maxwell, Chapter 29.

[223] Personal Data Protection Act 2012 (No. 26 of 2012).

[224] MAS, “Technology Risk Management Guidelines” (2021).

[225] Singapore Trustees Association, “Professional Certification” (2021).

[226] STEP, “Code of Professional Conduct” (2020).

[227] STEP Journal, “Interdisciplinary Approach to Wealth Management” (2021).

[228] MAS, “Financial Sector Technology and Innovation Scheme” (2020).

[229] MAS, “RegTech Grant Scheme” (2021).

[230] ACRA, “XBRL Filing” (2021).