A representative of ARM Trustees Limited, Henry Hollingdrake, has said that estate planning offers protection considering potential circumstances which may impact on a person’s wealth.
According to a statement on Friday titled ‘Most of your wealth may not make it to the next generation- Henry Hollingdrake’, he said this at a round table discussion.
He said, “An estate plan will help individuals and families with both local and international assets, investments, and business operations give careful consideration and properly document their holdings to ensure the assets are protected and passed on to future generations.
“This is effective, legally robust, practical and efficient. Estate planning offers you protection without borders, especially considering potential shifts in residency and citizenship, which may impact one’s wealth.
“Effective management and ownership of a business operation can also be safeguarded by setting up a succession plan.”
He stated that the chances of wealth being efficiently transferred successfully to the next generation without incurring liabilities and unnecessary risk combined with the ability to further invest free from any restraints and excessive taxation were more complicated now than ever before.
According to him, it was ironic given that today’s world offered many accessible tools and estate planning vehicles such as Wills, trusts and foundations.
He explained that in today’s world, owning valuable assets did not guarantee the value of the assets would be preserved when transferred to the next generation.
“In worse cases where there is intestate succession, i.e. no Will or mechanism in place to pass on wealth, this function is left to the state to decide,” he said.
Even if an estate plan was in place, he said, it would also need to provide adequate asset protection and future growth.
“One also needs guard against excessive professional fees charged against an estate that is fraught with complications on death,” he said.
He said ARM Trustees was helping families to understand what was required for an estate plan.
He emphasised the need to leverage estate planning tools like Wills, guardianship documentation, trusts and foundations, and the utilisation of relevant co-ordinated structure for larger and more complex estates.
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