Of the 3.934 million people living in Singapore as permanent residents, how many are elderly? According to SingStat 12.4% or 487,600 of the 3.934 million are aged, and the number of the elderly in Singapore is rapidly increasing. This rapid increase makes it one of the fastest ageing population in Asia.
As people age, they become more susceptible to illnesses, such as dementia that affects 40,000 elderly in Singapore. The number of people suffering from dementia is expected to double in the year 2030. Dementia attacks a person’s brain cells, impairing the memory, thinking and behaviour of an elderly person. The disease causes mental incapacity resulting in his or her inability to manage assets, properties and the financial affairs as a whole. And this incapacity pushes loved ones to setting up trust for elderly parents. Setting up trust for elderly parents is a way to help them protect and manage their assets from untoward people who would abuse their vulnerability.
An elderly suffering from dementia or any other disease that causes mental incapacity is prone to be scammed and cheated by greedy and inhumane people. This is due to their inability to make logical decisions, and they are also not in the correct state of mind to think about the outcomes of their actions. An elderly person suffering from dementia can easily be swayed by bad intentions of others because they are suffering from memory loss. They can be coerced to give away their home, their properties to despicable family members or even manipulating strangers such as in the well-publicised plight of Madam Chung Khin Chun. Below are cases showing just how vulnerable the elderly can be.
|The Fraud in Mortgage
An elderly woman, age 88, suffering from senile dementia was about to lose her house of 37 years because one of her adopted daughters allegedly stole the deed to the house and used it to get a $1 million overdraft facility. The bank took the old woman to court to take her house as payment for the $1.2 million the adopted daughter owed. But in good grace, the High Court ruled the mortgage invalid, and the bank did not succeed in its action to evict her.
|Priest Cons A Wealthy Parishioner
Ms Emily Chan, aged 74, sued a priest Joachim Kang in order to get back the assets she had entrusted to him. A 394,000 Guinness Anchor Shares, of which some have already been sold, RM 350,000 ($140,000), three $10,000 notes and $12,000 in unit trusts. The former priest was sentenced to 7 ½ years in jail for his crimes of misappropriating $5.1 million church funds. Kang had, in fact, converted the shares into cash for his own use.
It’s cases like this that prompt children and relatives of the elderly to set up protection trust, revocable trust, irrevocable trust, or even asset protection trust. This is to make sure that their parents and loved ones are not scammed by the likes of the despicable people mentioned.
Setting Up Trust for Elderly Parents
Having an elder care trust fund makes sure that the elderly are well-cared for, and have all their medical needs met. There are different trust choices that one can use to make sure that the elderly are well taken cared of. A good example of such is a trust with a life interest, which provides financial support to a beneficiary, elderly, throughout his or her lifetime. Another trust that would be useful for elder care is a standby trust. A standby trust comes into effect the moment the settlor dies or becomes mentally incapacitated, so it would be a good choice for the elderly.
Trust such as revocable trusts, irrevocable trust, protection trusts and asset protection trust can also be used. To further learn the advantages of each grab a copy of the book “The Rockwills Guide to Succession and Trusts in Wealth Management” by clicking the link below:
Or contact Rockwills. They can give a full in-depth discussion about the topic of suitable trusts for the elderly. Their expert opinions can make setting up trust for elderly parents easier.
Setting up trust for elderly parents is the best way to protect assets from the ill-intentions of individuals such as family members, friends, and even strangers. There are plenty of trusts to choose from, and knowing who to contact can make it easier to pick the best trust for each elderly case.