Typical HNW family scenarios: goals, structures and risks for five kinds of family

High-net-worth families start planning from very different places, but their problems fall into a few groups: assets that are too concentrated, residency and tax residence in flux, family members spread across several jurisdictions, a family that needs a governance mechanism, and accounts in two places that need a clear division of roles. This page uses five anonymous, hypothetical scenarios to illustrate an approach. They do not represent real clients and are not recommendations. Each scenario follows the same format: background, goals, possible structure, main risks and the professionals needed.

The five scenarios at a glance

The order of the table does not indicate importance. Most real families share features of two or three scenarios at once and should first map out the facts using the "five maps" in the Asset allocation framework.

Scenario 1: A manufacturing business owner with assets concentrated in mainland China

Background: The family's main assets are shares in a mainland manufacturing company and two or three properties in mainland China, with very few overseas assets. The company is considering a regional headquarters in Singapore to serve customers in Southeast Asia.

Goals: Reduce concentration in a single market and a single currency; keep the books for the company's overseas expansion separate from personal wealth planning; build liquidity for key-person risk and shareholder exits.

Possible structure: At company level, set up a Singapore company with its own accounts on the basis of genuine business. At personal level, first confirm a compliant source of funds and outbound route, then discuss how to allocate growth money and legacy money. Company and personal funds are not mixed.

Main risks: State Council Decree No. 837 has been in force since 1 July 2026 and covers resident individuals as investors; specific rules for outbound investment by resident individuals are to be issued separately by the competent authorities, and the latest published version applies. Under the Administrative Measures on Individual Foreign Exchange, individual capital-account foreign exchange business is managed according to the convertibility process, and SAFE branch documents state further that foreign exchange purchased by domestic individuals may not be used for capital-account items not yet opened up, such as buying property abroad, securities investment or buying life insurance. In addition, as a mainland tax resident, the owner must report foreign income between 1 March and 30 June of the following year. Jurisdictions: mainland China, Singapore.

Professionals needed: a mainland lawyer (outbound investment and foreign exchange compliance), tax advisers in both places, a Singapore corporate secretary and a bank.

Scenario 2: A newly relocated family that has just obtained an EP or PR

Background: One spouse is employed in Singapore on an Employment Pass, and the other spouse and the children have come too. The family still has property, deposits and some income in its former home.

Goals: Work out from which year the family becomes Singapore tax resident, how foreign income is treated, and whether reporting obligations in the former home still apply.

Possible structure: Start with a tax residence timetable; update CRS self-certifications with each financial institution to reflect the actual position; record foreign income, income received in Singapore and Singapore-sourced income separately.

Main risks: For foreigners, IRAS generally determines tax residence using rules such as staying or working in Singapore for 183 days or more in the previous calendar year. Foreign income received in Singapore by individuals is generally not taxed, except in cases such as income received through a Singapore partnership or income connected with Singapore employment. The former home may still treat the person as tax resident based on domicile or days of residence, creating dual tax residence that must be resolved under the tie-breaker rules of the relevant tax treaty, following the treaty text. Failing to update self-certifications promptly can result in information being exchanged to the wrong jurisdiction. Jurisdictions: Singapore, former home.

Professionals needed: tax advisers in Singapore and the former home; for residency applications and practical relocation matters, see hnwi.sg.

Scenario 3: A three-generation family with children studying abroad

Background: The grandparents live in mainland China, the parents work in Singapore, and the two children study in the UK and Australia respectively. The family needs to pay multi-currency tuition and living costs over many years, and the grandparents want to pass part of their assets directly to the grandchildren.

Goals: Ensure that multi-currency cash flow for education and retirement never runs dry; ensure that when grandchildren who are minors or young adults are beneficiaries, someone manages the assets according to clear rules.

Possible structure: Hold safety money in baskets by payment currency; split the legacy portion among a will, insurance nominations and a trust; each parent signs a Lasting Power of Attorney.

Main risks: Singapore deposit insurance does not cover foreign-currency deposits (SDIC). A trust nomination can name only a spouse and/or children, not grandchildren directly, and once made it cannot be changed unilaterally (LIA, Mar 2026), so arrangements that skip a generation usually require a trust. A large payout received directly by a minor may have no one to manage it. Assets located in other countries may be governed by local succession law. Jurisdictions: Singapore and the places where assets are located.

Professionals needed: an estate planning lawyer, a licensed trust company and a licensed insurance adviser. The relevant tools are covered in Succession and family governance.

Scenario 4: A family considering a single family office

Background: The family has sold part of its business, has substantial investable assets, and the second generation wants to take part in investment decisions. The family is considering a single family office in Singapore and looking into the Global Investor Programme (GIP).

Goals: Bring investments spread across several institutions under central management; establish a family investment committee and decision-making rules; assess whether to apply for fund tax incentives.

Possible structure: A family office management company plus a fund entity (a company or a VCC), with the fund entity opening a private bank account with an MAS-licensed institution; on the governance side, supported by a family charter and a trust.

Main risks: 13O/13U funds approved from 1 August 2026 must meet specified conditions, including minimum fund size and investment professionals, at application and at the end of each basis period (MAS FDD Cir 05/2026; full conditions at vccfund.sg); if they are not met, the incentive may lapse. From 15 June 2026, qualifying SFOs must notify MAS and file annual returns, with a transition period for existing SFOs until 15 June 2027 (MAS). If the family office option under the GIP is also being considered, processing takes about 12 months, and the documents are not a promise of approval (EDB, 5 May 2025); for the conditions, see Residency and tax residence and hnwi.sg. Banks will verify source of wealth and source of funds under MAS Notice 626.

Professionals needed: a fund lawyer, a tax adviser, a fund administrator, an auditor and a private bank. Full conditions are at vccfund.sg.

Scenario 5: A family based in both Hong Kong and Singapore

Background: The family has homes, accounts and insurance policies in both Hong Kong and Singapore; the two spouses each work mainly in a different one of the two cities, and the children go to school in Singapore.

Goals: Avoid holding the same type of asset twice in two places; give accounts and policies in each place a clear role; keep reporting consistent.

Possible structure: Allocate assets by money task rather than by location; for each account, record the holder, the tax residence and the basis used for self-certification.

Main risks: Both places implement CRS: Hong Kong from 30 June 2016, and Singapore has exchanged information since September 2018. Singapore applies the amended CRS from 1 January 2027, while Hong Kong proposes to implement it from 1 January 2028, subject to legislative progress. For Hong Kong CRS purposes, staying in Hong Kong for more than 180 days in a year of assessment, or more than 300 days over two consecutive years of assessment, among other tests, can make a person tax resident (Hong Kong IRD). This differs from Singapore's 183-day rule, so the same person may give different answers on self-certifications in the two places, and these must be reconciled. Jurisdictions: Hong Kong, Singapore, mainland China.

Professionals needed: tax advisers and lawyers in Hong Kong and Singapore; for product and account-opening differences, see the sites in the HK cluster.

When a cross-border structure is not suitable

In the following situations, it is usually better to resolve the underlying issues first rather than rush into a structure:

1. Most of the money will be needed in the short term: early surrender of policies, trusts and private funds all come with liquidity constraints.
2. The source of funds or source of wealth cannot be documented: Singapore financial institutions must verify source of wealth and source of funds, and failure to explain them directly affects account opening and insurance applications.
3. The aim is to "hide assets" or avoid reporting obligations: CRS reports by reference to the tax residence of account holders and controlling persons, and holdings through trusts and companies are looked through.
4. Family members do not agree on the goals: the more complex the structure, the more costly it is to change later.
5. No one is responsible for the annual review: residency, tax residence and regulations all change, and a structure needs ongoing maintenance.

To place your own family's situation within these scenarios, you can start by organising the facts with the 15-point self-check. If you would like this interpreted for your own situation, you can register your needs through the contact details on this site.