The real trust threshold: It’s about purpose, not just net worth

Trusts are often misunderstood. Many still view them as structures designed solely for the ultra-wealthy, complex, exclusive, and out of reach. In reality, a trust setup is one of the most effective ways to manage, protect, and distribute assets according to your long-term goals. Across established wealth hubs such as Hong Kong and Singapore, where families often hold cross-border assets and prioritise long-term continuity, trusts remain a cornerstone of effective planning.

The real question isn’t whether you have “enough” to justify a trust, it’s whether you have a purpose that deserves to be protected, because the true threshold for establishing a trust is not financial. It’s intentional.

Is there a minimum requirement for a trust setup?

In major common law jurisdictions such as Hong Kong and Singapore, there is no statutory minimum asset level required to establish a trust. You won’t find a regulation that imposes a fixed entry value.

That said, practical considerations matter. A trust requires legal expertise and, depending on the structure, ongoing trust administration services. The real question is not “Can I afford it?” but “Does the structure and peace of mind it provides justify the cost?”

For one family, that value might come from placing a USD 100,000 life insurance policy in trust to secure a child’s education. For another, it might be the ability to avoid lengthy probate and unnecessary legal costs for future generations. Ultimately, the worth of a trust depends less on wealth and more on purpose.

While costs vary depending on complexity and professional advice, a trust setup is a long-term investment in security and structure rather than a fixed legal expense.

Who should consider setting up a trust?

You may already be ready to establish a trust if any of the following situations apply to you.

1. Your Family Structure Is Complex

Modern family dynamics often require more than a simple will. This is particularly relevant for families in Hong Kong and Singapore, where international mobility and multi-jurisdiction household structures are common. 

Setting up a family trust brings clarity and fairness when:

• blended families need to ensure assets pass to children while still providing for a surviving spouse. For example, establishing a family trust in Hong Kong is often used to ensure clarity when assets are intended for children from a first marriage.
• children with special needs must retain eligibility for benefits while receiving additional support
• spendthrift heirs would benefit from structured distributions instead of a lump sum

A well-designed trust setup provides the flexibility and control needed to support family harmony and long-term security.

2. You value privacy and efficiency
Unlike a will, which becomes public through probate, a trust allows assets to transfer privately and efficiently. Working with a trust company in Hong Kong and Singapore helps families maintain confidentiality, particularly when navigating cross border assets and probate processes.

Doing so helps avoid delays, costs, and public disclosure, ensuring your affairs remain confidential and that your beneficiaries receive what you intend without unnecessary complexity.

3. You want to protect what you’ve built
Trusts are not only about distribution — they’re about protection. This is a key consideration for entrepreneurs and professionals in Hong Kong and Singapore, where business interests and personal assets often span multiple jurisdictions.

Protection can apply:
•    for you: shielding assets from creditors or litigation
•    for your heirs: safeguarding inherited assets from divorce, creditors, or poor financial decisions

With the right trust administration services, your wealth can be managed and preserved with consistency and care across generations.

4. You own assets that carry strategic or emotional value
Sometimes the trigger for creating a trust isn’t total net worth but a specific asset that matters deeply. In Hong Kong and Singapore, property ownership — both domestic and overseas — is often a catalyst for trust planning due to the complexity of cross-border probate.

Examples include:
•    A family business: securing succession and continuity
•    Real estate in multiple countries: avoiding repeated, lengthy probate processes
•    A family property or heirloom: creating structured rules for preservation and use across generations

A tailored trust setup helps preserve both financial and emotional assets, ensuring they remain part of your family’s legacy.

Hong Kong and Singapore: Two leading trust jurisdictions

Hong Kong and Singapore are recognised as premier hubs for trust establishment, supported by mature legal systems, stable regulatory frameworks and international connectivity. Families in these centres often use trusts to manage regional properties, hold business interests, support overseas family members and ensure efficient cross-border estate planning. These practical realities make trust structures particularly valuable for preserving long-term family continuity. 

What questions should you ask before setting up a trust?

Before beginning a trust setup, reflect on what you want to protect and why. Ask yourself:

• What am I safeguarding?
• Who am I providing for?
• What challenges do I want to prevent for my family?

The answers to these questions will reveal whether you’ve crossed the real trust threshold.

Why purpose is the real qualification

A trust is more than a legal document, it’s an expression of intent. It provides clarity, protection, and continuity, ensuring that your assets are managed and distributed in line with your values and long-term wishes.

While cost is a valid consideration, it should never be the reason to delay creating a structure that offers stability and peace of mind. Ultimately, it isn’t your balance sheet that qualifies you for a trust — it’s your purpose.

Speak to an expert

If you’re considering a trust setup or wish to understand which structure best aligns with your goals, including how a Hong Kong or Singapore-based trust could support your long-term objectives, speak to our Private Wealth & Family Office Services team. Our specialists can help you identify the right approach to protect your assets and support your family’s future with clarity and confidence.

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained within this article without obtaining specific professional advice. Please contact Equiom Group to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.