Family Trust Planning

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.

The 3 Core Pillars of Family Trust Planning

  • 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

Some facts about Wealth 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.

Some of the common factors that contribute to shrinkage of wealth:
  • 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

Upon A Person’s Demise…

What Family Trust Planning can do?

  • 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