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VOICEOVER:
This podcast channel is about you – successful international entrepreneurs- successful expats – successful investor, sponsored by HTJ.tax.
DERREN JOSEPH:
So with that, we can begin a hi, my name is Darren Joseph. Welcome to our latest live stream. This is Moores Rowland Tax Consultants or HTJ.tax. So we do this every week, actually. So we have topics tax-related that are of interest to our listenership or viewership. And, and if you want to see what’s coming up next, just have a look at our website, HTJ.tax. In addition to that on a website, we have probably a couple thousand free articles on international tax issues. We also probably have over a thousand videos on our YouTube channel. You just do a search for HTJ.tax.
So, this evening we have the pleasure of listening to and watching a presentation from Mr. Lim. So we’re going to talk about the importance of estate planning, you know, for, for boons foreigners or experts who reside in beautiful Singapore. So please be advised however that nothing we say here should really be construed as tax advice, right? These are considered a general conversation about general principles for advice it’s specific to needs. You probably want to engage a professional and have a detailed conversation with them to see what works for you in your situation. So again, this is not really legal or tax advice. It’s not legal or tax advice they’re considered education or maybe entertainment depending on how you look at it. So again, Ben, thanks for joining us. And without further ado, I turn you over to Mr. Lim. The stage is yours.
JUI SECK LIM:
Good afternoon. My pleasure. Thank you for hosting this session. Yes, in fact, Derren I know him since early or even just before 2000 before the COVID started. And then he was the one that I invited me to, or suggested rather to write books on this topic. So the COVID can become a natural driver for me to write my book. And then indeed, we have a call this author, this book, I think you, in Derren’s website, he has got this book is available on Amazon. So if you want a more and more details, because we will not have time to cover all the subject matters. So just a very fast, we have an a half an hour to cover a bottle. We what I want to cover, and then we have some time for Q and A.So with that digestion, let me share screen.
Sorry for the technical glitch. All right. Yeah. So basically we quickly uncovered this afternoon presentation on importance, urgency, or asset planning, and briefly mention what needs essay planning and type of asset assets usually cover in essay planning. And then a very important issue on dummy south issues. Especially this session is meant for expect in Singapore. You may be from us. It may be from new ropes, you know, but the missile always is a very important issue. So same apply to exit planning and then tuck off as planning instruments available in Singapore.
There are some issues that similar in other countries after that, and then touch on the asset protections solution available in Singapore for your asset in Singapore. And in fact also include assets overseas. If you, if you apply the appropriate solutions, Okay. Asset planning is not a one-time planning. Exit planning is basically is a lifetime. It goes our SS holding changes from time to time. Our family situation also grow or change from time to time. And your consideration priority also changed from time to time.
So that as any of this event change, you need to review your estate planning. So it’s not a one time, but in each material time, you have to look at your situation and what news concept as important for the, in the power. And you plan the appropriate instruments into your asset plan. Now, why is it important? I think there are a few things here. I just want to highlight the first four items, basically the negative aspect that hopefully you have to consider these negatives against you that time, why you should consider planning. The fifth one is really the positive part.
You know, what’s so good about having the asset plan in place. Yeah, no death and loss of mental capacities. You know, th these two items, this, I mean this whole event is nobody can control, but when it happens, it implied loose loss of this mental, these legal capacities. All right. Nobody know when this campaign is just like, COVID maybe a person next to you. Is that a public carrier? We do not know NAU can be affected. And if your own immune systems is, is not strong enough, you’ll be done by COVID.
Yeah. And then you have this existing medical condition that may complicate the issue in India. So many death cases since now, across the world. So things the same death and loss of money, capacity aria. So once you suffer, one of, either one of this, you lose legal capacity, you cannot lease out your house. You cannot sign a check, you cannot translate your car ownership, things like that. Yeah. So if you, if you do not have a asset plan in place, once you lose legal capacity, what does it means is you have to suffer the legal implications right now with asset planning.
That means you have your appointment of a legal representing teams, whether it’s your escalator, where they PCR on Doni, or whether you’re a trustee, you alternately have appointed, right. And then immediately when the events happen, they, they are, they can exercise that power they’ve granted to them and the carrier instructions. Yeah. But without then you have to go to a legal process to, to apply for someone from care for you or a family member to be your administrator. That’s in case of we’ll all to apply, to be your guardian guardian for your younger children.
And then in Los Medica, as that even country, you know, become your power Tony on become in Singapore, we call them Doni under that there’s lasting power, Tony. Yeah. So that will take a few months there’s if there, if the people we need to consult with to help you, but you know what come forward, he may take much longer than that. Then the process itself, you know, with a set plan in place, basically whoever, once the event strats you and then this legal was straight, we can just go and apply and go to the probate or, you know, take a few weeks for loving power in Singapore, basically immediate.
Once you get a medical report, say that I lose my capacity, my appointed person will have the power to access my bank account. Do one of us found the best interest of my interests, right? If without, that can take two months or even longer. Now that means also the other thing also is that with the estate plan already done, you repeat a fee, we appointed a person there. So you come in, there’s no week a fee, almost a very small fee administrative fee. Otherwise, you know, the, the probate process or the process to apply for deputy in case of a loss. And in that capacity, that can be eight to 10,000.
A friend of mine will suffer a loss of mental capacity that 10 years ago, 13 years ago, it caused his son to apply as deputy for him 6,000. That was 13 years ago. You mentioned the inflation, the inflation. So the idea that now easily is a 10,000 to get the ship approved. And then that is what six months now on a long delay. Now there’s also lead to other indications, right? Suffering to your family members. Now, so assets are frozen because until your legal representative is appointed by court, your assets are frozen.
You cannot transfer your car. Your house cannot be leased up. You know, your shares cannot be assaulted, know liquidated, things like that. And they’re all are frozen. Now one does, it means if you have people dependent on you, the cashflow will be affected, right? And then if they are depending on, on your cash to apply for their daily needs in the school, each student’s pocket money there they’ll be in trouble. Yeah. Suffering. And then because of that, invariably under this, this kind of stressful situation, people are on each and then the family member can be one quarters.
And then what about your business partner? You know, your spouse or your children, maybe arguing with your business partners, you know, the, the, the, the value of my, my daddy or my spouse, you know, the chair in a company, you know, we need money, you know, things like that. And then there’ll be issues of dispute, not just within that family, men, family, but also with business funders. Yeah. So really souring the relationship. So, yeah. So these are the, something, the negative part, No, from the financial aspect.
No, just now we mentioned the legal expenses, you know, you do, you do, if you do not have a set fanning, basically the legal cost will be much more expensive besides the timer. Yeah. And then it just on the site lose a market opportunity and the position of your asset, just like, you know, you’re going to try to sell you a car in Singapore, for example, the car owner or his legal representative must be the personally you can sign the, the, the application for transfer of ownership from the authority without authority. And then that kind of it is that the possession and assets, there are similarly, yes, there could be other, other property, you know, Hey, Judy in Singapore, friends is, you know, in fact those are least, least title properties.
They as close in FCR lease period, we can shop the, the value will become a lesser. So D position is your missionary, your factory, the same, you know, you the visit. So this is a serious things. If, if you do not have proper penny miss market opportunity, just, and I mentioned in a share because of market up and down, and then two months, three months, four months, five months in a, by the time you say, yes, I need a cash. You have miss opportunity and a worst case, some of the situations, because you, your family needs a cashflow and then your, for sale, your property or anything under force, we know you wouldn’t get a value that is a user expect.
So all these need to come really significant financial losses. Now one is good or peace of mind because if I have an estate plan done by deal, my LPM, I trust, you know, if I need to and whatever, and the, the instruments, yeah. My wishes can be done because it’s all written very clearly is a legal documents and whoever you’re appointed SCR legal incentive, we have to comply by law, your instructions. So, and then there’s no argument because everything is straightforward. The bank will just allow your legal representative to access your assets and do whatever that you instructed him.
So very, very quickly things can be done and then tell your loved ones will be for the fall will be cared for. Right. And then in this case also directly, you, you reduce suffering to your family members. And then also, you know, some kind of squabble among the family, friends, or family members or your family member with a business funders. And then of course, you know, Justin mentioned about those financial losses can be avoided. Okay. Quickly, typically when we consider a state planning because of the type of asset, they different consideration.
In all, in fact, I will sit at different challenges, business entities, and then real property. These two are more challenging because every country they have laws or regulations governing ownership and governing chances of these owners, even companies share. If you like, for example, I’m a friend who’s who has his wife is Filipino, right. Then the property in Philippines. If, if you are not Filipinos, there’s no way you can inherit, you know, and then different things like that. So these business entities, whether it is in Singapore were overseas and then same as property.
Yeah. So if you’re talking about expectancy example, if you have this property in Singapore, these are subjective sample rules. Yeah. And then personal variable collectibles, you know, insurance policies and then others and liquid assets. And then I think in the last two years, two or three years there started talking about another class of assets, digital assets, and then most recent one is NFT, you know, non fungible tokens. You don’t see everything on a screen, but it, it is value. Yeah. So I mean, this, this new class of asset can be quite challenging, you know?
So who can access to this digital account or the currency account? Yeah. Not items. Where do you keep it? How do you value it? You know, okay. Then don’t miss out issues. Now Domi sounds is different from nationality or citizenship is different from Peck’s residence is different on this. So-called habitual residents. Now I just quickly highlight this few things which are quite text related. But I think if you will have a specific question on this, I think you can ask Darren, who is expert in this matters, not just in Singapore tax rules or regulation, I think is a cross borders, because I think you are expected to expect your privy.
You know, you have to consider tax restaurant duties, obligations in the different jurisdictions. Yeah. So an it tax and duties. And of course I knew because of your demo cells is DOB different resident benefits. I read up on some of these, you know, like you, you S although you can be us citizen, but you are staying in different states. So, you know, different states D don’t we saw your dummy sounds, indifference data may have different benefits in a text benefit, you know, and, and, and healthcare benefits, for example.
Yeah. Even properties ownerships. Yeah. Okay. Then just now the company share, you know, the village to the business and the real properties. Now, every country techno to every country of the spastic rules. Yeah. The governing, the ownership, gambling transfer, governing gift, or inheritance transfer of ownership. So be careful on this better related to dummy south, you have be very careful this, you have to check with your embassy, or you have to ask some experts, you know, about yarn only song, because that’s very relevant on texts.
And as well as state planning issues, no type of asset planning instrument available in Singapore, just quickly, last thing, follow Tony. That’s under the mental capacity. Some country like in Australia, they call is a durable power of Tony or in, in Malaysia, they con general power of Tony in some other country, other durable or, or general public Tony <em></em> basically is a instrument that I can give instructions upon your legal representative to attend to my affair.
Should I lose mental capacities? Yeah. In Singapore, we follow the UK mental capacity. And so we call it lasting power. Now, wheels, you know, what is, what is real? Now I put a bracket S because you may need to consider different wheels in different countries, especially the reason to, to have multiple wheels, but in every jurisdiction, I understand. It’s just like in Singapore, in Singapore, you cannot have only one Singapore view. You cannot have multi-center multiples. Yeah. We are each Judy’s channel carefully one. Yeah. The reason you can, you, you need more than one wheel is acid.
If your asset in that particular jurisdiction. For example, I have many properties in Australia in order to expedite speedy, speedy, instead of resil, you know, my wheel in Singapore, you know, sequential, it takes a long time. So I need to probate the, the asset in different countries concurrently on my desk. Then you need to have multiple views, especially if the asset in the country constantly significant. Yeah. The same as, as Charles, Charles is basically about different purpose for the objective and after.
But yeah, we just could be like different trials, you know, for, for asset protection of a family of four business, but personally, no share transfer. So different, different job offers charity for what I, so each chance have a specific purpose and stick group, specific group of beneficiaries. So you may need more than one chance. Yeah. CPM nomination in Singapore, we have this CPF, I think in us or different country, you have some kind of fund that by, by law, you have to deposit money or contribute things in Malaysia, the EPS and sample and CPF, different country have different.
This kind of fun. So CPM nomination basically is how far the CPF money in Singapore CPF money is, is cannot be disputed by will. You cannot do people, your CPF money when you die by nomination and is a different regulation, same for insurance nominations. Now it’s ensure nomination in Singapore. Basically, if you have a policy in Singapore, life insurance policy, you can do initial nomination for that particular policy. One nomination is every for one policy.
So if you have two policy, three policy that you think they want to decide your specific beneficiaries, then each of these policy, you have to do a separate ensure nominations. Yeah. And then advanced medical directive. This is in Singapore. Basically, if you are in Singapore and then you under the condition, you are terminated. You and there’s no cure and you’re unconscious and you’re on life support system. The long-term they call is this extraordinary life sustaining treatments. When you are on that system, they’re holding site for you.
Now, if I make an AMD, basically is now unconscious. You know, if I’m under the condition, the three condition I mentioned, I will say that, please pull up because it’s costly. And that also is, you know, lead to much this traumatic, emotional suffering to your family member, whoever needs to make that decision. And then especially chance, you know, if a special needs, but maybe this is not applicable to you because especially each other in San Juan, they have some restriction only for Singaporean or Singapore, permanent residence. Resite in Singapore. So if you expect, but you have a sample PR status, and then your dependence is staying in Singapore, this is applicable.
Only the condition is Africa. Okay. Now we quickly, I hope I can finish the week in, in a half an hour, all this. Yeah. Okay. Now see if I have account, if you work in Singapore, not on contract, but is employment in sample before every one who am in Singapore, where does Singaporean or otherwise you will, are required to contribute, to have a CTF account and contribute your, your employer and yourself as an employee have to contract with a CPR.
And then that money is kept with the CPR ball. And then you have this CPM tongue, you know, Audrey account, special account, amended Medisave account. That is your money, but you cannot touch it except a few exceptions that the regulation. Now, what thing is CPF? Money is protected from creditors, from liabilities. However, I must caveat. You nominate the whoever beneficiary. Once you nominate and give to your beneficiary, then that is not, not protected because it depends on who your beneficiaries are in home.
He is, if he or she is bankrupt and all online have lively, whatever money, money you just built up to him, or her will be subject to his own liability, but it’s protected against your own liability so that his default is protected. Yeah. So before you take out your CPF money, Mandy, in mind, it is protected by the sample government trans nomination issue policies. Yeah. Just, I mentioned life insurance nomination. There are two types of Eastern nomination scheme in Singapore. One is called revokable revokable then is you, anytime you can make changes, right?
Those is, is, is no production. Yeah. But if you, if the other one is called nomination is also sometime they, to me E revokable that you cannot change. And then also need to subject to a few other things. You cannot be beneficiaries. And then also based a product period of five years, we’re going to, nobody know that I’m going to play in that five year summit. I’m going to be bankrupt. So I put this policy about 5 million, you know, and that some of that trust and nomination and nobody do that. So we didn’t find year of you setting up these trials. Nomination of <em></em> 5 million.
Yeah. You, you have, yeah. We have these three conditions. Yeah. It has to be trust nomination. You cannot be beneficiaries and is subject to five years, callback period. After these five years, nobody can touch your money except your beneficiaries. So that’s how you can protect your assets. Then of course, sample trust laws in the last few years, they’ve been allowing this asset protection trust. Yeah. And then qualifying for trust, subject to various requirements or conditions. Yeah.
Absolute property, Charles, you know, single property is very expensive. In fact, the very set we’ll see Singapore is the second, most expensive city in the world. They different from 20 years ago that Singapore is shopping paradise. You know, all the European and Americans, you know, come and spend the money in Singapore, but now is fighting. And so on. Same, our property is very expensive in Singapore. And then yeah, you can start the absolute poppy chance for your child, for example, but he might be a minor now, but you can set up by about the CCO or pasture cash. Now you can use a cash to pay for this property and then set up this absolute profits trust for the benefit of your son, ABC, you know, until he is 25 and then yeah.
Transfer the title to him. So that is one another way of protecting your child because once you’re put into this one is no more yours. It that no legal ownership, you spit a trustee until the vesting time that your own beneficiary, your child, for example, reached the testing age and then he will become a . Yeah. And that’s how you can protect. And then the other ones for business means, you know, with multiple assets yeah. At the moment I’m hindering, helping to do different clients have set up this thing. You’ve got business, you know, assets, but you want to keep it for a long time.
So private property trance company basically is a private trust company, but don’t require a trust company license. And like I like the company I’m working with is a licensed trustee, a trustee company licensed by MAs the monetary authority of Singapore. This under the law, proper trance company is a trust company. But specifically set up is provide trust services for your own company for your own assets. So under this, you set up this company and then your underlying a certain, you know, your business or your property, you can, you know, transfer into this channels under the private trance company.
And then, you know, it is normal. Yes. And hence you can be protected. Okay. Yeah. I think this is just quickly give an overview how your assets can be protected under the Singapore jurisdictions. Maybe now we can begin to open for questions.
DERREN JOSEPH:
Fantastic. Thanks. Thanks for that. Thanks. I really appreciate it. So what I’ll do before we jump in, I just want to, you know, just comment on what Mr. Lim said at the beginning. Yes. We did author a book, which is available on Amazon and what we can do today, but this one is in for ex-pats in general, but for American ex-pats in particular. So we look at it from both the us side and from the Singapore side, if, if you are viewing this today and you contact me through the website, I’ll be happy to give you a copy free of charge so we can give you a PDF copy. It can little copy or an audio audible copy. So we there’s an audible version of it as well. So just kind of throwing that in there. So back to the Q and a, now some of you did send some questions in advance. Thanks for doing that. If you want to ask any of you on zoom, you want to ask questions, you can just type in the box below. And similarly, if you’re on Facebook or LinkedIn, you can just type below and we’ll get to them in the order in which I see them. Right. So the first one is a question about stamp duty. So upon someone’s passing is stamp duty applicable. Like how does it work on the Singapore real estate?
JUI SECK LIM:
For real property in mobile property, particularly residential property, transfer of this property on death is no as the duty is free.
DERREN JOSEPH:
Right?
JUI SECK LIM:
Not even stamp duty.
DERREN JOSEPH:
Not even stamp duty. Okay. That’s great. And it’s regardless of who the recipient is, whether it’s a child or a friend or a spouse does matter,
JUI SECK LIM:
You have again, treasure to me, I’ll be happy to answer.
DERREN JOSEPH:
Okay. All right. That was great news to the person that’s asking about that. Oh, there’s a bit more morbid.
JUI SECK LIM:
Not only of Thompson one time, I, and still one time a week, I have some clients in a day, they set a trials, but we have to advise them. Of course you can transfer on death, you know, on debt. I transfer this as a chance and on transport benefit of so-and-so so-and-so so-and-so and then after 20 years, you know, then you transfer to, from the chance of a person that is not free, That’s not free. It’s only on testamentary. You state the, in your wheel that these will be helped. And that’s only in wheel. Then, then this stuff free for y’all on this side, Tasman three beneficiaries. They say my child is 18 years old, so he’s not qualified legally not allowed to own.
Then I said, you know that if, if I die, if my child is a belong, I belong to anyone. Then this is a property to be held on trust by my as good, the trustees until his 25 31, then transferred him. So this is different from the settler-specific property transfer or, you know, different channels that transfer on tighter. So there’s a slightly different testimony, transport, one trust or the beneficiary. That is a lot. And there’s no additional, no fee until your child will receive the title.
DERREN JOSEPH:
Okay. Understood. But otherwise, it’s just one time only
JUI SECK LIM:
One transfer.
DERREN JOSEPH:
Okay, fantastic. That’s good news. Thank you. I know my understanding of course. And you confirm that there’s no inheritance tax in Singapore at this time.
JUI SECK LIM:
Not yet.
DERREN JOSEPH:
Realized that that was a question, actually. So you, you foresaw the question. So we w I guess the person is asking you, what is your sense? Do you think that it will return? What I mean, no, one’s going to hold each. It would just get into your perspective.
JUI SECK LIM:
Okay. Caveat. I currently see it. My personal opinion is I think in 2008 Singapore government abolish this inhabitant texts, I send you the, in Singapore, the primary reason, I think number one is the inheritance tax is in a total tax revenue. Or the Singapore is very small portion. And Sam, Paul gunman look at the Malaysia, look at Hong Kong and many other, you know, judicial, then don’t have a CGT and Singapore one to be the financial center in Asia here. So really, you know, we want people, you know, I, I don’t want to cook names and they were quite a few Americans, you know, very wealthy people.
They give them their citizenship come to Singapore. So, you know, they don’t have paid 40% tax. Right. So, yes. And I personally, I think that’s why in the last Monday parliamentary debate on so-called to the wealth tax government is very concerned. Very careful. There are certain things we, yes, we need to look at how to balance a tax. But I think aside, I say, do deep concern. The answer is quite clear is, is, is gonna come to productive. So I think that when we’re receives that
DERREN JOSEPH:
Okay, that’s great. And as you mentioned, well, tax as well. So similarly with the wealth tax, it’s unlikely that
JUI SECK LIM:
No, the wealth tax in Singapore, there are a few things. Okay. I think about bungalow, you know, they’re going to impose a more property tax Dabble and depend on the value of the property context. For example, you have a luxury car seats, you can afford a luxury car, I’ve got a Textio mall and then very clear, you know, so I mean, something is very straightforward and then they make it this one. Yeah. So these are two of the few things that is what a wealth tax differential you can afford you pay.
DERREN JOSEPH:
Okay. Understood. Thanks for clarifying that. So next question. Oh, the probate process, typically, I guess I know it depends on the nature of the assets and stuff like that, but typically how long is the probate process take in Singapore?
JUI SECK LIM:
We’ve will valid will subject to no contest. Now, all these caveats, you know how Mr. Lee is a lot contest that once you contest, you know, you have the best written, you can be contested and subject to no contest the appropriate. Within three weeks, my mother, I was at a scooter for my mother’s within three weeks and my lawyer did it. But so that is typical. I would say within one month of a, depending on how the button is the con, because copy is always many cases. And, but typically family con or we’ll probably, I think, three to four weeks is, should get the other clear.
DERREN JOSEPH:
Yeah. Okay. That’s amazing. So within a month that that’s,
JUI SECK LIM:
We didn’t mind.
DERRENJOSEPH:
Very efficient, very efficient,
JUI SECK LIM:
Sorry, because of that, I think because an asset plenty always need to think of our cashflow. So knowing this, you know, that you know, that they make sure they got a bank account and it’s other joint bank account, or your family member have a bank account that have sufficient cash that can last one month. I mean, I mean the reality, otherwise, you know, suddenly you’re with what a probate possibly, or nobody can, can touch your bank, account money. Everybody has cell suffering. So I think you always, but anyway, in financial planning, we always tell our clients, you know, make sure that you have emergency cash of six months one year and not just in personally man, because it possibly, you know, spread out to your spouse.So always someone that can access the emergency cash.
DERREN JOSEPH:
Okay. So I I’d actually like to ask the question based on that, in terms of that liquidity piece, suppose the family is short of cash. Do you actually need an attorney? Like I know in some jurisdictions, the probate process, you really need a lawyer or some can someone can the family walk through the probate process on their own without needing to hire a professional,
JUI SECK LIM:
Depending on the family situation in Singapore, they have this and the loss of sanity. They have a group of lawyers doing service for mono helps. But anyway, is the probate process is, is usually, is not expensive like Mike Case or, you know, I know there’s lawyer, but typically a probate, a straightforward and a no contest. We will the probate probably between 2005 to 3005. And then also the lawyer, usually that I know they are not, they’re not asking you to pay cash upfront, basically pick your service. You know, I mean, because you can’t run away, you engage people service. And I, bill you and enter usually is after the event, especially after passing one person, you’ve got a funeral issue, many other things. I mean the lawyer who is, I mean, it should be customer centric, right? I think in service, in the truth, they come and century knowing the difficult situation don’t press on cash. You don’t pay. I don’t sell, I think the lawyer Singapore, quite reasonable. And then typically that I know about quite a few cases of find friends, basically a family member, someone will pay for us and then subsequently, you know, clean back from the estate of the disease. I mean, this is really the practical way.
DERREN JOSEPH:
Okay. That’s good to know, because I know in some of the jurisdictions, the lawyer won’t pick up their pen, A routine, you need to put a routine retainer, you know, B to B. So this is good to know. I just saw a new question pop up below from Mr. To Jerry. So today Roland Abramovich was sanctioned by the UK government. How can a business person protect their, I guess, protect their assets in, in Singapore and in a situation like that. If another government is sanctioning their assets, that sounds a bit political.
JUI SECK LIM:
A change of government in Singapore.
DERREN JOSEPH:
No. So I guess in, in this case, this, the person that they mentioned is so-called Russian oligarch. And so in the UK, there was a court judgment that sanctioned this, all the gods assets. Now let’s assume that the oligarch may have assets in Singapore. Is there any way of a situation like that? Protecting the assets in Singapore when another government may want to sanction or freeze it or something like that? It’s an unusual scenario.
JUI SECK LIM:
Okay. I answer in two to situations. Number one is no estate planning done beforehand. There’s very clear. I think the sample make the stand Singapore is it has support the sanctions of, you know, even the four bang is for Russian bank example is already, you know, effector. So that is very clear, but, and that is why the important asset planning is you have to do it beforehand. If you want a businessman and you think they own four tango assets, the instruments are available and the rules allow you to set up, do a proper, asset plan in both costs today. We don’t have time to go into detail how you do it, but there are ways, you know, earlier I mentioned, you know, in the fight, I could agree of assets in our business, real property.
Yeah. Somehow you can Include in your estate planning before we got asset planning. Once you, once, once the, if you don’t have asset planning, the rule come, the law change on the . You are not protected, but are this light, this side of the line you already have, you are no longer the owner, asset planning. Basically, you preplan that certain asset protection, you already transferred your legal title, but you still can control, you know, your investment. And so you still can control because in trance you can retain control all of the trust assets, but you are not an ordinance.So the law is very clear and NCR point is quite by law neutral in that sense as only as important within the law. Yes, You have protected.
DERREN JOSEPH:
Okay. So the message Mr. To Jerry said, thank you. So that answers your question. So the, the point is the takeaway. If I were to summarize the takeaway here is really to be proactive. If you proactive in engaging an estate planning, professional, like, like yourself, Mr. Lim, you can put measures in place to protect assets from any unforeseen circumstances that might occur to yourself, or, you know, change in policy politics, wherever you may be, wherever you may be exposed. So it’s about being proactive. Okay.
JUI SECK LIM:
Maybe I just, I just share a little bit on this thing. There’s a company, for example, I’m dealing with a friend now, now he owns a company in, in country. I don’t know, mentioned a country outside Singapore, but he can set up a holding company in Singapore to a whole DSR overseas company and then, you know, put in the private trust company so that he can, you know, decided the devotion of benefits or his family members, or even you can do charities. And there’s two things under a private trust company assets underlying, and all the beneficiaries must be a related person or charity, but that can only these two things. Yeah. So yeah, so the rules are, so you can set up, even if they have foreign assets, you could pop this and overseas, you can structure company to hold a property. But the old holding, you know, the shareholder is in a Singapore holding company.
DERREN JOSEPH:
Right. Which, which will be protected by Singapore as law protective. Okay, fantastic. That’s good to know. Okay. Another question that we got is about Singapore wills. So of course there’s the option of registering a will in Singapore. Do you advise that all wills be registered? Like what are the pros and cons of that registration process?
JUI SECK LIM:
Daughter, caveat that again, otherwise the Singapore law associate law society mean not me. Okay. These, these are wheeled registrar in Singapore now is under the sample law academy. They are managing these registered register. All right. Now, when this we register basically only capture four pins. Linda is it is, is, I mean, I’m the set lot. I, I mean, this will, on one day, one day, you know, every week might be data that let us be written by law company or written by a real company, ABC. And then, whereas this will not kept in my home. Or I kept that in a DBS pain, CR is only just for information, not the wheel itself. Right. And then one is the purpose of this information. Visitors will register basically in case on the contest, easiest alas wheel. But my question is next year, I, I forgot to register now waste, which is my latest wheel. So to me, it’s quite elephant. And then don’t forget every deposit of $50 And you under search and under $20, you know, a family member of under such weather, I got a view that your costs money. So to me is what’s on, there’s no guarantee, whatever information that system down there is the lifters wheel that I have.
And every, every replacement, every reregistration is always costs money. So to me it doesn’t fit. But the more important thing to me in my practice always advisement is where do you keep your view? I think they are a company that is offering this a wheel custody service lifetime. We’ve done studies and they’ve got property arrangement that I know your executer or your family member can with proper, or, I mean, receive authorization. Can they can, you know, retrieve the wheel. And then these are waterproof. These are proof and fireproof and you name it, you know? And why are you going to register? Sorry, but yes, there’s a register. But to me, I personally, I, I don’t do that.
DERREN JOSEPH:
Okay. So th the pros and cons did, but so I guess everyone needs to come up with their own point of view and it will be, it’ll be helpful if they consult someone like yourself, who kind of understands the nuances of it and, you know, to help make that decision. Okay. Gotcha. Okay. I have another question about trust. So someone is saying that there’s this perception that trust of, for people who are very, very wealthy, like a billionaire or whatever. So what, what is the what and what stage in someone’s wealth accumulation journey should they consider a trust? Like what value of assets, what net worth should someone have, and then say, you know what, maybe I should consider putting a trust in place because it makes sense. Given my, my existing nest egg, can you speak to that?
JUI SECK LIM:
Okay. As as a asset planning and succession practitioner, we are providing asset planning solution. So there’s one class bang. Don’t like me because bang, they need people that sell, transmit them. However, bang has got a caveat. You can ask any private bank in Singapore, you must have 5 million us investible assets, not property, not business share liquid assets, and I will make money, make your money. What kind of, or you, so I can treat, share. I can like go current, you know, currency, you know, so I can help you to make money.
But of course, in the process, they make money. And that is a condition 5 million and above for typically for these are so-called trust that the banks or private banker want to do anything less than that to them. It’s not meaningful. The first one is the annual fee. I mean, you put the asset with them, they charge you a fee about 10, 20,000. Usually it’s, I mean, there’s a minimum fee, you know, do nothing, but from an estate planning point of view, for example, you may not have heard of this term. We can’t spend my trust. It is a legal trust, but it’s long stem by Dolman malt.
But your plan is, you’re thinking, you know, the scenario you put in, in a letter of wishes in the semi, is there anything, anytime, anything, I lose my net capacity. Anytime I become totally disabled, or anytime when I pass away this, activate it. And then you can put your business inside there. You can put your property inside there. Of course your investment account when the time come they can transfer, into this trust. So, and there’s no NFV until it is activated, where else you set up a proper banker trust? First of all, is Jeff. I mentioned, you know, minimum, less than that, there are no one to talk to you.
And then every year, you know, they’re charging you 20,000, but in them, and you are healthy, you know what to do with yet, you’re paying for, and then, so I think I always, from a fit neighbor, point of view, your asset investment, you know, mega money, 100 is a totally different issue from estate planning. And also a banker don’t like me.
DERREN JOSEPH:
Okay. Okay. So five, 5 million would the usual Singapore private bank, but under some circumstances, maybe a standby trust would be an appropriate vehicle, because I guess you, it’s a smoother succession process in terms of you got to avoid probate, you know, it’s easier for your relatives, but what is the cost of setting up? Something like that for someone of lesser means that they don’t have 5 million, you know, they below that threshold, but what is the set up costs?
JUI SECK LIM:
In fact, I have a, myself, I less than 5 million, there’s nothing to hide. I let them, I have set up my, my family stand by Charles. I have many clients who are less than this in a one, 2 million or less. And that’s okay because when activated our annual fee is only 0.5%, 2.2% depend on your S your assets under management up to 1 million is 0.5. You put a fixed deposit in sample. 1 million is 1%. You’ve got, you know, we are only charging you a fee of a 0.5%. And then you’ve got then within, that is 0.2%. So you may put a fixed deposit in Singapore, even today at a low interest rate. Of course, I think I’m happy to know that the interest is going up by even in today’s low interest rate, you put fixed, fixed deposit, put 10 million. You’re going to get a one to 1.2, 5% per annum. We are charging point to The banker is different. So I’m seeing that from, for estate planning, purpose myself, or the company I’m working with, we are providing asset planning solutions. So to me, if you have a need, then the solution is there.
DERREN JOSEPH:
Okay. So just, just to make sure we get a point, so it’s 0.2% of the assets and the management, but would it be at the point when the person passes or from the time the activated?
JUI SECK LIM:
Okay. Because you can, in the semi-trance, you can indicate, particularly, let’s say I have a couple, both are professional. They have a joined stem by trust. So as long as one of them is healthy with some I, no activation is only when both lose many capacities or both pass away or both software. They cannot legally, they cannot manage that. Obviously you can stay all the scenario in a lateral position, in a standby trance. And you decide when to, when to activate before activation that technically no cost.
DERREN JOSEPH:
Understood. Okay. Fantastic. I understood. I hope they’re the person that pose the question is satisfied. Yep. Okay. Fine. All right. Another question. And it’s probably going to be the last scene that we pressed for time is the CPF. Cause obviously a lot of foreign, as you know, I think it’s a privilege to be made a permanent resident of Singapore. So they’ve enjoyed that privilege and they get to invest in the CPS fund. So how does it work upon their passing? What are the normal rules of succession for a CPF fund?
JUI SECK LIM:
Okay. Upon passing, just how I mentioned this, the rule under the CPF is called CPF. Nomination. Government are encouraged every CPF member to do their CPF nomination because with your CPF, nomination in state, that who are your beneficiary. And then I personally, because of my dad, my mum passed away. So I can tell you firsthand within one week I get a money. Yeah. They, even though you find your, your, your, this, this person pass away, you are the nominee, you know, then you got this amount of money, you know, we are going to send a check to you.
DERREN JOSEPH:
Okay. So they get the check or does it get sent to perhaps their CPF?
JUI SECK LIM:
And this one is under the CPF. Nomination default is cashable.
DERREN JOSEPH:
Right? Okay. Understand
JUI SECK LIM:
Unless you, as a member, you have, there are different nominations, you know, into the CPF savings scheme or special needs savings scheme, you know, for special needs personnel and another different thing. Otherwise the standard default nomination, the beneficiary will receive in cash or check either check cash bank, but nowadays, no government also encourage those are cashless. So basically you just stayed in your bank account and then do a transfer to your bank. Yeah. But on the CPF nomination, I think this something I need to highlight here, that’s clear. I’m not too sure any of this audience here, non Singaporean.
Now, if you have a CPF account, be very careful. You don’t CPM money. You know, it’s meant for retirement, but so whether you’re a Singaporean or otherwise, they stay until 65, basically keep this money for you. 65 years start paying up under the standard CPF, retirement, some scheme. However, our neighbor upstairs neighbor ups, there are many of them come to work for. And then their CPF money is held in St. Paul. So it would be on positively issue dominant, say, can, you can take back condition.You can pick out every cent from your CP of account, but you can never come to work in Singapore anymore, except as a tourist.
DERREN JOSEPH:
Right. Okay.
JUI SECK LIM:
So there’s a caveat, but otherwise, the money is until you die.
DERREN JOSEPH:
Right. Okay. But, okay. So in that scenario with someone’s parents die and they themselves, they’re still working age at 25, 26, and they have been nominated by the parents. So it just, they get a check.
JUI SECK LIM:
Receiving. I was checking cash and I basically then we share. Yes.
DERREN JOSEPH:
Okay.
JUI SECK LIM:
Not usual treat. We didn’t treat it one week. The money is up. In fact, we are very happy about this and very fast.
DERREN JOSEPH:
Okay. That’s good to know. And it seems as if that’s all the questions that we have for today, and we appreciate you spending your time and sharing of your wealth of expertise on the, the issues around estate planning here in Singapore. And so I’m just looking at the other platforms. Nope. No more questions. If someone wanted to find you, Mr. Lim, what’s the best way of reaching you?
JUI SECK LIM:
Maybe I just share the one here.
DERREN JOSEPH:
Okay, wonderful. So your email address. So for those who are listening it’s Jui Seck Lim. So that’s juisecklim@gmail.com. That’s juisecklim@gmail.com. And his number is plus 65 for Singapore, which everybody needs to know, 96208336, that’s96208336. Mr. Lim, thank you very much.
JUI SECK LIM:
My pleasure. Thank you for hosting this.
DERREN JOSEPH:
And we’ll see you next time. Have a good evening. Bye-bye
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