Preserving Wealth: Helping family generations through changing requirements and risk appetite

Client profile: A Singapore-based entrepreneur and third-generation business owner 

Challenges: Rebuilding the family business after the Asian financial crisis, and setting up structures to futureproof the client’s assets

Vistra services provided: Setting up of Trusts, Trustee services, PTC set up

Due to personal guarantees, most of the family’s bankable assets had to be used to settle outstanding debts. Years after, the son inherited the shares of various companies originally built up by his grandfather, which now has no significant value.

The son, who is residing in Singapore, at that time decided to rebuild the companies he inherited and was able to bring them back to blossom. In addition to these companies producing commodities, he wisely diversified his business into commodity trading and other related businesses activities.

Due to the experience of his father, he wanted to have a proper setup to achieve the following goals: 1) privacy, 2) asset protection, 3) inheritance planning.

Privacy was of top priority to the client, the client wanted to start fresh with a clear separation from his father’s past business experience. Then comes asset protection, which was key for him due to the enduring risks he was facing with the operating business post-financial crisis.  Lastly, his goals for inheritance planning was important to futureproof his assets for the protection of his young family.

To that end, the Vistra team assisted the client in setting up a Trust with two holding companies: one was used for holding the operating business, the second one was created to hold properties in Asia and Europe as well as bankable assets within various companies. Trustees services were also provided from our side.

Later on, our Trustees were replaced by a PTC setup under changed circumstances, which was jointly decided by the client and Vistra having obtained lawyers' opinion. Vistra is also on the client’s board and continues to provide expert advice on strategy and distributions. 

In the meantime, the client’s children have finished their education in Europe and are slowly starting to get acquainted with the family business. Our client is presently thinking of moving to Europe, which may be the start of further development of the structure.

With our professional team’s expertise and experience, Vistra can help families navigate changes and risks and play a leading role in the continued creation, preservation and transfer of wealth of the client.