Male, GM of a shipping company, 40s,
spouse is a housewife, 3 children age 4, 7 & 9. Wife is a generous person and not good in money management, tend to give their children whatever they want.
Mom is alive and healthy, dad passed away 5 years ago. Elder sister is a fund manager of an Asset Management Company
Cash: $500,000 ($300k solely owned, $200k in joint ac)
Insurance: $750k (reducing term ins. for 2nd property)
Property 1: HDB at Hougang worth $500k fully paid
Property 2: Private condo worth $1.2mil, for rental income, mortgage loan $750,000
1. In the event of common disasters, what will happen to their children?
2. In the event of common disaster, his wealth may be channel to his mother in law instead of his own mother.
3. If he dies, although there is enough money to take care of his family, he is hesitant in giving every single cent to his wife to take charge. He estimated that his family will need about $8k per month after his death for a period of 17 years. He also wanted to set aside $300k for wife’s retirement fund, children’s education fees of $150k each and any unforeseen medical bills of $50k.
4. Client is also concern that his wealth will be halved if wife remarries.
1. Nominated his wife to be sole beneficiary for CPF
2. Set up a stand by Trust to hold his future assets, assign his sister as the Protector of the Trust.
3. Purchase an insurance of $1.5mil and assigned into the Trust.
4. Upon his demise, pour over 50% of cash account, 100% of investment & 2nd property that is solely owned by client into the Trust.
5. He indicated that the rental collected by Rockwills will be given to the beneficiaries on a monthly basis ($3.5k – $4k) from the time he passed on till a time not less that 5 years after his death. This is to give allowance for market fluctuation before the house can be sold at a good price
6. Rockwills will ensure his family receives $8k per month (including the rental)
7. When the time come for the children tertiary education, Rockwills will furnished the $150k set aside for each child.
8. When wife reached 55, she will be receiving a lump sum of $300k provided that she didn’t remarry, else it will be distributed equally among his children.