There are many good reasons to set up a trust for your wealth distribution. The most common objective is to protect your loved ones from unforeseen circumstances and protect them from falling prey to undesirable scams or wrongful attention.
Susan’s case highlights this motivation to protect loved ones. She stayed single until the age of 40 years, then found her true love, got married and has been happily married ever since. Susan has had a successful career and accumulated a substantial amount of CPF savings, part of which she used to finance the purchase of a HDB flat before she got married.
Though estate planning was always on her mind, she could never find the time around her busy schedule to engage a professional to discuss estate planning matters. However, she became more proactive after she got married. Susan worried about her husband’s insouciant attitude towards money matters. The couple did not have any children, and she wanted to ensure that her husband would be taken care of in his old age in the event that she passed on.
One day, Susan chanced upon ProviTrust. Upon learning that it is a solution that facilitates CPF savings distribution, she was quick to act. She was aware that her accumulated CPF savings was as sizable as the value of the flat that she and her husband now resided in. While she intended to will her flat to her husband to ensure a roof over his head, she also wanted to lock in a good source of retirement income for him.
She believed ProviTrust would be the perfect vehicle to match her intentions. She turned to her sister to be her trustee. She knew that her sister would safeguard her CPF money and objectively honour her duty and role for the benefit of her husband if Susan passed away. Susan could ensure that her husband enjoyed a continuing income stream instead of a single lump- sum payment that would be subject to financial risk due to his lack of prudence in money matters.
Now, giving is a blessing. But giving to the right person, at the right time, with the right purpose, through the right value: That is wisdom. Susan was a wise lady. With ProviTrust, she could meet her main objective of taking care of her husband in the event of her passing. She turned a simple asset like CPF savings into a legacy asset for her loved one.
This article was first published in our newsletter, The Custodian Issue 23 on Oct, 2022. Click here to access our latest newsletter.