Attention to: Business owners, HDB & private property owners!
Discover Simple But Powerful Secrets To Ensure Your Estates Are Distributed Privately According To Your Wish… Without Breaking Your Family!
Estate Planning SingaporeCertified and Professional Estate Planner in Singapore
Are you aware that if there’s no will, your beneficiaries might need to pay Additional Buyer Stamp Duties (ABSD)?
We’ll show you the pitfalls of not planning critically into the distribution of your movable (e.g. cash in bank and stocks) and immovable (e.g. properties) assets.
There’s a famous saying:
If you fail to plan, you plan to fail.
The truth is:
If You Plan Wrongly, You Plan To Fail!
7 Poor Planning That Lead To Family Disputes
Poor Planning #1: A Will Is Enough
If you want the estate to be distributed privately, a will is insufficient.
Your estate will be part of the public record to go through probate in court. The will is open for debate when one party is unhappy with the outcome and it can be contested for the benefit of any claimant who believes that the will protocols are not complied.
The claimant could challenge when he/she believes that the testator (person who makes the will) is influenced/pressured by other parties (undue influence) or is of an unsound mind while drafting the will.
If the will is invalidated, the deceased’s estate will be distributed according to the Intestate Succession Act.
Poor Planning #2: Distribute Equally To Be Fair
What if one of the beneficiaries who inherits the share of the company/property wants to cash out while the other wants to hold?
All parties want the best monetary gain out of their inheritance and when there’s difference in views, conflict arises.
Is that what you want?
Poor Planning #3: My Spouse Will Take Care When I’m Gone
“I’ll will my estate to my spouse who will use my money to take care of my children”.
Do you want your monies to be given to stranger’s children!? Upon your departure, your spouse may remarry and will the estate to the new spouse. The monies goes to a stranger’s children and not yours!
What if your spouse mismanage the monies meant for the children?
How to ensure that your estate only goes to your children?
$1 million gone in one year after widow mismanaged the monies for the children. She was told not to touch the monies set aside for the children’s future but spent it on bad investments whom she trusted.
“I cannot survive with RM2,000 a month. I am thinking of going to work in Singapore. But I feel ashamed” said Madam Pusparani.
Poor Planning #4: Then.. Will To My Children Directly
Firstly, a minor beneficiary who is under 21 years old will not be able to inherit your estate.
Secondly, when your children attain the age of majority at 21 years old, do you think they understand how to handle your huge inheritance or will they splurge on their first Lamborgini?
How to have a control vehicle to timely distribute the estate to prevent squandering?
The Lamborghini driver was 22-year-old and crashed into a Mini Cooper and Toyota Estima in Sentosa.
Poor Planning #5: I’ll Will To My Illegitimate Child
Many biological parent(s) is/are advised to will to their illegitimate child as Intestate Succession Act defines “child” as a legitimated child including those legally adopted.
If your spouse is the Executor of your will, how will your spouse feel when distributing your assets to the illegitimate child who is out of the wedlock?
Is there a better alternative?
Poor Planning #6: My Spouse Will Inherit The Shares Of My Companies
Will other shareholders take advantage of the situation by liquidating the company because your spouse doesn’t know how to operate the business?
You left a valuable asset to your family but it is sabotaged by other shareholders of the company.
How to ensure that your assets are protected and given to your loved ones?
Poor Planning #7: I’ll Never Suffer From Mental-Related Illnesses
“The law will allow my spouse to take money from bank accounts, sell my properties if we don’t have enough monies and manage my finances”.
It’s a huge misconception!
Your accounts will be freeze and no one including your parents, spouse and children can act on your behalf when you are mentality incapacitated.
How to ensure that your trusted and appointed family members access to the accounts on your behalf?
Studies show that currently, 1 in 10 people who are aged 60 suffers from dementia and the figure is half for those above 85 years old in Singapore.
Prevent Family Conflicts With Better Planning Of Estates
Family Conflict #2: The Tong Garden family feud as the brother sues siblings for diverting business. The siblings say that the move was to save the father’s legacy.
Family Conflict #3: The family of former SA Tours boss, who is now dementia, was suing his long-time mistress alleging that she had fraudulently transferred his share of the tour company to herself.
These 3 cases of family conflicts due to personal, business and mental incapacity can be avoided with our secrets to estate planning.
It ensures safety vehicles are in place to prevent potential dispute.. it saves your family millions of dollars of court processes too!
We Have The Perfect Answer For You
You know intuitively that detailed planning must be done to ensure private distribution of assets including business succession and personal legacy.
Yet everyone whom you speak to advises you to do a will which you know is inadequate.
You’ve found a gold mine!
We’ll discuss and avoid potential disputes in our process to ensure 4 estate planning goals.
We’ll discuss the use of a will or trust structure to prevent and protect beneficiaries from misusing the inheritance.
The will structure is a direct distribution of the assets which may not be the most ideal while the trust structure allows timely management and control of inheritance.
Protecting your assets from your ex-spouse after divorce.
Your children cannot “divorce” their relationship with their parent (your ex-spouse). Therefore, the law may be in favour of your ex-spouse being the guardian or trustee of your assets to your children who is the legal beneficiaries.
We’ll ensure a structure to protect your assets from your ex-spouse and ensure that the inheritance is managed and distributed to your beneficiaries.
There are some tax concerns like Additional Buyer Stamp Duty (ABSD) and estate duties that’s worth discussing.
Willing your properties to your children whose a property owner may incur ABSD and we’ll explore setting up a property under trust.
Estate duty is a tax on the decease’s estate based on the total market value of the person’s assets.
In Singapore, estate duty is removed from 15th February 2008, However, estate duties may apply for the overseas properties depending on the local judiciary.
Do you know that the estate can be sued even the person has passed away?
We’ll discuss potential legal suits and ensure that your estate is protected to minimise leakages of wealth.
The estate of the Ferrari driver was sued by the parents of victim of $700k.
Are you aware that the estate has to pay the creditors/debts before distributing to the family members?
Some of the debts include credit cards, loans and taxes.
Do take note that joint-owners of the property have to assume the responsibility of the remaining mortgage loan.
Therefore, our estate plan will discuss the settlement of debts so that your family doesn’t have to bear your liabilities and more can be given to your loved ones.
Many immovable assets such as properties are illiquid. Property owners have built an empire which they want to pass down to the next generation which are good.
However, property owners often miss out that the beneficiaries might just practically want liquid assets such as cash.
We’ll discuss the most economical method to ensure high liquidity during asset distribution.
We met a case where the wife suddenly suffered a stroke and couldn’t recognised her husband. The husband assumed that being a legal spouse, he would have the legal right to her personal welfare and property affairs.
As the spouse hadn’t given the husband the power to act on her behalf, the husband had to apply with the court which was a painful process.
Proper estate planning can avoid lengthy court processes as the husband needed a court order to be appointed the deputy for the wife when she’s mentally incapacitated.
4 Estate Planning Goals
Security & Protection
Be certain that your estate is protected by minimising leakages of wealth through taxes or probate, creditors, legal suits, professional negligence, squandering beneficiaries, mental incapacity and marital issues.
Wealth Distribution & Accumulation
Manage your fortune by ensuring wealth accumulation, provision and maintenance for your family and the distribution of your estate to your beneficiaries.
Identify the best ways to hold the assets, transfer and distribution of the estate. It may include preparation of a will, creating a trust, setting up an Lasting Power of Attorney (LPA) and Advance Medical Directive (AMD).
Execution Of Estate Plan
Determine the most favourable persons or professionals (e.g. corporate trustee) when executing the estate plan to minimise potential conflict.
Why Choose An Estate Planner Over A Lawyer?
Detailed Planning Vs. Instructions Taking
The approach of an estate planner is to guide a process of detailed financial planning with the clients. The planning involves understanding assets such as insurance and debts (such as mortgages) and any concerns to ring-fence or protect the assets. Finally, a structure/plan is created with various financial tools such as wills or trusts to ensure that the concerns are addressed efficiently and effectively.
We’ve heard that most cases, the will making process is just a session of “taking instructions” from the clients. The only advise from the lawyers are whether it’s legally allowed.
Estate Planning Involves Legal & Financial Literacy
Our Best Kept Secrets To Estate Planning Revealed!
Set Up A Comprehensive Trust Structure To Ensure Generations Of Wealth
There are many descriptions about the third generation squandering the wealth obtained by the first and second generation like the famous Chinese saying: “Wealth never survives three generations” and the old proverb that says the “Shirtsleeves-To-Shirtsleeves” curse.
In our trust planning, we’ll review your family situation/business and create a strategy to motivate your future generations.
Increase Your Net-Worth
We use different financial instruments to maximise your wealth so that you’ll have more liquid assets such as cash for asset distribution.
Utilise Insurance To Confidentially Distribute Assets To People Whom You Care
Insurance nomination is a unique strategy to ensure private distribution of monies to your loved ones.
Take Advantage Of The Power Of Standby Trust
Standby trust is the most economical and inexpensive structure to ensure private distribution and management of assets for your beneficiaries.
Ensures Smooth Business Succession
Smooth business succession involves detailed planning such as understanding the business structure and model and creating a succession plan.
The plan may involve buy-sell agreement from different shareholders upon certain triggered event such as death, disability or retirement.
Avoid Conflict With Corporate Trustee
A corporate trustee has a fiduciary duty to act in the best interest of the beneficiaries and to comply with audit and account reporting to Monetary Authority of Singapore (MAS).
Explore The Use Of Testamentary Trust
Testamentary trust is useful to safeguard the inheritance from squandering beneficiaries as it can delay the distribution of the monies.
Manage By Corporate Trustee When Mental Incapacitated
To avoid conflict, a corporate trustee can be appointed to be the financial property and affairs donee while the loved ones be the personal welfare donee in the Lasting Power of Attorney (LPA) Form 2.
Why You Should Act Now?
These categories of people should urgently take action now:
- HDB and private property owners
- Married with minor children
- Married foreign spouse (foreigners cannot inherit a HDB)
- Divorce/single parent
- Business owners
- Special needs children or love ones who need extra attention
- Sole breadwinners
Many think that they are still young and their wealth isn’t huge enough to start estate planning.
We have a secret method to increase your wealth and net worth and hence you don’t have anymore excuse!
But frankly, it isn’t about you and how young or wealthy you are.
It’s about being accountable and responsible to your family and loved ones.
If accident hit, your family members suffer (not you) as they have to waste monies on lengthy and draggy (can be years) court processes.
I don’t care how successful or bright and successful in your lifetime. If stroke unexpectedly strikes, your loved ones are stuck with no solutions and blame you for the financial and mental stress due to the lack of planning.
Our Estate Planning Services
Our estate planners don’t believe in making a simple will. We ensure that all areas of disputes are avoided when drafting your will.
We ensure that the will that you’ve done is secured and free for tampering from greedy beneficiaries.
The business succession plan can mitigate any business conflict with your company shareholders and owners by drafting shareholders agreement.
How to Hire An Estate Planner?
Start the estate planning process by contacting us at (+65) 9380 2839 or you can enquiry below.
Do let us know your concerns and our professional estate planners will solve your worries.