Case Study: Young Couple with Young Children
Client Background:
Mr V runs a consultancy business and he is in his mid-40s. His wife works in an employed job, and not involved in his business. He has 2 children. As both are still in their early teens, it is too early to tell if they will take over his business. He wants to still provide for his children and his wife if he were to demise.
Other than the business, he owns the condo property which he stays in. He also own an overseas property, which is jointly held with his wife. He wants to let his wife decide if the overseas property needs to be liquidated or to keep for rental income. He wants to appoint his wife as the main executor for his estate.
Outcome Achieved for Client:
- Appoints his wife as Executor, and Precepts as the substitute
- Overseas property as a specific gift for his wife.
- Business to be wound up and debts and liabilities to be paid. Bought a keyman insurance for debt cancellation purposes.
- Condo property to be split into 3 shares: 50% for his wife, and each of his 2 children 25%.
- Rest of his assets goes into residuary estate, which is poured into the Testamentary Trust. His wife has the discretion to decide how to distribute the assets under his estate.
Note
Testator is currently still relatively young (mid-40s), and so is his wife. Fast forward 20 or 30 years later, it would not be advisable to appoint his spouse as the Executor, for health reasons. In this case, he was advised to have a backup Executor just in case.
