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A relative of mine is recently looking to place his assets -- real estate, shares in listed and unlisted companies, cash -- in a Private Trust Company (which is like a pte ltd holding company). The reason being that he doesn't want his beneficiaries fighting over the assets when he is no longer around, while also ensuring that the assets can be preserved and continue to grow over time (which depends on the ability of the trustee).
I understand that PTCs need to be audited by a licensed trust company, for anti-money laundering reasons or what have you. Does anyone know the cost of the compliance requirements of a PTC? The total assets are probably about $10m, I'm not certain. I hope to get more information from the buddies here before I approach a lawyer or trust company to make sure I don't become carrot.
Thanks in advance. 
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(29-12-2016, 05:57 PM)karlmarx Wrote: I understand that PTCs need to be audited by a licensed trust company, for anti-money laundering reasons or what have you. Does anyone know the cost of the compliance requirements of a PTC? The total assets are probably about $10m, I'm not certain. I hope to get more information from the buddies here before I approach a lawyer or trust company to make sure I don't become carrot.
Thanks in advance.
Ask a few lawyers, the first consultation is usually free  Ditto the trust companies. They all want your business, so shop around. Have a rough idea of the type and value of the assets, what the trustee is supposed to do/not do and the conditions to wind up/dissolve the trust. That will allow the lawyers and trust companies to give you a ballpark quote for setup and running costs. If they don't give you an estimate, find another lawyer or trust company that will.
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29-12-2016, 08:58 PM
(This post was last modified: 29-12-2016, 09:04 PM by opmi.)
Don't think putting assets in PTC will prevent children to fight over assets.
as Long as children has different view of their 'fair share', there will
be infighting and bad blood.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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(29-12-2016, 08:58 PM)opmi Wrote: Don't think putting assets in PTC will prevent children to fight over assets.
as Long as children has different view of their 'fair share', there will
be infighting and bad blood.
Exactly! I think the word "children" should be substituted by "beneficiaries", which definitely complicates matters.
The other thing about trustees hor, is that unless the person is a professional fund manager (if so, he won't be really interested in managing $10m separately, IMHO), I suspect that growing the funds would be an elusive target especially if compared against the illustrious record of the settlor.....
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1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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(29-12-2016, 08:38 PM)d.o.g. Wrote: Ask a few lawyers, the first consultation is usually free Ditto the trust companies. They all want your business, so shop around. Have a rough idea of the type and value of the assets, what the trustee is supposed to do/not do and the conditions to wind up/dissolve the trust. That will allow the lawyers and trust companies to give you a ballpark quote for setup and running costs. If they don't give you an estimate, find another lawyer or trust company that will.
Thanks for this information, it is very helpful. Didn't know the first consultation is free.
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(29-12-2016, 08:58 PM)opmi Wrote: Don't think putting assets in PTC will prevent children to fight over assets.
as Long as children has different view of their 'fair share', there will
be infighting and bad blood.
No choice. You can distribute the assets now then there won't be a need for a trust. But then the concern is your beneficiaries may mismanage the assets and eventually blow it all on gambling, cars and women.
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(30-12-2016, 05:23 PM)soros Wrote: This information on trust tax may Help :
https://www.iras.gov.sg/IRASHome/uploade...ct2014.pdf
Thanks. Basically it seems PTCs are not too different from PteLtd under tax treatments.
Is there are any way to sidestep the capital gains tax for stocks?
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