wah... with so many points to share,

mind sharing ur monthly expenses here with detail breakdown? after all, the topic tittle read as such!

perhaps one can also include the following points

single / married? how many heads expenses?
bought own house? type of property
how many kids you have?
kids school fees / tuition fee?
need to take care parents? how many heads?
living in parents house?
no car loans? what type of car?
no buy insurance? for how many heads

all talk no details = blow water lor....like this and like that teory also useless....

one can google all teory on savings and copy paste here as post ma but all these also not realistic also...

only with detail breakdown n numbers then we can share the truth,

cause in todays world, number talks not teory only....

all teory in the world also uselss if one dun put numbers into it when it comes to expenses and budgeting.

anyone mind sharing?

i doubt wong mun keong is your real name.... u put ur ic here than i treat u as real name la, else u are also using a nick name ... and talk about hiding.... you rather type 55%  than 3k or 5k.... dunno who is more takut to hide???

i think u are those young chap whom just want to post with not much points la....

house morgage is RM 0 .... parents buy house for u lor....

anyway mature people talk based on facts and dun kutuk kutuk people.... this whole forum full of people with nick name and there is nothing wrong with that...

prove me wrong if u can breakdown ur monthly expenses in RM amount and not % ..... but i doubt you are able to la.... if can breakdown, awal also breakdown liao lor....

you say your mortagage rm 0 with remorgage n what banking product.... really a no brainer as pinjam duit from bank liao no need to payback issit?

u say yearly windfall means something not confirm punya lor.... how can u included something not confirm into ur budget..... striking the lottery also can be yearly windfall .... same as bonus, its not something owe to you....

To included windfall into ur budget is something not very reliable.... doubt u know any financial planning....

breakdown your monthly expenses in RM ammount as many has done lor.... else ma blow water lor.....

lazy heheh
copy & pasted from googled https://kclau.com/estate-planning/how-to-us...ones-and-asset/
Types of Trust

There are three kinds of Trust. Let me start with the Living Trust and continue with the Testamentary Trust. Living Trust is the person still alive, the asset is under the person’s name and he/she setup a Living Trust. During his/her lifetime, he/she need to transfer the assets that he/she currently owns to the Trustee name. But for Testamentary Trust, when the person is still alive, the asset is under the person’s name. When the person is dead and gone, the asset is still under the deceased name until the probate is granted and the debts and income tax are cleared, then the Testamentary Trust will only be started.

In simple terms:
1. i die
2. My Will creates the Trust & certain assets in my Estate goes into the trust to be managed as per my written instructions to the Trustee, for the benefit of my beneficiaries (and charities).
3. reach a certain amount left, dibubarkan
OR reach 80 years, dibubarkan coz when i set it up, max "lifespan" of such trust = 80 years.

The trust deed document might cause RM1000-RM5000, depending on the complexity.
The trustee also charge a percentage of the assets under trust, ~1% per year.

Not cheap

ok la, as a % of my estate, sup sup water
the Will itself cost about $7K, considering everything/impact - ok lar, as a % of estate or yearly growth, sup sup water

for my goldbro (U la, who else) - lagi worthwhile la
worthwhile if U worry your beneficiaries will get the "lottery winners' curse" and ending up worse off that before inheriting coz of bad spending habits developed.
just a thought ya - no absolute right/wrong, just wong

PS: IMHO, there are things one should NOT put into the testamentary trust - eg. properties, due to cost of transfer/stamp duty/etc. That one i just Will it out. Thank gawd i'm not a muslim, have to worry about Faraid and challenges from the males.. i feel for our muslim bros/sis - Wasiat also can be useless

1% for administering the instructions of the settlor is quite expensive le.

Actually not much to be done. The fee is almost similar to a UT?  At least for the UT, the find manager has to perform in his own capacity and capability.
The trustee is basically just an admin. Correct me on this.

er.. depends on U.
Me - my testamentary trusts states what asset allocation, rebalancing, payouts, etc. leh heheh
and not many Trustees do such - PBTrustee wont, die die say put in cash FD je. Gila...

Like I mention, its all administrative. 1% sounds pricey for that. Especially when the settler is still kicking! 

er.. Settlor? as in Grantor?
if so - dead liao ma - me, that's how the Trust is created, via death --> Will --> Testamentary Trust created & populated with assets from Grantor

or U meant some other Settler? <clarifying>

Settler is YOU. 

When the trust is created, whether Living or testament trust, YOU are still alive and kicking. Maybe at this time, the admin fees will be less?

BTE what sort of instructions can the settler give?

Wong sifu and propetjul,

What I did about estate planning is very different. I now set up bank accounts under my children’s individual name. Also different trading accounts for each of them. Then I ask them to manage the funds themselves. This is possible because they are all adults now. The beauty of the technology is I can see via online login. The only condition is they cannot use the money as long as I am alive. And I can transfer the returns to my own bank account when needed

In this way, they learnt how to manage their own money. Sort of like a training. In the initial years, I still give my view when they ask. But over the years, I am already confident with their way of investing. Now they are quite good if not better than me.

For properties which is mostly under company name, I will slowly transfer the shares in the company to them. Same arrangement with trading and bank accounts.

In this way, I have done away the need for trust. Also no need complicated will which have to go through legal process. Save a lot of management fees too

When my time is up, then they are already well prepared on their own financial management.

Estate planning and insurance are overrated. All hinge on the fear that you might die early. But most people will not die early. I think it will be more beneficial for your children to learn how to manage their investment. Train them with financial management and to me, that is the best estate planning you can give to your children.

Wong sifu and propetjul,

What I did about estate planning is very different. I now set up bank accounts under my children’s individual name. Also different trading accounts for each of them. Then I ask them to manage the funds themselves. This is possible because they are all adults now. The beauty of the technology is I can see via online login. The only condition is they cannot use the money as long as I am alive. And I can transfer the returns to my own bank account when needed

In this way, they learnt how to manage their own money. Sort of like a training. In the initial years, I still give my view when they ask. But over the years, I am already confident with their way of investing. Now they are quite good if not better than me.

For properties which is mostly under company name, I will slowly transfer the shares in the company to them. Same arrangement with trading and bank accounts.

In this way, I have done away the need for trust. Also no need complicated will which have to go through legal process. Save a lot of management fees too

When my time is up, then they are already well prepared on their own financial management.

Estate planning and insurance are overrated. All hinge on the fear that you might die early. But most people will not die early. I think it will be more beneficial for your children to learn how to manage their investment. Train them with financial management and to me, that is the best estate planning you can give to your children.

Wong sifu and propetjul,

What I did about estate planning is very different. I now set up bank accounts under my children’s individual name. Also different trading accounts for each of them. Then I ask them to manage the funds themselves. This is possible because they are all adults now. The beauty of the technology is I can see via online login. The only condition is they cannot use the money as long as I am alive. And I can transfer the returns to my own bank account when needed

In this way, they learnt how to manage their own money. Sort of like a training. In the initial years, I still give my view when they ask. But over the years, I am already confident with their way of investing. Now they are quite good if not better than me.

For properties which is mostly under company name, I will slowly transfer the shares in the company to them. Same arrangement with trading and bank accounts.

In this way, I have done away the need for trust. Also no need complicated will which have to go through legal process. Save a lot of management fees too

When my time is up, then they are already well prepared on their own financial management.

Estate planning and insurance are overrated. All hinge on the fear that you might die early. But most people will not die early. I think it will be more beneficial for your children to learn how to manage their investment. Train them with financial management and to me, that is the best estate planning you can give to your children.

1. Are all bank and trading accounts joint name with either one to operate? If not, what happens in the unwanted event of ?????

2. The company share transfer also same risk... it is either in your name or in their names... there is no "slowly transfer".... you can try to presign transfer forms though... but u don't want to transfer to them and then IF they go first and no WILL...!!!
3. A bit out of topic but wouldn't that make yr kids "daddykasi"??? Might not be good for them to know in advance that u have so much money "in store" for them...

1. Single name. Their names respectively. In the rare event that they go first, then follow the law. Their spouse and children will get the assets, which is what I wish anyway. Without a will, they just need to take longer time for legal process. There is a loophole in online banking era, where you still can transfer the money out even if a person is dead. But this issue will be another big debate altogether...

2. In their names like bank and trading account. My wife and me still hold substantial %. Sooner or later have to transfer to them. The problem is all except one of my children are living overseas. So some company secretary papers have to send to them for signature if they are directors and shareholders. That’s why the transfer isn’t not done yet.

3. Yes, daddykasi when the daddy dies 

At the moment, they still don’t have daddykasi. They own the assets in form only. Except education which I paid years ago. All of them are doing very well as professionals. So, they buy their own car and own house with their own effort. Can’t escape bank loan of course 

Since young, they already know my financials because I share with them my investment strategy. I hide nothing from them. There is often a misconception that kids from rich family are pai kah chai. Maybe watch TVB too much. If you teach them since young, they can be a normal good kid too. Must give credit to my wife.

In fact, if they know earlier their daddykasi is fair for all siblings boys or girls alike, then there will be no jealousy. And they will respect the parents more. Among them, they will also have very good relationship. Those fight for inheritance among sibling until need to go to court will not happen...

Just my own thinking which I put into practice....I am glad it works for me...

1. Single name. Their names respectively. In the rare event that they go first, then follow the law. Their spouse and children will get the assets, which is what I wish anyway. Without a will, they just need to take longer time for legal process. There is a loophole in online banking era, where you still can transfer the money out even if a person is dead. But this issue will be another big debate altogether...

2. In their names like bank and trading account. My wife and me still hold substantial %. Sooner or later have to transfer to them. The problem is all except one of my children are living overseas. So some company secretary papers have to send to them for signature if they are directors and shareholders. That’s why the transfer isn’t not done yet.

3. Yes, daddykasi when the daddy dies 

At the moment, they still don’t have daddykasi. They own the assets in form only. Except education which I paid years ago. All of them are doing very well as professionals. So, they buy their own car and own house with their own effort. Can’t escape bank loan of course 

Since young, they already know my financials because I share with them my investment strategy. I hide nothing from them. There is often a misconception that kids from rich family are pai kah chai. Maybe watch TVB too much. If you teach them since young, they can be a normal good kid too. Must give credit to my wife.

In fact, if they know earlier their daddykasi is fair for all siblings boys or girls alike, then there will be no jealousy. And they will respect the parents more. Among them, they will also have very good relationship. Those fight for inheritance among sibling until need to go to court will not happen...

Just my own thinking which I put into practice....I am glad it works for me...

people here all talk monthly expenses which includes house loans n monthly repayment,

some people suddenly change to doing up "trust" and "will" and the after tot when you die....

not to confuse others here, the situation is most people take up loans when buying a house from banks and other financial institution and bank form an agreement with you for you to repay a certain amount your loan plus their interest charges...

There is almost no way for one to escape from repaying the bank on the amount which you have borrow....

if u pinjam 500k, u kena bayar balik 500k plus banks interest proffit... simple saja...

one can turn and twist with the loans with some people remorgage the property to get better or lower banks proffit or to get cash for cashflow while some gets ways to pass it the "debt" to the next generation... say ur children and etc

there is no way if one take up a loan say 500k from a bank and with some turn n twist is able to get away without repaying the loan to the bank.

all these trust and will writing is another tools to suck your monthly money away just like unit trust, insurance and MLM ....

unit trusts, insurance and MLM is not a bad thing if u need them, after all one just need to pay and u get unit trust agent services, insurance protection and MLM products which mostly is health related...

setting up trust do not let u escape from repaying your house loan with the bank, in fact the trust agents get their salary from you each month.... just like unit trusts, insurance and MLM.... if u need it then you can go ahead with getting a trust set up for urself.... there is ofcoz charges when you engage their services...

but when is comes to house loan, whatever u borrow, you would need to repay back accordingly...

in some countries, current loan ammount could be pass to next generation to be repay.... something not very nice to do if you ask me....

one setup a trust only after one have completely pay off their loan ammount and the property is 100% yours... else passing off debts to others is not a nice thing to do....

the common situation is the need to repay huge housing monthly loans as the last 10 years property price is high...

setting up "trust" and "will writing" can be done at anytime in your life but most people will do when they are older age.... when things are more settled down in one life....

note that all these trust and will services will cost you more monthly expenses, just like getting another mobile phone with a monthly fees once you engage them...

my role model daddy/papa

1 and 2. Ok.. should be alright.

About daddykasi, Chinese being Chinese, at the end of the day, all assets will go to kids with a portion to charity maybe. So, essentially, the only difference between a kid with daddykasi and a kid without is that one of them has "smarter or luckier" parents. That's all.

Everyone has their own way of dealing with money in relation to their kids. There is no right or wrong way, as we all know. I will also fund my kids education 100% as long as I am capable. However, I will not have joint accounts with them nor give them any amount to put in their account to invest. Reason being I do not want them to have the mentality that they are already rich even before they start. Still, I have no problem in supporting them to partially fund down payment for car or house during the early stage of their career. After all, what's wealth for if not to be shared around with loved ones? I know my stance is a bit contradictory. I guess I am trying to balance between helping and love. In short, it's helping them but not too much. In any case, when I pass, all will go to them... just that they wil not know how much. I will however, tell them that I have willed my assets, however little, EQUALLY, among them.. as and when the time comes. I want them to know there is no special favour to any particular one which will be detrimental to their relationships, like u said. These are my thoughts at the moment on this subject...

Thanks for sharing this alternative tactic, great option to consider indeed.