Leave a legacy that will ensure your family's future.
After a lifetime of accomplishment, you would want your family to inherit the fruits of your achievements. Perhaps you wish to ensure an equitable distribution amongst your chosen beneficiaries, or facilitate the payment of estate taxes without liquidating your family business, properties owned or any other valuable assets. These are the considerations that accompany the amassing of wealth, and can be effectively managed using insurance.
Based in Singapore, Citibank International Personal Banking offers legacy planning and estate planning support to ensure your loved ones can continue building on your success. Talk to us today to learn how we can help you achieve peace of mind on your succession with legacy planning out of Singapore.
Legacy Planning Insurance
|Your goals||How insurance can help you|
Enhance your wealth and create an immediate estate that can last generations
|Unlock liquidity and enhance your assets to create a sophisticated estate and through wealth transfer planning, ensure your legacy for future generations.|
Shelter assets and minimize taxes to provide fully accumulated value tax-free for the next generation.
|Create liquidity to pay estate and other taxes through a fiduciary structure bundled with insurance.|
If you have business interests or special illiquid assets which you would like to maintain intact (eg. Fine art, family business, real estate) or would like to provide inheritance for someone not included under forced heirship laws or vary the heirship percentage allocation.
|Create liquidity to distribute assets equally to your heirs according to your wishes.|
- Enjoy peace of mind knowing that by setting aside a small portion of your wealth today, your loved ones will be provided for with a meaningful legacy
- Diversify your assets and minimize risk in your financial portfolio while maintaining control and confidentiality over your funds during your lifetime
- Leverage your wealth with a high immediate guaranteed cash value to allow yourself the opportunity to join in other ventures that you have planned for
- Ensure fair distribution of wealth to your beneficiaries with liquidity and ease of distribution
With diversification, the risk in your financial portfolio will be minimised. A Universal Life plan can complement and enhance your portfolio as the death benefit is typically paid in cash, thus avoiding the hassles associated with the liquidation of assets or fire sales under unfavorable market situations.
Gayle owns a successful trading company with her husband, John. The young parents inherited it from her father upon his retirement. Over the past 10 years, they have built up a comprehensive financial portfolio, accumulating their wealth through various investments. During years of good economic growth, they were enjoying a return of 9-14% per annum on their investments. However, the recent financial crisis eroded this wealth significantly. The dedicated parents are worried about the amount of inheritance available to their loved ones including succeeding generations, after their lifetime. John and Gayle wishes to secure the future of her loved ones, including succeeding generations.
John and Gayle may wish to consider including life insurance in their portfolio. Life insurance offers diversification to a financial portfolio. With most policies, the amount of death benefit is guaranteed and is not correlated to other investment alternatives. The value held in a life insurance policy is likely to remain unaffected despite occasional market declines. Knowing that their legacy for their family has been taken care of, John and Gayle can focus on expanding their business.
You want your assets and investments to be succeeded by your family and future generations. In countries where estate duty applies, insurance proceeds can provide liquidity to fund estate taxes and expenses for probate and estate administration. Ensure that your assets and investments are succeeded by your future generations and your family will not be burdened with additional financial responsibilities.
David is a businessman with total assets worth US$20 million. Most of his assets are tied to business interests and investments. His wife and three children will eventually take over his assets after his passing. However, estate taxes that may be due on his estate is likely to wipe out his entire liquid holdings and his family may have to make up the difference or sell assets to cover the taxes.
David may consider channeling a portion of his cash to purchase a life insurance policy. As death benefits from the insurance policy will typically exceed the initial premium outlay, David's legacy will be effectively enhanced, providing sufficient liquidity for distribution among the beneficiaries. David's family will also have an additional source of liquidity to pay estate taxes that may be due.
*The actual insured amount is dependent on the type of insurance plan, age, sex, smoking status and the country of residence.
**This figure assumes there is neither growth nor decline in the asset value.
Insurance can serve as an efficient planning tool to provide adequate liquidity to your heirs and distribute your assets fairly among your loved ones. Thus, this helps to facilitate fair and equitable distribution of the inheritance, while ensuring that the future of your loved ones is secured even after your lifetime.
George runs a successful manufacturing business. He is married with three grown children. His eldest son, Mike, is in line to take over the company when the time comes while the other two children are likely to pursue their own careers and interests. While George wants to bequeath his business to Mike, he wants his other two children to have a fair share of his inheritance too.
George's objective is to ensure a smooth transition of his business while minimizing potential problems over his inheritance. Instead of dividing the business into 3 equal portions to be shared among his three children, George can be bequeath his business in whole to mike. whom he has groomed to take over the business. Separately, he can consider using insurance to equalize his inheritance to the other two children. Essentially, insurance can provide sufficient liquidity upon death to ensure equitable distribution of business and financial assets.
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- Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and surrender value payable (if any) may be zero or less than the total premiums paid.
- Insurance plans are underwritten by the relevant insurance company. Insurance products distributed are an obligation only of the insurance company. They are not a bank deposit or an obligation of or guaranteed by Citibank Singapore Limited or its related entities.
- For US-dollar denominated insurance plans, premiums and benefits payable will be made in US dollars. For insurance plans dominated in other currencies, premiums will be deducted from your Citibank USD account. Equivalent returns on the policy in other currencies (including Singapore dollar) will depend on prevailing exchange rates which may be highly volatile.
* The above is only a summary of some of the key risks in investing in the product. Detailed risk disclosures are set out in the documentation relating to the specific product. Prior to entering into a transaction, you should ensure that you have read and understood the nature of all of the risks associated with the investment in order to determine whether the investment is suitable for you in light of your experience, objectives, financial position and other relevant circumstances. You should consult with your legal, regulatory, tax, financial and/or accounting advisors to the extent you consider it necessary in making your own investment decision.