What is Trust? (2)

          During the attestation of the trust instrument, only one witness is required to be part of the process of execution. The Trust settlement is effective once it is executed by the Settlor and the Trustee, unlike a Will.

          A trust can last as long as up to 21 years beyond the death of a person named in the trust or for a period of 80 years from the date of the trust instrument.

          Usually cash, life insurance, investments in unit trust, properties in sole name and listed and unlisted company shares are used to fund the setup of a Trust. What is important is that the assets placed into the trust would be able to fulfill the objectives of the trust that represent the intentions of the Settlor. The assets to be placed into the trust must be unencumbered.

          As the Settlor, you can revoke/ amend it as long as it is a Revocable Trust. Interests of such deceased Beneficiary can be dealt with accordingly under the terms of the Trust, which is why proper consultation is required to cover all situations in your planning.

          If it is your intention that all your children should be part of the Beneficiaries under the Trust, with the right wording and a comprehensively drafted Trust Deed, it is not necessary to amend the Trust Deed each time having a new baby.

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