Precepts Academy’s Associate Director, Eliss Chen, recently sat down with AEPP® Designee Isaac Low Ee Meng, who has been practising Estate and Financial Planning for decades in Singapore to gain insights into his approach to working with High Net Worth (HNW) clients. As a seasoned financial advisor and family wealth management specialist, Isaac has extensive experience in estate planning.
Eliss: How long have you been an AEPP® Designee?
Isaac: I’ve held the AEPP® designation since 2021.
Eliss: How do you deal with clients and prospects when they say they want a “simple” distribution?
Isaac: Many clients express a desire for simplicity. It’s important to empathize with that sentiment, even if we’ve already assessed their situation. However, simplicity is often elusive. Over a lifetime, people accumulate assets, build relationships, and make decisions with lasting impact. It’s rarely straightforward to do the estate planning, leading to drafting of a Will without a deeper understanding of the client’s circumstances.
Eliss: Can you share an example?
Isaac: Property succession is a good example. In Asian cultures, real estate is often a significant part of one’s estate. Distributing properties equally among children can lead to disagreements over management of the property. In Singapore, even a 1% share in a property gives an part share owner the right to block its sale. Legal action is possible but costly. time-consuming and at times, still remains in a grid lock.
Eliss: Wouldn’t it be easier to simply state in the Will that the properties should be sold?
Isaac: That’s one approach, but it may not be ideal. Selling could mean losing out on future capital appreciation of a prized property. Some properties—ancestral homes, Good Class Bungalows, or rare locations—hold sentimental or strategic value. A blanket instruction to sell might not serve the family’s best financial interests.
Eliss: What other aspects of property succession should be considered?
Isaac: Key considerations include who inherits the property and who gets to live in it. Should beneficiaries live in this property rent-free or at a discounted rate? While surviving spouses often live rent-free, this can cause tension among children after both parents pass, if one of the child continues to live rent-free in this house.
Eliss: How do you encourage HNW clients to share personal family details?
Isaac: In Singapore’s culture, privacy is highly valued, especially among HNW individuals and public figures. Yet, effective estate planning requires openness. Clients must be willing to share their values, beliefs, and intentions—not just their assets. It’s akin to a doctor-patient or counselor-client relationship. Trust and transparency are crucial.
Eliss: What if clients struggle to trust the estate planner?
Isaac: Estate planners must demonstrate both competence and discretion. We deal with sensitive financial and family matters, sometimes even market-sensitive information—especially when clients hold significant shares in public companies.Building trust is essential.
Eliss: How can estate planners build that trust?
Isaac: Word-of-mouth referrals are powerful. A strong track record and authenticity go a long way. When meeting a prospect, empathy is key. Clients need to feel understood and respected.
Eliss: What unique challenges do HNW families face in estate planning?
Isaac: Wealth brings its own complexities. Many HNW individuals worry about being exploited—whether people value them for who they are or what they own. Protecting loved ones from opportunists is a priority. Without safeguards, children may struggle with relationships or become overly guarded.
Eliss: That sounds like something out of a drama!
Isaac: It’s real. I know of young men from wealthy families who will choose partners from specific backgrounds, believing they’re less materialistic. Parents also worry about spoiling their children. Sometimes, they overcompensate for time spent building wealth, leading to a cycle of toxic giving.
Eliss: What are some key considerations in estate planning?
Isaac: Decisions include how much to place in trust, how much to distribute in lump sums or regular payments, and whether to donate to charity. A common concern is how to instill values like hard work and integrity in future generations. Business owners face additional challenges—should their children take over the family business? Even when both parties are ready, transitions can strain relationships. In such cases, it may be best for the older generation to take on an advisory role and focus on hobbies or philanthropy.
Eliss: Thank you, Isaac for such insightful sharing!
Isaac: You are welcome!
