Glossary of HNW wealth planning terms (Chinese–English)

An umbrella term used in industry research for wealthy individuals; there is no single legal definition. Capgemini uses investable assets of at least US$1 million (excluding primary residence, collectibles and consumer durables) as its benchmark. Under Singapore law, the Accredited Investor threshold is more commonly used.

The wealthiest tier in industry research. Capgemini classifies those with investable assets of US$30 million or more as ultra-high-net-worth, and its 2026 report put their global number at about 250,000 in 2025 (4 Jun 2026). This is a research measure with no legal effect.

An investor category defined in section 4A of Singapore's Securities and Futures Act. An individual who meets any one of the tests — net personal assets exceeding S$2 million, net financial assets exceeding S$1 million, or income of at least S$300,000 in the preceding 12 months — and actively opts in can be treated as an AI by financial institutions.

The process by which a person who qualifies as an Accredited Investor expressly agrees with a financial institution to be treated as an AI; the relevant regulations took effect on 8 January 2019 (MAS). A person who has not opted in is treated as a retail investor even if they meet the thresholds; after opting in, some retail protections may no longer apply.

The value of an individual's total assets less liabilities, and one of the three Accredited Investor tests (exceeding S$2 million). The primary residence is counted at its value net of any secured loan, but only up to S$1 million (SFA s 4A(1A)).

The value of an individual's financial assets — deposits, securities, funds, cash-value insurance policies and the like — less related liabilities. Exceeding S$1 million meets one of the Accredited Investor tests. Real estate is not included.

Assets available for investment, usually excluding the primary residence, collectibles, consumables and consumer durables. Industry reports use it to define wealth tiers, and family planning often uses it to measure the total that can be assigned to different money tasks.

The process of dividing money across asset classes, currencies and jurisdictions according to goals, time horizon, risk tolerance and liquidity needs. This site first divides money into four tasks — operating and liquidity, safety, growth and legacy — and only then discusses the tools that carry them.

The risk that a single event causes a large loss because a family's wealth is too concentrated in one company, industry, market or currency. For business owners, the main concentration risk usually comes from shares in their own company and personal guarantees.

Buying and selling to bring a portfolio back to its target weights after market movements cause it to drift. MoneySense advises reviewing regularly and rebalancing in line with one's life stage, without prescribing a fixed frequency (updated 19 Oct 2026).

How quickly and at what cost an asset can be turned into cash without a significant loss of value. Private funds, unlisted shares and some insurance policies are illiquid if exited early, so planning should first secure the cash needed for short-term payments.

The direct origin of the money for a particular transaction or deposit, such as salary, dividends, proceeds from a share sale or proceeds from a property sale. Banks and insurers ask for supporting documents when an account is opened or a large payment is made.

How a client's entire body of assets was built up, including initial capital and gifts. Evidence listed in the Guidelines to MAS Notice 626 includes salary records and tax returns, bank statements, audited financial statements of controlled companies and trust deeds; politically exposed persons are subject to enhanced checks.

Singapore's central bank and integrated financial regulator, supervising banks, insurers, capital markets intermediaries, trust companies and fund managers. An institution being regulated by MAS does not mean that MAS guarantees or vouches for its products.

A work pass issued to foreign professionals, managers and executives, who must meet the age-graded minimum monthly salary published by MOM and pass the COMPASS points framework. An EP deals with residence and work; it does not by itself determine tax residence.

A personalised pass for high earners and top talent. One eligibility route is a fixed monthly salary of at least S$30,000, or the equivalent in foreign currency, over the past 12 consecutive months; it can be renewed for five years at a time (MOM, updated 14 Sep 2026).

The status of a foreigner permitted to live in Singapore long term. A PR generally needs a valid Re-Entry Permit while away from Singapore to keep the status. PR status is not the same as tax residence, which is still determined by where a person actually lives.

An investor route to PR for business owners and family office principals. Applicants must fall within an eligible category and choose one of three investment options (from a minimum of S$10 million) (EDB Factsheet, 5 May 2025). It is not a promise of approval.

The approval letter issued once a GIP application passes the initial assessment. EDB materials state that an AIP is valid for six months, during which the applicant must make the investment before proceeding to the next stage of assessment; an AIP is not final approval.

The permit a Singapore Permanent Resident needs to keep PR status while away from Singapore, issued by the Immigration & Checkpoints Authority (ICA). Whether it is renewed for someone living abroad long term depends on the authority's assessment and is separate from tax residence.

The anti-money laundering process by which a financial institution identifies and verifies the client and beneficial owners and understands the purpose of the relationship when it is established. High-net-worth clients usually also have to explain their source of funds and source of wealth.

More stringent due diligence for higher-risk clients, including senior management approval, verification of source of wealth and source of funds, and enhanced ongoing monitoring. It typically applies where the client is a politically exposed person or the transaction structure is complex (MAS Notice 626).

A person who holds or has held a prominent public function, together with their family members and close associates. A bank establishing a relationship with a PEP must obtain senior management approval, establish source of wealth and source of funds, and step up monitoring (MAS Notice 626).

Administered by the Singapore Deposit Insurance Corporation (SDIC), it covers eligible Singapore-dollar deposits up to S$100,000 per depositor per member institution (from 1 April 2024). Foreign-currency deposits, structured deposits and investment products are not covered.

A policy protection scheme administered by SDIC, covering policies issued in Singapore by licensed life insurers in Singapore. Guaranteed sums assured are capped at S$500,000 in aggregate, guaranteed surrender values at S$100,000 per life insured per insurer, and investment-linked benefits are not covered.

MAS's conduct expectations for financial institutions, emphasising suitable products, clear information and fair complaint handling for customers. Even after an Accredited Investor opts in, the institution must still assess whether a product is suitable for the client.

A person liable to tax as a resident in a jurisdiction. IRAS determines whether a foreigner is a Singapore tax resident mainly by rules such as whether they stayed or worked in Singapore for 183 days or more in the previous calendar year (updated 27 Apr 2026). It is distinct from nationality and immigration status.

A day-count test used by several jurisdictions to determine individual tax residence. Singapore looks at whether a person stayed or worked in Singapore for 183 days or more in the previous calendar year; mainland China looks at whether a person resided in China for an aggregate of 183 days or more in a tax year. Both may treat the same person as resident.

The principle of taxing mainly income sourced in, or received in, the jurisdiction. Foreign income received in Singapore by individuals is generally not taxed, except in cases such as income received through a Singapore partnership (IRAS, updated 2 Mar 2026).

Income arising outside the jurisdiction, such as foreign dividends, interest, rent and employment income. Whether it is taxable in Singapore depends on the nature of the income and how it is received; whether it is taxable in the country of residence depends on that country's tax law.

The gain from selling an asset for more than its cost. IRAS states that gains from selling property, shares and financial instruments are generally not taxed, but may be taxed as income if the activity is regarded as trading (based on frequency, motive, holding period and so on) (updated 27 Feb 2026).

A tax on a deceased person's estate. Singapore no longer levies estate duty for deaths on or after 15 February 2008 (IRAS); Hong Kong abolished it from 11 February 2006. Assets located in other jurisdictions, such as the United States, may still be subject to local estate tax.

A duty levied on top of Buyer's Stamp Duty when buying residential property in Singapore. It is 60% for foreigners buying any residential property and 65% for entities and trustees, while citizens and PRs pay different rates depending on how many properties they own (for purchases from 27 April 2023, IRAS).

An agreement between two jurisdictions that allocates taxing rights and reduces double taxation, usually including tie-breaker rules for tax residence and tax credit provisions. IRAS lists DTAs, limited DTAs and exchange-of-information arrangements with about 100 jurisdictions (updated 4 Feb 2026).

The OECD standard for the automatic exchange of financial account information for tax purposes. Financial institutions identify account holders' tax residence and report to the local tax authority, which exchanges the information with the country of residence. Singapore has exchanged information since September 2018 (IRAS).

An update to CRS that brings into scope new types of assets, products and intermediaries that can substitute for traditional financial products, and aligns CRS with CARF. Singapore's regulations were published on 11 August 2026 and apply from 1 January 2027, with exchanges expected to begin in 2028 (IRAS).

The form in which an account holder declares their tax residence and tax identification number to a financial institution; it is the basis of CRS reporting. It should be updated promptly when status or residence changes, and providing false information may have legal consequences.

A natural person who exercises control over an entity. Where the entity is a passive non-financial entity, the financial institution must identify the controlling persons and report by reference to their tax residence; for a trust, controlling persons include the settlor, trustee, protector and beneficiaries.

An insurance contract with a surrender value or loan value, which falls within the scope of CRS reporting. The cash value is the higher of the amount payable on surrender and the amount available as a loan, and there is no US$250,000 exemption threshold (IRAS e-Tax Guide, 11 Aug 2026).

A US law requiring foreign financial institutions to report accounts held by US persons. The Singapore–US Model 1 intergovernmental agreement took effect on 18 March 2015, and Singapore financial institutions report US accounts through IRAS by 31 May each year.

Custody, investment advisory, discretionary management and lending services that banks provide to high-net-worth clients. Private banks in Singapore are regulated by MAS; the industry introduced the Private Banking Code of Conduct in 2011, and client advisers must pass a competency assessment before giving advice.

An arrangement under which the client signs a mandate allowing a bank or fund manager to decide on trades within an agreed investment scope and risk limits. The client does not place each order but should review the investment guidelines, performance and fees regularly.

A loan secured on securities, funds or certain insurance policies the client holds with the bank. If the collateral falls in value or interest rates rise, the client may face margin calls or forced liquidation. It is a leveraged arrangement whose risks need separate assessment.

A legal arrangement under which a settlor transfers assets to a trustee, who holds and manages them for the beneficiaries under the trust instrument. Legal ownership is separated from beneficial interest, and the effect depends on how the trust is set up, the applicable law and the facts of each case.

The three parties to a trust: the settlor creates the trust and transfers assets into it; the trustee holds and manages the assets and owes fiduciary duties; the beneficiaries receive benefits under the trust instrument. Some trusts also appoint a protector to oversee the trustee.

A company holding a licence from MAS under the Trust Companies Act 2005 to provide services such as creating trusts, acting as trustee and trust administration. Banks, lawyers and accountants may be exempt in certain circumstances (MAS).

A company that acts as trustee only for the trusts of a single family, allowing family members to take part in trustee decisions. In Singapore it can be exempt from trust company licensing, but must engage a licensed trust company to meet anti-money laundering requirements (MAS).

An entity that manages the money of one family only and serves no third-party clients (MAS). As at end-2025, more than 2,000 SFOs were receiving tax incentives; from 15 June 2026, qualifying SFOs must notify MAS and file annual returns.

An entity providing investment management and family affairs services to several families. Because it manages third-party money, it usually needs the relevant fund management or capital markets services licence and is regulated by MAS.

Tax incentives under Singapore's Income Tax Act for specified investment income of qualifying funds. SFO funds applying from 1 August 2026 must meet specified conditions on fund size, investment professionals and local business spending (MAS FDD Cir 05/2026); full conditions are at vccfund.sg.

A Singapore corporate structure designed specifically for collective investment, which can be set up as an umbrella with multiple sub-funds. As at 31 December 2025, 1,406 VCCs and 3,443 sub-funds had been incorporated in or re-domiciled to Singapore (MAS Asset Management Survey 2025).

An arrangement that pools money from multiple investors for investment by a manager. Schemes constituted in Singapore must be authorised by MAS and those constituted overseas must be recognised; restricted schemes offered only to qualifying persons, or at not less than S$200,000 per transaction, can be exempt (MAS).

A philanthropy incentive for family offices managing 13O, 13OA or 13U funds: overseas donations made through qualifying local intermediaries can attract a 100% deduction for five years, capped at 40% of the donor's statutory income, subject to conditions such as additional local spending (MAS).

A legal document that deals with a person's estate after death. Singapore requires the testator to be at least 21, and the will to be in writing and signed before two witnesses; if a witness or the witness's spouse is a beneficiary, the gift to that witness may be void. CPF savings are not covered by a will.

Where a person dies without a valid will, the estate is distributed under the Intestate Succession Act. For example, where a spouse and children survive and the parents have died, the spouse receives half and the children share the other half equally; the Act does not apply to Muslims (MoneySense).

The court documents authorising an executor (where there is a will) or an administrator (where there is no will) to deal with the estate. Only once they are obtained can the deceased's bank accounts, shares, property and other assets be realised or transferred.

A deed by which a person aged 21 or above voluntarily appoints donees to make personal welfare and property and affairs decisions on their behalf if they lose mental capacity. It must be witnessed and certified by an LPA Certificate Issuer and registered with the Office of the Public Guardian (MSF).

A court order appointing a family member as deputy to make decisions for a person who has lost mental capacity without having made an LPA. The process usually takes longer than signing an LPA in advance, and the deputy's powers are limited by the court.

A nomination of policy proceeds under Singapore's Insurance Act that cannot be changed unilaterally and can name only a spouse and/or children. The proceeds are generally protected in bankruptcy, subject to statutory exceptions; to make the nomination, the policyowner must also be the life assured and be at least 18 (LIA, Mar 2026).

A beneficiary nomination that the policyowner can change at any time and that can name anyone. Assigning the policy revokes the nomination; where there is no valid nomination, the proceeds form part of the estate and are distributed under the will or the intestacy rules (LIA, Mar 2026).

The arrangement by which a CPF member names who receives their CPF savings after death. CPF savings do not form part of the estate and are not covered by a will; where no nomination has been made, they are distributed by the Public Trustee's Office under the intestacy rules.

The maximum period for which the law allows a trust to last. Section 32 of Singapore's Civil Law Act sets it at 100 years or a shorter period specified in the trust instrument, so long-term family trusts must arrange benefits and termination within that period.

A document recording the family's values, governance mechanisms, rules for members' involvement in the family business and dispute resolution. It is usually not legally enforceable in itself; key rules need to be written into the trust deed, shareholders' agreement or company constitution to be binding.

A governance body made up of representatives of family members, responsible for implementing the family charter, organising family meetings and coordinating next-generation education and philanthropy. Its responsibilities should be clearly separated in writing from those of the company board and the trustee.

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