This is an interesting article.
For the rich, it seems like buying a real estate for their children is the de-facto arrangement as legacy planning. More often, during my discussion with people who are in this situation, clearly, this gift is not the most appropriate as the child may need liquid cash at a certain point in their life and they may end up liquidating the real estate, perhaps even at a wrong time? All for the sake of realising cash for their more immediate need.
Even if ensuring a roof over their head does make absolute sense, what if the location and lifestyle doesn’t match the child?
Where affordable, transferring wealth or gifting is definitely a must but explore various options where the receiptient has minimal hassle in inheriting and most importantly, offers the child total liquidity for the child to pursue their own dreams or realise their aspirations, with ‘seed money’ already in hand from their beloved parents. That, to me, is the most pricelss gift I can bestow to my children!
#KelvinKhoo #FinancialPlanning #EstatePlanning #LegacyPlanning #GiftofLove #RealEstate #Liquidity #AIASG #HealthierLongerBetterLives #B1B