With Asia on the cusp of a wave of inter-generational wealth succession, structuring of personal wealth through a trust is essential for the preservation of assets. Sourcing the best partner has never been more important.

The «Global Family Office Report 2018» recently published by UBS, in partnership with Campden Wealth Research, noted 70 percent of family offices expect a generational transfer in the next ten to 15 years. In Asia, more than half of Asia Pacific family offices have a succession plan in place or are developing succession plans.

After years of hard work to construct solid financial foundations and building prosperity, Brian Balleine (pictured above), Asia Regional Head at Butterfield Singapore, says: «When you are looking to effectively structure assets, to meet short and long-term objectives, you have to plan properly. Not only do you have to have it structured properly, but you have to have a health check on the structure on a regular basis.»

Neutral Solutions

With so much wealth in Asia newly created by entrepreneurs who are not necessarily familiar with managing complex legal and tax issues, it is vital for them to work with a trust company that does not have a conflict of interest. Butterfield Trust adheres to the principle that a neutral partner is in the best interests for the individual or the family who may otherwise be constantly approached with cross-selling.

«Trust solutions that genuinely demonstrate what is in the best interests for the individual or the family, more likely than not, it would be with neutral partners who have the ability to look at bespoke, individualized solutions that cater to each specialized circumstance, working in tandem with trusted advisors like private bankers and lawyers,» Balleine points out.

Managing Asian Wealth Anxiety

In many Asian countries, Common Reporting Standards (CRS) the internationally agreed standard for the exchange of financial account information, remain a complex issue. For business families spread across more than one Asian jurisdiction this issue can become a complex concern.

Under CRS, financial advisors and professional service providers are now required to automatically share certain sensitive information on assets and income.

Extensive Experience

Brian Balleine thinks Asian families have to accept that whatever they do in terms of wealth planning, there will increasingly be reporting requirements around what they structure. «Gone are the days where you could put together a structure, and there wouldn’t be any need to report this to the country in which you live. CRS has been a game changer in that sense,» he says.

Butterfield has extensive experience working with clients to comply with global information reporting demands including The Foreign Account Tax Compliance Act (FATCA) and CRS globally.

Local and Global Knowledge

Asian business owners with multi-jurisdictional operations face a myriad of regulatory challenges. With regulations on tax, legal liabilities and financial accountability moving at a rapid rate, professional advice is crucial in protecting wealth, particularly from a trusted advisor like a tax specialist or lawyer.

Years of effort and sacrifice could be squandered, wealth diluted or quickly dissolved, unless a structure is in place to protect and preserve wealth and assets from falling foul of unknown regulatory modifications. The unintentional fall-out can not only affect the incumbents but damage the succession plans for future generations.

Butterfield Trust vigilantly crafts its services in partnership with these advisors to take advantage of the unique solutions and legislation expertise available through their jurisdictions located in the leading financial and offshore hubs around the globe.

Focus on Asia

Through carefully matched business acquisitions such as the purchase of HSBC’s Bermuda's Trust and Investment arm and most recently its acquisition of Deutsche Bank's Global Trust Solutions business, Butterfield Trust is a professional fiduciary trust services provider.

Butterfield Trust’s Singapore office is the sixth in its international network. The Deutsche Bank team has now successfully integrated into Butterfield’s Singapore office and further strengthens the Asian expertise.

The strong Singapore team is made up of 20 experts who possess both a deep understanding of local and regional business demands and international experience.

  • Butterfield Trust is licensed and regulated by the Monetary Authority of Singapore and holds a Singapore Trust Business License. The firm is renowned for its award-winning work with business owners, high net worth families and financial advisors.