Common Examples: setting up a testamentary trust to provide for a single child until he/she reaches age XX

Presuming you have only one child and want to set up a testamentary trust which provides him with a fixed sum of money (say S$2000) per month until he reaches age 30. Thereafter, he will inherit 100% of the remaining balance of the Trust Fund.

However, there are two concerns:

1. As he is the sole beneficiary, based on the Saunders v Vautier rule, once he reaches age 21, he would be able to withdraw the full sum of the trust despite your intentions.
2. In the event that he dies before he turns 30, the monies will go to someone else, beyond your control.

In this case, you can appoint a third party, like a charity of your choice or another loved one, to be the remainder beneficiary.

To achieve this, in the “Appoint People” page, add a testamentary trust.

Choose the name of the trust, trustee and trustee powers accordingly.

In the “Trust Beneficiary section, add each of the children as a Trust Beneficiary with the following payouts:

• Give: Monthly
• Amount: SGD 2000
• Condition: Start when I pass away but stop when he/she reaches age 30.

AND

• Give: Lumpsum %
• Amount: 100%
• Condition: When he/she reaches age 30.

In the event he dies before 30, any remaining balance of the Trust Fund will be distributed based on the Remainder Beneficiary section below, which in this case, will be the charity. You can change this to put in the parents or a particular relative or friend instead as well.

And that's it!