Common Examples: setting up a testamentary trust to provide for elderly parents until they pass away
Presuming you have two surviving parents and want to set up a testamentary trust which provides a fixed sum of money (say S$3000) per month until they pass away. Thereafter, any remaining balance of the Trust Fund is to be distributed to a charity or relative(s).
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 parent as a Trust Beneficiary with the following payout:
- Give: Monthly
- Amount: SGD 3000
- Condition: Start when I pass away but stop when he/she passes away.
To key in the condition, you can either manually type out the condition OR click on the “choose from list” function to select commonly used conditions.
In this way, each parent will receive S$3000 per month until he/she passes away. When BOTH parent have passed away, any remaining balance of the Trust Fund will be distributed based on the "Remainder Beneficiary" section below.
In this example, add a charity as the Remainder Beneficiary and allocate 100%.
