Family Trust Planning

Have you ever in doubt?

Asset

Asset preservation & protection encompass various strategies to ensure the seamless transfer of property according to your wishes when you pass away. Family Trust offers a structured approach to safeguard your assets, providing clear instructions for their management and distribution. You can appoint your own beneficiaries or a bank-based trustee to hold on for beneficiaires upon attaining the legal age, ensuring that your assets are inherited as intended, protecting your family's interests for generations to come.

Q: What happens to your property rental income?

A: Rental income from properties held in the trust will continue to be collected by the trustee or depends on the client’s instructions as per their Letter of Wishes. The trustee will manage these funds according to the terms specified in the Letter of Wishes, ensuring they are used or distributed as per the client’s wishes.

Q: What about your own residential property?
A: Your own residential properties included in the trust will be managed and distributed according to the Letter of Wishes. This ensures that your properties are maintained and transferred to the beneficiaries you designate or can be hold on according to the client’s instructed clauses. Certain clients whom are facing bankruptcy or creditor risks are recommended to transfer their residential properties during their lifetime to ensure that they can still reside at their own homes despite these circumstances.

Q: What if a property is under joint names?
A: Properties held in joint names will be managed based on the type of joint ownership. If held as joint tenants with right of survivorship, the property will not automatically pass to the surviving joint owner. If held as tenants in common, your share can be transferred into the trust and distributed to the beneficiaries according to the Letter of Wishes.

Q: What if your current property is where your siblings stayed?
A: If your current property is where your siblings stayed, you can specify this arrangement in the Letter of Wishes. The trustee will ensure that your siblings have the right to continue residing in the property as directed. This can include granting them a life estate or specifying the duration and conditions under which they can stay, ensuring your wishes are honored.

Cash

Cash and Investments :

Cash and investments include cash in local and overseas bank accounts, cash in investments, and cash in the share market. Client can set-up an investment committee in their Family Trust to ensure their investment funds are invested according to the client’s preference and risk management. Managing cash and investments is a crucial part of estate planning, ensuring that your assets are protected and distributed according to your wishes after your passing.

CLIENT’S QUERY :

Cash in Local/Overseas Bank Accounts:
“How can I ensure my cash in local/overseas bank accounts is protected and distributed according to my wishes?”

Cash in Investments :

“How are my investment funds managed after my passing?”

Cash in the Share Market :

“How can my shares in the stock market be managed after my death?”

Business

A family trust is a legal structure designed to hold and manage business assets for the benefit of specified beneficiaries. It offers a way to ensure continuity, protect the business, and manage its operations in the event of the owner's incapacitation or death. There are different scenarios to consider: businesses owned entirely by an individual, businesses with partners, and shares in a listed company.

Business That I Own 100% :

In a scenario where an individual owns 100% of a business, the establishment of a family trust is crucial for ensuring the seamless transfer of ownership and management. The trust can specify how the business should be managed, designate a successor, and provide for the owner's family, ensuring that the business continues to operate effectively even in their absence.
CLIENT’S QUERY:
“If anything happens to me, how will my business be affected?”
“Is there a successor to continue my business?”
“If my children are still minors, how will the business continue?”
“If my wife is a housewife, how will the business continue?”
“How will the business continue in general?”

Business with a Business Partner :

When a business is co-owned with a partner, a family trust can help manage the transfer of ownership and responsibilities if one partner becomes incapacitated or passes away. It can outline how the remaining partner and the deceased partner's successors should interact, ensuring that the business operations remain stable and that the interests of both parties are protected.
CLIENT’S QUERY:-
“If anything happens to me, what happens to my business share?“
“Who is my successor, and can my spouse work with my existing partner?“
“Will my partner be happy to work with my successor/spouse/children?“
“Will my partner increase market share value and dilute my share portion?”
“How can I manage all my planning to avoid unforeseen circumstances?”

Listed Company :

For individuals holding shares in a listed company, a family trust can be used to protect and manage these shares, ensuring they are distributed according to the owner's wishes. This is particularly important to prevent scams and unauthorized sales, ensuring the shares' value is preserved for the benefit of the owner's family.
CLIENT’S QUERY:
“How can I protect and distribute my shares to my family members?”
“Are there any specific requirements based on a letter of wishes?”
“How can I avoid scams and protect my shares?”
“How can I preserve the value of the shares I have built over the years?”

Donation

DONATION-CHARITABLE TRUST :

During your lifetime, you may have been actively contributing to charitable causes. To ensure that these contributions continue after your passing, you can set up a charitable trust in your Letter Of Wishes. This allows you to outline your desires for continued support of the charities you care about.

Continuation of Charitable Contributions :

If you wish for your charitable contributions to continue after your lifetime, a charitable trust can be established. This trust will manage a portion of your estate, distributing funds to the designated charities according to the schedule and conditions you set.

Pre-arrangement for Family Members :
You can make pre-arrangements for your family members to continue charitable contributions. This can involve setting aside a specific fund within the trust that is designated for charitable donations, and instructing your family members on how these funds should be distributed.

CLIENT’S QUERY :
“How can I continue my charitable contributions after my lifetime?”
“Can I arrange for my family members to continue charitable donations?”

Asset Protection & Asset Preservation

Ensure your assets are safeguarded, particularly when family members are not yet capable of managing them independently. Family Assurance provides the security and peace of mind by allowing you to define your wishes clearly through a Trust Deed and Letter of Wishes, specify the beneficiaries of your trust.