Estate planning means identifying the best methods for the holding of assets, the transfer and distribution of the estate.
- Holding of assets: Who shall hold these assets temporarily or permanently? Is such an individual trustworthy, financially savvy, diligent, emotionally competent and possess the expertise to manage these assets? Is such an individual required to seek consent from all vested interest parties through their renunciation of their rights to be one or is this individual already empowered to do so? If no such person can be found, who should this role be outsource to?
- The transfer of assets: When will the transfer take places? Prior to death (Lifetime Transfer) or after death? If it is after death, is it immediate in lump sum or over a period of time based on certain conditions and events (testamentary trust)? What is the efficiency rate of transfer? How much assets will be leaked to creditors, tax authorities, legal fees, court fees and unnecessarily capital investment lost? Will assets be force-sold at distressed price or at best market price?
- Distribution of the estate: What are the assets that will be given to beneficiaries? How much in cash? Where will be source of funds? Are beneficiaries obligated to settle the debt of assets held as collateral or will the entire estate require to settle such collateralized debt? Are beneficiaries capable of handling these assets? Are beneficiaries too young, immature or simply too naïve?
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