Professional, above 35, divorcee with 2 children age 6 & 8
Parents in their 60s stay together and help take care of his children. Dad has heart issue while mom has high blood.
Close relationship with younger brother who just got married
Insurance: $250,000 with acceleration critical illness benefit
Property1: HDB worths $450,000 (sole owner), stay in
Property2: condo worths $1.2 mil (sole owner), rental
1. f he passed on, the ex-spouse would take charge of his assets
2. As his ex-spouse might remarry, his children might not be able to adapt well in the new family if he passed on.
3. The monthly maintenance for his parents might increase (due to illness or disability) as they aged. At current, they need around $2,500/month
4. He would like his children to receive $1,000/month each for pocket money, tuition or enrichment classes before they graduate. University tuition fee provision will come from some endowment plans which he has previously purchased.
5.He like to pass down his properties to his children but want to ensure his parents can stay in as long as they survive.
1. Set up a customized Trust funded with insurance & property2
2. Purchased a $2 mil insurance to fund his children & parents monthly expenses.
3. Appointed parents as joint guardian with his ex-spouse (if she is still keen) for his children. As the parents might not be in good health at the time of his death, he named his younger brother as substitute guardian. Pay the guardian $500/month from the trust as well.
4. Purchased $200k critical illness cover & enhanced medical plan (100% reimbursement) for each child so that guardian does not have to be concerned.
5. As his parents do not have medical plans and not eligible to purchase. He set aside his condo rental income for his parents medical fees, if any. When his parents passed on, property2 will be sold and any unused rental income will be distributed to his children equally at the age of 30 or later.