The four purposes of Legacy and Estate Planning are: ❌ ❌ ❌ ❌
Which of the following are areas that most concern HNWIs that they are least likely to be aware of?
Wealth Growth
Wealth Preservation
Wealth Accumulation
Wealth Distribution
Which of the following statements describes HNWI?
Estate planning restricted to mainly income protection and provision for outstanding liabilities
Typical solutions are Single Premium products with premium and/or portfolio financing for leveraging purposes
Wide range of assets ranging from real estate property (home and investment), equities, mutual funds or unit trusts, currencies and cash
Generally very senior management positions or typically business owners
Generally high income earner or with huge accumulated assets
Estate planning involves passing on wealth to the 2nd generation
Typical solutions are big size Regular Premium products and Single Premium products with premium financing for leveraging purposes
Estate planning involves complicated structures involving Offshore Trusts, Private Investment Companies and Family Offices
Successful people can control a lot of things in life but there are some that even the most powerful person may not necessarily have control over. They are: ❌ ❌ ❌ ❌ ❌ ❌
What are the three main factors of consideration in Wealth Preservation?
What are the 6 typical assets groups owned by HNWIs?
REAL ESTATE AND PROPERTIES
INVESTMENTS
DIGITAL GADGETS AND TECHNOLOGICAL EQUIPMENT
CURRENCIES - LOCAL AND FOREIGN
COIN COLLECTIONS
PERSONAL EFFECTS - JEWELLERY, ART, WATCHES, ETC.
BUSINESSES
INSURANCE
What if death occurs in the middle of an economic downturn? It affects:
MANAGEMENT STRATEGIES
SUCCESSION
HEALTH
WEALTH
DECISION MAKING
EMOTIONAL STRESS
Liquidity in Wealth Preservation is hampered by Estate and/or Inheritance duties, probate process (Grant of Probate - with wills, Letter of Administration - without will), and liquid and non-liquid assets.
What is the liquidity status of insurance policies done by first party (proposer and life assured is the same entity)?
Liquid
Not liquid
What is the liquidity status of insurance policies done by 3rd party (proposer and life assured are different entities)
Not Liquid
The four main leakages in Wealth Preservation refers to... (Select all that applies)
TAXES AND ESTATE DUTIES
INHERITANCE
LEGAL FEES
LOAN AND LIABILITIES
PERSONAL LOANS
FINAL EXPENSES
This statement is “Taxes & Estate Duties must be paid first before transfer of ownership can be completed” ...
Cost of legal fees depends on... (Click all that applies)
No. of inheritors
Existence of valid will
Type and complexity of assests
Geographical location of assets
A valid will helps to...
MAKES LIFE EASIER
ELIMINATE EMBIQUITY, UNCERTAINTY AND/OR CONFUSION
GUARANTEES EQUALIZATION OF WEALTH DISTRIBUTION
REDUCE UNNECESSARY LEGAL CONFLICTS BETWEEN BENEFICIARIES
MAINTAIN COHESION AMONG BENEFICIARIES
Communication among lawyers in different countries is one form of leakages where geographical location of assets diverse and complex.
Personal guarantees in business assets are one of the major big ticket items under loans and liabilities, in wealth preservation - leakages.
Personal guarantee (1) is ❌ for expansion of business (2) freuqently ❌residential real estate property as collateral (3) is a❌of personal responsibility for loan outside the liabilities of a business (4) failure in servicing a loan ❌ (5) - businessmen are ❌of its personal impact when business is profitable
Personal guarantees can disrupt the livelihood of the beneficiaries.
Amount to set aside for medical expenses can be calculated based on earnings, age, potential years remaining and current health status.
