Estate planning is a booming business in Singapore. Any high-net-worth individual knows the importance of preparing a solid estate plan. You must have heard and even reached about its importance financially. Now, deciding to create a trust overseas is a big thing. You’re asking yourself why should I choose a Singapore trust when there are trust companies located in my country? Why should you choose Singapore?
Estate tax is no funny business, especially if you have lots of assets under your wing which can all be subjected to the hefty estate tax. Take for example Japan’s estate tax is at 55%, the highest in the world and United States of America ranks fourth with 40%. Aside from estate tax problems, creditors and banks also pose a threat. These creditors can be people you borrowed from or people your kids borrowed from. Giving money outright to your kids can leave the money at risk from such creditors.
Trusts provide ample protection for assets. And Singapore elevates this protection by enforcing laws for the encouragement of safekeeping of HNWI wealth. Inheritance tax or estate tax has been abolished in the country, and trusts created in the country will not be subject to estate tax. The country’s low tax rate also ensures that any income generated by Trust will not be hit by high tax rates.
We have a consolidated list of reasons why you should choose Singapore as a place for setting up a trust and creating a solid asset protection plan.
Singapore has no estate tax. Unlike most developed countries, Singapore has decided to do away with estate tax. That is good news for you if you own properties in the country since it won’t suffer heavy deductions. Your beneficiaries won’t be plagued by tax worries as well since there’s no estate duty to worry about.
Singapore introduced the Real Estate Investment Trust which is an excellent way to make money grow for your beneficiaries. By investing in these REIT, you can be sure to pool income from establishments such as malls, shops and facilities. Your investment will be used to create these business establishments which will be rented out to shops and businessmen.
Aside from REIT, there are also other vehicles for investment trust companies like Rockwills can use to grow your wealth. Singapore is an international business hub with limitless options for investments.
Singapore boasts of a low tax rate with no estate tax and no capital gains. Personal income tax rates from Singapore start at 0% and goes up to 22% depending on the amount being discussed. And the cost of setting up a trust is not that expensive. You can protect your assets without much worry of being heavily taxed.
You can also set up asset protection trust for children with special needs as well as minors in Singapore. The Special Needs Trust Company (SNTC) in Singapore is a non-profit trust company that will hold your assets for you and your loved ones. SNTC will help it grow and help you leave more for your children with special needs.
Opening a Singapore Trust can help your assets grow without the risks of heavy tax. And it offers many vehicles of investment that you can use for increasing your monies. It’s better to keep your money in greener plains. And in the context of trusts, Singapore is the greener plain.