Since the release of the judgment in La Dolce Vita Fine Dining Company Ltd v Zhang Lan & Ors [2022] SGHC 287 (La Dolce Vita), ultra-high net worth clients, trust companies, wealth planners and private bankers have been concerned about the potential ramifications La Dolce Vita might have on existing and future trust structures in Singapore.
This article examines, and distils lessons from, the facts and the reasoning of the General Division of the Singapore High Court in La Dolce Vita. Crucially, the case highlights the importance of ensuring the proper settlement of assets into trusts. It also demonstrates the inverse relationship between control retained by the settlor over trust assets and asset protection capability of the trust – the more unfettered control the settlor has over the trust assets, the greater the impediment to the trust achieving its objective of asset protection.
If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:
SIM Bock Eng
Head – Specialist & Private Client Disputes
Partner – Private Wealth
d +65 6416 8108
e bockeng.sim@wongpartnership.com
Click here to view Bock Eng’s CV.
AW Wen Ni
Partner – Private Wealth
d +65 6416 6870
e wenni.aw@wongpartnership.com
Click here to view Wen Ni’s CV.