A Quick Guide to the SNTC Trust
Posted on April 11, 2019 by Ann
This is a quick guide to the Special Needs Company (SNTC) Trust.
What is a Trust?
A Trust is a legal relationship in which a person or an institution (known as the Trustee) holds and manages assets for the benefit of another person (known as the Beneficiary).
Why set up a Trust?
Setting up a trust means that a professional organisation will ensure that your child continues to receive the support he or she needs (from assets under your will, insurance policies and CPF savings nomination). It helps you avoid placing the burden of legal and financial responsibilities on relatives or friends.
What is Special Needs Trust Company?
Special Needs Trust Company (SNTC) is the only non-profit trust company in Singapore. It is supported by the Ministry of Social and Family Development (MSF) and National Council of Social Service (NCSS).
SNTC allows you to put money and assets away in the trust you have set up to support your loved ones with special needs.
Why Set Up a Trust under SNTC?
1. The SNTC Case Managers are trained in social work.
2. The trust funds are held and invested by the Public Trustee.
3. The principal value of the trust funds is guaranteed by the Government.
How much does it cost?
There is a 90—100% subsidy by MSF.
How do I set up an SNTC Trust?
1. First, check if you are eligible for the scheme. To be eligible, the Beneficiary must:
- be a person with special needs;
- a Singapore citizen or PR; and
- residing in Singapore.
2. If you are eligible, arrange for a meeting with a Case Manager from SNTC. The Case Manager will assess the needs of your beneficiary, develop a Care Plan and help you write a Letter of Intent.
- The Care Plan is used to project the amount of trust funds you need to set aside to provide for your beneficiary, if you are no longer able or around to look after him/her.
- The Letter of Intent outlines how you would like the funds to be managed and disbursed to meet your beneficiary’s daily living needs.
3. Next, you will need to set up a Trust Account so that your beneficiary will be able to receive future gifts under your will, insurance and CPF savings nominations.
- Note that you will need a minimum sum of $5,000. You, other family members or friends can top up the trust fund anytime. If you are unable to raise enough money to set up an SNTC Trust, speak to your Case Manager for solutions.
When will the SNTC Trust be activated?
The SNTC Trust will be activated upon your death. SNTC will act according to your wishes in the Letter of Intent.
What happens after an SNTC Trust is activated?
SNTC will carry out the following actions:
1. Conduct a home visit:
SNTC will visit your home for an immediate needs assessment.
2. Oversee the transfer of assets into the Trust:
SNTC will work with the executors of your will, insurance companies and CPF Board to do this.
3. Disburse funds:
SNTC will disburse funds according to the Letter of Intent.
4. Conduct reviews:
SNTC will arrange for reviews with your appointed caregiver, to update the Care Plan and to verify the balance in the Trust against disbursements made during the year.
What will cause an SNTC Trust to be terminated?
The Trust will be terminated under the following circumstances.
• Upon the death of your beneficiary: SNTC will distribute any balance of the trust funds to other beneficiaries you name.
• The trust funds are used up before the death of your beneficiary.
• Your beneficiary no longer resides in Singapore. The balance of the funds will be transferred to another trust fund in the country he/she resides.
For more information, got to SNTC’s website.