Structure of Will with Equities as Major Asset

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#1
Dear Buddies

Need your advice. I want to write a will but majority of my assets are in equities (SGX). How do your think I should structure my will such that if there is any unforeseen demise, my stocks will not be sold at whatever price the market offers?

A few of my stocks are illiquid and I hold concentrated bets. Any sudden "sell-down" due to portfolio liquidation will definitely bring bad prices.

Your opinions are highly appreciated.

Thank you!
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#2
(11-03-2015, 02:30 PM)namralk Wrote: Dear Buddies

Need your advice. I want to write a will but majority of my assets are in equities (SGX). How do your think I should structure my will such that if there is any unforeseen demise, my stocks will not be sold at whatever price the market offers?

A few of my stocks are illiquid and I hold concentrated bets. Any sudden "sell-down" due to portfolio liquidation will definitely bring bad prices.

Your opinions are highly appreciated.

Thank you!

Will be best for you to consult a lawyer. Or if there is any lawyer here who specialized in will writing, he/she may help you.

If you insist in "non-lawyer" opinion (advice is very sensitive word), I will say rather than writing "20% of assets goes to so and so", you may want to word it as "20000 Singtel shares to be transferred to so and so's CDP account". Be specific, then no argument.

Disclaimer: I am in no position to give any opinion, and not liable for any loss or legal issues. So take it at your own risk.
I have nothing else to say.
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#3
(11-03-2015, 02:48 PM)NTL Wrote:
(11-03-2015, 02:30 PM)namralk Wrote: Dear Buddies

Need your advice. I want to write a will but majority of my assets are in equities (SGX). How do your think I should structure my will such that if there is any unforeseen demise, my stocks will not be sold at whatever price the market offers?

A few of my stocks are illiquid and I hold concentrated bets. Any sudden "sell-down" due to portfolio liquidation will definitely bring bad prices.

Your opinions are highly appreciated.

Thank you!

Will be best for you to consult a lawyer. Or if there is any lawyer here who specialized in will writing, he/she may help you.

If you insist in "non-lawyer" opinion (advice is very sensitive word), I will say rather than writing "20% of assets goes to so and so", you may want to word it as "20000 Singtel shares to be transferred to so and so's CDP account". Be specific, then no argument.

Disclaimer: I am in no position to give any opinion, and not liable for any loss or legal issues. So take it at your own risk.

Only by setting up a trust, you can carry out your wishes of how your estate is going to be managed, distributed, preserved or whatever. A will is mainly for willing your estate only.
Go and read more about trust. It can be simple or as complicated as you want.
i got the same headache too!
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#4
(11-03-2015, 02:30 PM)namralk Wrote: Dear Buddies

Need your advice. I want to write a will but majority of my assets are in equities (SGX). How do your think I should structure my will such that if there is any unforeseen demise, my stocks will not be sold at whatever price the market offers?

A few of my stocks are illiquid and I hold concentrated bets. Any sudden "sell-down" due to portfolio liquidation will definitely bring bad prices.

Your opinions are highly appreciated.

Thank you!

For concentrated investors like us, better get someone you trust to know what are your counters and how to handle them. Ignorant estate administrator may just sell or dump to sellers.

Also have some cash so that your beneficiary no need to sell your shares to pay for final expenses and living expenses.

problem with trust structure is that income are taxed....i think.

another point to note is CPFIA shares. I think these shares are under estate rather than CPF.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#5
(11-03-2015, 03:54 PM)opmi Wrote:
(11-03-2015, 02:30 PM)namralk Wrote: Dear Buddies

Need your advice. I want to write a will but majority of my assets are in equities (SGX). How do your think I should structure my will such that if there is any unforeseen demise, my stocks will not be sold at whatever price the market offers?

A few of my stocks are illiquid and I hold concentrated bets. Any sudden "sell-down" due to portfolio liquidation will definitely bring bad prices.

Your opinions are highly appreciated.

Thank you!

For concentrated investors like us, better get someone you trust to know what are your counters and how to handle them. Ignorant estate administrator may just sell or dump to sellers.

Also have some cash so that your beneficiary no need to sell your shares to pay for final expenses and living expenses.

problem with trust structure is that income are taxed....i think.

another point to note is CPFIA shares. I think these shares are under estate rather than CPF.

Yes, CPFIA is consider as part of your estate and NOT cover by CPF nomination
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#6
I overcome this situation by naming 2 veteran stock market pals in my Will. Specifically, I requested for the executor to seek the advise of these 2 friends on handling the shares I will be leaving behind.

As for Trust, your AUM need to be big enough to justify setting it up. I find a Trust useful only if both me and my wife pass away at the same time. Else, I will happily let my wife be executor and do what she "likes".

If you set up now, it will cost you a few thousand a year doing nothing much. A better option is to instruct for a Trust to be set up immeidately upon your death in the Will, and to get the executor to trsf your stocks in there. That will incur a few thousand a year from then. Secondly, unless all these stocks are REITs or bluechips giving stable yield, keep the shares in trust won't be helpful to your beneficiaries (you be better off selling them).
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#7
(11-03-2015, 04:23 PM)morten Wrote: I overcome this situation by naming 2 veteran stock market pals in my Will. Specifically, I requested for the executor to seek the advise of these 2 friends on handling the shares I will be leaving behind.

As for Trust, your AUM need to be big enough to justify setting it up. I find a Trust useful only if both me and my wife pass away at the same time. Else, I will happily let my wife be executor and do what she "likes".

If you set up now, it will cost you a few thousand a year doing nothing much. A better option is to instruct for a Trust to be set up immeidately upon your death in the Will, and to get the executor to trsf your stocks in there. That will incur a few thousand a year from then. Secondly, unless all these stocks are REITs or bluechips giving stable yield, keep the shares in trust won't be helpful to your beneficiaries (you be better off selling them).
There is such thing as a revocable trust. This type of trust is effective only after you leave behind an estate. Also if you choose one or two trusted kins or friends who are willing to be your trustees, then cost of maintaining your trust may be FOC or minimum in cost. Of course your trustees should be compensated for the costs incur by them for discharging your trust. Any opinion is most welcome.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#8
woas... so much assets!! Big Grin

how i wish i got this problem! Tongue
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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#9
(11-03-2015, 05:13 PM)Temperament Wrote: if you choose one or two trusted kins or friends who are willing to be your trustees, then cost of maintaining your trust may be FOC or minimum in cost. Of course your trustees should be compensated for the costs incur by them for discharging your trust. Any opinion is most welcome.

I do not recommend this. A friend trustee will hold the shares on your beneficiaries' behalf. While you may trust your friendly trustees, you cannot be sure if your beneficiaries will share the same confidence as you do.

If your AUM is big enough, go get a Trust setup with a Trust company with clear guidelines on who shld manage it and how it shld be disbursed to your n.o.k.

If your AUM is not big enough, then I think might as well just appoint 2 friends to advise / guide your Executor to sell the shares.
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#10
(11-03-2015, 05:59 PM)morten Wrote:
(11-03-2015, 05:13 PM)Temperament Wrote: if you choose one or two trusted kins or friends who are willing to be your trustees, then cost of maintaining your trust may be FOC or minimum in cost. Of course your trustees should be compensated for the costs incur by them for discharging your trust. Any opinion is most welcome.

I do not recommend this. A friend trustee will hold the shares on your beneficiaries' behalf. While you may trust your friendly trustees, you cannot be sure if your beneficiaries will share the same confidence as you do.

If your AUM is big enough, go get a Trust setup with a Trust company with clear guidelines on who shld manage it and how it shld be disbursed to your n.o.k.

If your AUM is not big enough, then I think might as well just appoint 2 friends to

advise / guide your Executor to sell the shares.
As far as i can understand, you can dictate whatever terms you wish in your trust. The trustee has to ensure the terms are carried out or else he is answerable to the beneficiary. The beneficiary is entitle to sue him in court if he deviated from the terms in the trust.
As for whether a trust needed to be vested by a law firm or trustee firm before it is valid in court I am not sure.
Any legal expert on trust like to say something?
Thanks!
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply


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