Achieving Estate Equalisation via Insurance: A Smart Strategy for Fair Asset Distribution.
Estate planning can be tricky, especially when it involves valuable but indivisible assets, like property. For those with multiple heirs, it’s important to ensure fairness without causing family tension or forcing the sale of cherished assets.
Take the case of Uncle V, who owns:
- A $20 million landed property in Singapore
- Two overseas properties worth $1.5 million each
- Three children, each with unique needs and locations
💡 The Challenge: How can Uncle V ensure that each child receives an equal share without splitting up the family property?
🔑 The Solution: Estate equalisation via life insurance.
Here’s how it works:
Eldest son receives the landed property.
The other two children receive the overseas properties.
Life insurance is used to provide a $17 million payout to the middle and youngest children, balancing the value of their inheritances.
This strategy:
- Preserves the legacy asset.
- Provides liquidity to the other children.
- Avoids family disputes (Hong Kong drama) and keeps things fair.
Can be structured to be tax-efficient.
Estate equalisation through insurance ensures that wealth is distributed in a way that respects both family harmony and fairness.
Are you planning your estate? Consider how life insurance can help you achieve your goals.