Entrusting the assets of your business into a trust is an effective way to protect them against legal risks. This is also a great way to save taxes and avoid unnecessary legal fees. Once you set up a trust, you need to choose a trustee, who will be responsible for managing the assets of your trust and distributing the trust’s income among its beneficiaries. While you can choose any person as your trustee, it is always a good idea to opt for a corporate trustee.
Top Reasons to Opt for a Corporate Trustee
The important question is why you should choose a corporate trustee over a trusted family member. Here are some major reasons.
- Using the experience – A corporate trust usually employs experienced and certified professionals to provide corporate trust services. They have experience in managing different kinds of assets, such as, collective investment schemes, exchange-traded funds (ETFs), real estate investment trusts (REITs), corporate bonds, and debentures. They also have expertise in managing legal responsibilities and tax matters.
- Getting higher return on investments – When you choose corporate trust services, you can expect better return on investment. This is because experienced corporate trustees usually design a customised investment strategy for you in accordance with your financial objectives and risk appetite. They also make investment decisions on your behalf, so to maximize your returns.
- Ensuring safety and impartiality – An individual trustee can get influenced by family relationships and may take emotional decisions. In comparison, a corporate trustee would provide safe, reliable, and impartial professional services consistently for years.
- Reducing unnecessary costs – Professional corporate trust service providers undertake most of your routine legal tasks. For instance, they usually assess any claim made against the trust and defend the false claims on their own. If required, they even appear in court on behalf of you. This not only saves a lot of your time and energy, but also saves unnecessary legal fees. Similarly, they also handle many of your routine accounting tasks.
Using corporate trust services enables you to get multiple services from a single provider. An acclaimed trustee would help you make asset valuations, file income tax returns, prepare account statements, deal with retirement and estate planning issues, and provide recordkeeping services. Simply put, they will provide you all types of services required for administering the trust in a proper way.
Finally, it is important to choose the right service provider. If you are looking for a service in Singapore, you should choose a licensed trust company registered under the Trust Companies Act 2005. Make sure that the company has years of experience, a strong regional network, and a team of expert advisors.