What is a discretionary trust deed?
It is a legal document that establishes a trust in which the trustees have discretion over how and when to distribute income or assets among a class of beneficiaries.
Estate & Legacy Planning
Discretionary Trust Deed
Generate a discretionary trust deed giving trustees flexibility over distributions, reflecting the Trustees Act 1967 and Singapore's tax-neutral treatment of properly structured trusts.
- Create a discretionary trust deed for family assets
Create a discretionary trust deed establishing [Trust Name], with [Settlor Name] as settlor and [Trustee Name(s)] as trustees, for the benefit of [Beneficiary Names], covering assets including [Key Assets].
- Create a discretionary trust deed for business succession planning
Create a discretionary trust deed establishing [Trust Name], holding shares in [Business Name] on behalf of [Beneficiary Names], with [Trustee Name(s)] as trustees.
- Create a discretionary trust deed including an appointor role
Create a discretionary trust deed establishing [Trust Name], naming [Appointor Name] as appointor with the power to remove and replace trustees, and [Trustee Name(s)] as trustees for [Beneficiary Names].
Discretionary Trust Deed Generator (Singapore)
A discretionary trust deed is a legal document that establishes a trust in which the trustees have discretion over how and when to distribute income or assets among a class of beneficiaries. This free Singapore discretionary trust deed generator produces deeds for family asset holding, business succession planning, and structures that include an appointor role, reflecting the Trustees Act 1967 and Singapore's position as a wealth planning hub, where there is no capital gains tax or general inheritance tax to complicate trust distributions. It is designed for Singapore families and business owners setting up a trust structure with the help of their lawyer, particularly where a licensed trust company acts as professional trustee under the Trust Companies Act 2005. The generator lets you name the settlor, trustees, beneficiaries, and an optional appointor, and describe the assets to be held. Use it as a starting point before finalising the structure with legal and tax advice.
Frequently asked questions
How is a discretionary trust different from a fixed trust?
In a fixed trust, each beneficiary's entitlement is set in advance. In a discretionary trust, the trustees decide who receives what and when, within the terms of the deed.
Who are the key parties in a Singapore discretionary trust deed?
The settlor establishes the trust, the trustees manage it under the Trustees Act 1967, and the beneficiaries are the people who may benefit, often alongside an appointor who can remove and replace trustees.
Why is Singapore a popular place to set up a discretionary trust?
Singapore has no capital gains tax and no general inheritance or estate tax, which can simplify trust distributions, and licensed trust companies operate under a regulated framework under the Trust Companies Act 2005.
Why do families and businesses use discretionary trusts?
They are commonly used for asset protection and flexible succession planning, since trustees can adapt distributions to changing family or business circumstances.
Does a discretionary trust deed need to be reviewed by a lawyer?
Yes, given the significant legal and family implications, independent legal advice is strongly recommended before finalising a trust deed, especially where a licensed trustee is involved.