Orient Magazine Issue 73 - September 2019 | Page 19

Orient - The Official Magazine of the British Chamber of Commerce Singapore - Issue 73 September 2019

Over three-quarters of Singapore and Hong Kong parents concerned about the impact of their spouse remarrying on their children’s future inheritance

Research by Old Mutual International, part of Quilter, found that 76%* of parents in Singapore and Hong Kong were concerned that if their spouse was to remarry after they had died, it could change how their wealth was distributed to their children in the future.
Despite these parent’s concern, 49% of those surveyed thought their spouse ‘would’ or ‘probably would’ remarry if they were to pass away with a further 26% unsure. Under many common law jurisdictions, if someone was to die without a will, the entirety of their wealth might pass directly to their spouse who then could choose to distribute the wealth differently. However, some expats from other regions may find that forced heirship might apply.
For example, this could mean that children from a parent’s first marriage would not receive any of their wealth on their death, highlighting the impact that failing to plan can have when a widow or widower remarries. This can lead to a complex family with children from a parent’s first relationship all living together as one family unit, typically called a blended family.
For this reason, it’s important to ensure clients engage with the financial planning process as soon as possible to ensure wealth is passed down as desired. The research shows parents would be supportive of this with 72% of respondents saying that they would like to control how their wealth is passed to their children.
For those domiciled in a common law jurisdiction like the UK, writing a will is the first planning point to explore but it is also worth seeing whether a trust might be suitable for a parent’s needs. Trusts can also provide clients with more control and certainty over how their wealth is distributed, combined with possible inheritance tax advantages.
According to the research, 49% of respondents said they would use a trust, with a further 41% saying they maybe would, and just 4% would not.
Under UK law, trusts unlike wills are not public documents and are less likely to be challenged in court. There are a wide range of trusts to choose from, which have varying levels of access, flexibility and inheritance tax efficiency to suit the needs of someone. Trusts help ensure assets are passed to beneficiaries as and when required, and can be distributed immediately on death, avoiding lengthy probate delays
Ian Kloss, Head of Region (SE Asia) & CEO Singapore, Old Mutual International says:
“In this day and age, family situations are becoming increasingly complex, especially when it comes to financial contingency planning around death or possible divorce. If someone fails to put together a plan they could also fail to ensure that their desired beneficiaries actually benefit from their wealth.
“There are lots of financial planning techniques, including the use of trusts, which can help someone make sure that wealth is passed on both to its intended recipient and in the most efficient way. Trusts in recent times have grown in popularity because of the value that they add to legacy planning for people. These are personal family circumstances that are inherently unique which means financial advisers are incredibly well placed to add value by ensuring people get the right solution to fit their individual needs.
*Research carried out by Toluna for Old Mutual International in March 2019 and surveyed a total of 150 Singapore parents and 139 Hong Kong parents.
For more information or for the individual data from each region please contact:
Alex Berry on 07741151931
About Old Mutual International and Quilter plc:
Old Mutual International is a leading cross-border provider of wealth management solutions and part of Quilter plc.
Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business. Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors
• Intrinsic to Quilter Financial Planning
• The private client advisers business is now Quilter Private Client Advisers
• The UK Platform to Quilter Wealth Solutions
• The International business to Quilter International
• The Heritage life assurance business to Quilter Life Assurance
• Quilter Cheviot will retain its name.

This press release is for journalists only and should not be relied upon by financial advisers or customers.
Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.
This communication is issued by Quilter plc. Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270. Registered in England.
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