Family Trust Planning is a complete estate planning roadmap to transfer hard-earned wealth to the right person at the right time, for the right purpose and without loss of value. It is not about benefitting the next generation(s) in mere dollars and cents, but most importantly about gifting them the wisdom and sufficient, but not excessive, resources that can make them successful in life in the much more competitive future. This roadmap also helps to preserve and manage wealth in the next generation(s) as well as to invest and grow wealth according to your wish.
Through Family Trust Planning, ordinary people can ensure their next generation continue to live in the chosen lifestyle and receive enough education to become successful in life, in the event of their untimely departure.
Through Family Trust Planning, wealthy families’ wealth can last beyond 3 generations, for example the families behind the Lee Kum Kee brand and Ford Motor, whose wealth had stretched beyond 3 generations.
Pillar 1 Will Writing — to decide WHO are your Beneficiaries, Executor and Children's Guardian
Pillar 2 Family Trust — to decide WHEN, HOW & WHAT PURPOSE you want to transfer your wealth
Pillar 3 Trust Funding — to decide HOW MUCH of your wealth you can transfer
Most of us may have heard someone say "my grandfather used to be very rich", at one time or another. And statistics have also shown that 70% of wealthy family lose their wealth at the second generation, and 90% at the third. So the old Chinese saying that ‘wealth does not pass 3 generations’ is indeed true for many families.
Without proper planning and assets transfer methodology, one’s hard-earned wealth, regardless of its size, can 'shrink' or can be exhausted at the immediate next generation or even before it can be passed on.
No Will
Heavy estate administration cost (legal fees, court fee, probate fee, etc.). The cost can get higher if the Will is being contested, as Will can be easily challenged by anyone including creditors
Settlement of liabilities: mortgages, hire purchase loans, personal loans, business loans etc.
Settlement of outstanding/short-paid income taxes
Mismanagement of estate by the appointed Executor
Mismanagement of inheritance by Beneficiaries
Mismanagement of inheritance by Trustee, when Beneficiaries are still minor
Ensure wealth is passed on to beneficiaries without 'shrinkage'
Protect assets from creditors’ claims
Allow someone to continue to have control over the wealth even after his/her passing
Maintain confidentiality of wealth and details of its distribution
Ensure the wisdom in wealth creation and wealth preservation to continue in the next generation
Manage, preserve and grow wealth so that wealth can last beyond 3 generations
Prevent wealth from falling into the wrong hands (unwanted beneficiaries or non-beneficiaries)
Ensure smooth wealth transfer even when husband and wife are not around at the same time
Lay down long-term care planning for special needs eg. for disabled family member, special child or for special person
Contribute to charitable organisation for philantropic purposes