Weeks ago I received a call from a friend telling me that her uncle has just passed away in his sleep 2 days ago. The uncle was just in his early 40s, leaving behind the wife (not working) & 2 children (10 & 8 years old respectively) Perhaps some of you had relatives or friends who had been through a similar situation. Besides the emotional turmoil due to the loss of loved one, the next troubling matter is always the financial. To make the matter worse, some uninvited family members suddenly become very “concern” (especially if the decease is a wealthy person). This will always lead to a few common scenarios… 1. Wife is not financial savvy & have no idea how much have been leftover for the family. No Will has been written; all bank accounts & assets are suddenly frozen. Family suddenly caught in a situation with no cash flow. Insurance nomination given to children who is still minor (under 18), EPF nomination have not been done. The common questions asked are: How to unfreeze the estate? How long would it takes? Who will be entitled for the estate? What will happen to the Insurance monies? How about the EPF? 2. Will have been written, however assets may not meet liability, property are still under loan. Will there be much leftover after settling all the liabilities? 3. Husband has built a good fortune for the family, however wife may not be good in money management, children inheriting millions at their tender age of 21. Will they be matured enough to handle the money? 4. Husband a businessman, despite family are wealthy, however all assets are in the business leaving very little liquidity for the family. Can the wife manage the business? Will the business partner able to buy over the existing shares? At what price? Situation will be even worse during a common disaster where both husband and wife passed away together leaving the children behind. What would happen to the children? Who will be taking care of them? Should we leave this to chance? Or shall we do something about it? After seeing some of these unforeseen events happening to people around me, I realize that I have not done enough to reach out to people around me to share on how financial planning can help you to weather off all these unexpected circumstances. In this page I share post more information on financial planning & invite you to our Wealth Management Seminars to keep you updated & inform on how you can plan for your financials. Do share this page to the people you love & care!
Posted on: Fri, 20 Sep 2013 03:49:30 +0000
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