What if the biggest threat to your family’s wealth isn’t the market… but your family?
“What if the biggest threat to your family’s wealth isn’t the market… but your family?”
Today’s Sunday Times article really resonate with me, as I think back the work I’ve done for my clients. See the article below.
Most people spend decades building wealth.
Yet very few spend time planning what happens after they’re gone.
I’ve seen many people assume that having a Will is enough.
But what happens when a beneficiary is financially irresponsible?
What if a child goes through a divorce?
What if family members disagree on how assets should be distributed?
What if someone challenges your will in court?
Suddenly, the wealth you’ve spent a lifetime accumulating could become the source of family conflict.
This is why many affluent families choose to set up a trust.
A trust isn’t just for the ultra-wealthy. It is a powerful tool to:
1 Protect assets from potential creditor claims and family disputes.
2 Prevent your estate to become matrimonial assets of your children, losing 1/2 to their spouse in a divorce.
3 Control how and when beneficiaries receive their inheritance, you do not want to create instant millionaires.
4 Preserve wealth for future generations, to stretch distribution beyond your grandchildren.
5 Avoid unnecessary delays in estate administration.
6 Maintain privacy, as trust arrangements generally do not become public records, to preserve family harmony.
7 Provide continuity in the event of incapacity or unforeseen circumstances, where the trust is there to provide for you and not just your beneficiaries.
These are all the benefits that cannot be achieved with a Will alone.
The reality is that estate planning isn’t about preparing for death.
It’s about protecting the people you care about and preserving family harmony.
Many families focus heavily on growing their wealth.
Far fewer focus on protecting it.
If you have children, ageing parents, or significant assets, here’s a question:
Have you spent more time building your wealth, or planning how it will be passed on?
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Published By:
Tan Siak Lim
More than 20 years in the financial advisory business, focus on mainly help people achieve a comfortable retirement through portfolio management, with diversification to reduce the votaility and still achieving the required rate of return.
Also helps wealthy family (>$3m estate, including property, investment and insurance proceeds) pass on their wealth to future generations, minimizing the 3C, confusion, cost, and conflict. Estate planning is probably best done by a qualified experienced financial adviser rather than a lawyer. The lawyer is able to draft a will, but because he is not a financial adviser, he is usually unable to put comprehensive financial consideration into the design of the will. Will drafting is a mechanical process that software can easily generate, there is little value. It is the architecting of a wealth distribution strategy with creative financial products and ideas that is the real value.
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