Some time ago I spoke to a friend whose brother was in a coma due to hemorrhage in the brain because of a stroke. He was in coma for many months already. I understand that he was in his late thirties, got two primary school children and has a wife who was a homemaker. The coma now qualifies under total and permanent disability. Hence, the patient qualified to claim Dependent Protection Scheme … [Read more...]
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Man lost almost his entire HDB property to siblings due to poor financial planning
I want to tell a story of how a person lost his entire HDB flat due to poor financial planning. No, it isn’t another property agent who rented his HDB illegally. The purpose of this blog article is to highlight the importance of financial planning but it is not meant to make fun of any persons. The story goes like this: Mr. Cheong (his real name) bought a HDB flat under joint-tenants with his … [Read more...]
How can I ensure that the Trustee of a trust does its “job”?
As Trustee holds significant responsibility, it is important that the settlor is satisfied that Trustee is able to fulfill its responsibilities. Some important considerations are: Is the Trustee a regulated entity by the Monetary Authority of Singapore or is the Trustee located in some offshore island with unfamiliar laws? Using a locally regulated Trustee is very useful as the settlor and … [Read more...]
How to protect your wealth against creditors
Professionals such as doctors, accountants, dentists and businessmen often face the risk of bankruptcy. This could either be due to negligent or simply due to the part and parcel of business risk. With a comprehensive approach to financial planning, it is possible to mitigate the financial devastation of such risk. What are the tools used for asset protection against creditors and how to use them? … [Read more...]
Is testamentary trust really necessary?
A testamentary trust is an express trust that is written into a Will but will only be setup after the testator dies and when the Grant of Probate is granted. If the estate is insolvent after all debts are paid, the testamentary trust cannot be setup. Majority of the Wills written are already creating implicit trust. For example, if you give $X to your children who are still minors, this money … [Read more...]
Who can be a Trustee and who regulates them?
A Trustee can be an individual or a trust company. It is better not to entrust your assets to individual trustees because such an individual can die (and you could end up having your assets commingled with his or her) or embezzle the money to the detriment of the beneficiaries. It is better to look for a trust company regulated by Monetary Authority of Singapore. In Singapore, all trust … [Read more...]
Is setting up a trust only for the rich? I get the impression it is for the high networth
Of course not! But it is true that it is very difficult to find a trust company willing to take in small business although I know of one that is willing to take in a trust size as small as $1000! However, I will only be able to introduce the trust company to clients who did they financial planning with me as I have no wish to make any recommendations unless I have done a comprehensive due … [Read more...]
Insufficient insurance coverage caused widow to downgrade flat when husband died one year after twins were born
Like any other ordinary family, Ms Tan Mei Mei, aged 35 and her husband Hwee Chye had a happy family of three children. Two of the children were twins born in 2004. Like any other family like yours and mine, they must have similar aspirations. Tragedy struck in 2005 - her husband died just one year after the twins were born leaving the widow to take care of herself and the three small children. … [Read more...]
Even those who wants to kill themselves must know financial planning
Someone called me to seek my advice. The caller’s sister committed suicide. I was told her husband “cheated” her and they were undergoing divorce proceeding. She could not take the pressure and killed herself. Her brother called me on what to do because assets are stuck. Apparently she wrote a DIY Will giving all her possessions to her mother but there was no Executor and probably no witness. So … [Read more...]
Estate Planning should not be optional
In this latest article for INVEST magazine, I wrote about two real cases of clients who wrote nonsensical Wills. Although their Wills were valid but the contents were peppered with problems which the clients did not realized. Many people treat estate planning too lightly. Majority do not even care about it. Those who do bother got a raw deal by not considering many practical issues. You can … [Read more...]
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