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What are you investing for? For wealth? For the children?

When we purchase properties or invest in stocks or options, it should be a joyous occasion.

A new home, a new investment, and a better future. But failing to plan the future of these investments can lead to unintended consequences that can tear families apart. 😭 

Imagine working a lifetime to build a legacy, only to see it become a source of family discord. The recent legal ordeal of Mr. Lim, a 90-year-old in Singapore, highlights the critical need for clear and proactive estate planning. Let’s explore how this situation unfolded and why it’s a crucial lesson for all of us.

Especially for investors like you.

You can read the full details here. But I have summarised the key points below.

1. Dispute Origins: Mr. Lim, aged 90, initiated a lawsuit against his daughter, Ms. Lim, over the right to sell four properties valued at over S$11 million. The dispute arose after Ms. Lim contested her father's decision to sell the properties, which were registered in their joint names.

2. Family Dynamics: The lawsuit revealed deep family rifts, with Mr. Lim’s youngest son and the son-in-law of his second child siding with him, while his four other children supported Ms. Lim. The case highlighted the complexity of family relationships intertwined with financial and property issues.

3. Legal Arguments: Ms. Lim argued that the properties were intended as joint gifts from her father. However, Mr. Lim contended that he never intended to gift the properties; rather, he bought them as investments for himself and they were only in joint names for convenience due to his age and inability to manage banking and legal matters due to his illiteracy in English.

4. Court's Decision: The court ruled in favor of Mr. Lim, finding that Ms. Lim held her share in trust for her father. The judge determined that the properties were to be sold or disposed of according to Mr. Lim's wishes, rejecting Ms. Lim’s claim of joint ownership.

While this case seems complicated and rare (I mean how many family have 4 properties to fight over 🥹 ), disputes over estates such as properties and other investments are actually more common than you think.

During my investment consultation with my clients, I am often asked about estate and legacy planning, which frankly I have no answer because I am not qualified to give advice on such matters. 😅 

But that prompted me to start my own estate planning process. After I have done my estate planning, I actually become a much better investor. 👍️ 

🟢 Why? Because it is a huge relief to know that all my assets (e.g. properties, stocks, bonds and even my LEGO collection!) will be distributed accordingly and would not be a source of future discord. As such, I am able to better focus on investing!

How to Do Estate Planning?

I did that with the help of an experienced and qualified estate planner, Cheng Kok (I also didn’t know such role exist, I always thought it is just do a will at the law firm 😆 )

Since then whenever my clients ask me about estate planning, I would called on Cheng Kok to share with my clients. (He even taught me how to double the estate value for my kids 😎 using some creative planning strategies)

We recently did a livestream and he shared about Estate Planning 101. For those of you who have not started or want to know more about Estate Planning, this will be a good place to start.

👇️ Watch the recording below

Conclusion

Your estate plan is more than paperwork; it’s a roadmap for the future care of your loved ones. Let’s use the lessons from all the past cases to strengthen our own estate planning strategies.

1. First step will be to track all your assets. Here is a Free Tool from Cheng Kok during the masterclass to help you with that.

2. If you want Cheng Kok to help you plan your estate, you can reach out to him here. (He is providing a complimentary call to all my community members.)

May Your Profits Grow!

Pete
Invest with Pete

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