What is the most efficient way to manage a family portfolio and protect from personal liabilities? - Seedly
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ZhiHao

Asked 2w ago

What is the most efficient way to manage a family portfolio and protect from personal liabilities?

I am currently single and managing my family's money through my personal accounts. I understand that if I come into any personal liabilities, or if I eventually get married and end up in a divorce, my current family's monies will not be protected. Is there a setup to protect their monies from risk of any personal liabilities towards me? I was looking at setting up a LLC, but I understand there is a 17% tax for companies in Singapore. Can anyone enlighten me? Thanks

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jun)

Level 9. God of Wisdom
Updated 2w ago

Couldn't be opened an individual account for every family member name?

When your family's money is in your account, isn't there a tax problem?

You would be taxed but not them. Would that possibly be formal 'tax evasion' of Your family ? Sorry, just my idea, how it legally would be here, over in Europe.​​​

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Malvin Tan WP
Malvin Tan WP
Level 5. Genius
Updated 2w ago

Dont worry let me share some ideas in legal and financial aspects

Ok legal aspects,

While you are single should you pass away your entire estate including your family's portfolio will be distributed to your parents.

After you are married should you pass away half of your estate will go to your wife and the remaining to your parents. This might be undesirable should your family portfolio forms the majority of your estate however you can easily overcome this without seeking anybody's permission by writing a will. Note a will done before marriage is voided immediately upon marriage, so do write another one after marriage if necessary.

Ok financial aspect, in terms of your personal liabilities for example housing loan or business loan. As long as you are working unless your business fails then nothing much you can do, but there's still the risk that should your liabilites outlive you then the creditor will go after your "family" monies under your name. However you can hedge this inherent "time-running-out-on-you" risk with an Insurance payout equal to your liabilities.

In summary;

  1. write a will (please seek legal assisstance) especially after marriage

  2. Buy an insurance payout equal to liability or family portfolio value

why? because you are the steward of your family's wealth i assume you are a valuable asset to your family.

Focus on investing your family money! dont worry too much about other people think or say.​​​

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H
Harry
Level 2. Rookie
Answered 2w ago

Why can't you manage their monies separately in their own accounts?

If anything happens to you, you will be in for some very nasty family drama.

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