Case Study: Elderly Couple with Adult Children
Client’s Background:
Mrs K, now in her late 50s, has a husband, a 31-year old son and a 27-year old daughter. Her son has married and stayed at the place of his own. Her daughter, still single, is staying with them in her private property, jointly owned with her husband. They also owned a condo unit which is currently being rented out.
Her main concern is to ensure their daughter still have a place to stay after her and her husband’s demise. She is concerned that her daughter mismanage the inherited monies. Currently her daughter does not have a full-time job.
As she and her husband are still working, they have substantial savings build up over the years. They’d like to distribute their assets to their children. However, they are also mindful of, and do not wish that their savings go to their daughter-in-law. They do not mind to provide for their grandchildren in future (if any).
Outcome Achieved for Client:
- All assets go to the Testamentary Trust after her demise
- Provide $3,000/mth allowance for her daughter, with a condition that she gets a lump-sum gift of $24,000 if she manage to hold a job with regular income for every 2 years.
- Her daughter gets a place to stay even after her and her husband’s demise.
- Provide $5,000/month allowance for her son, until the Trust runs out. Her daughter-in-law do not have access to the Trust Funds that she had left for her son.
- Yearly gift of $18,000 for every grandchild in future (if any).
