Wealth Protection Tax Planning Essay

Order ID# 45178248544XXTG457	Plagiarism Level: 0-0.5%	Writer Classification: PhD competent
Style: APA/MLA/Harvard/Chicago	Delivery: Minimum 3 Hours	Revision: Permitted
Sources: 4-6	Course Level: Masters/University College	Guarantee Status: 96-99%

Instructions

Wealth Protection Tax Planning Essay

Question Description

Darren Leong, aged 38, lives in a HDB Executive Apartment. Besides the HDB executive apartment, Darren owns the following assets as shown below:

WEALTH GROUNDING – FOUNDATIONAL PART

HDB Executive Apartment

Purchase Price $280,000 Original Mortgage $196,000 Current Mortgage Balance $135,000 Fair Market Value $735,000

 

Car Purchase Price $128,000 Original Loan $96,000 Current Loan Balance $78,000 Fair Market Value $108,000 Other Assets Savings Account Balance $3,000 Fixed Deposit Account $4,500 Growth Stock Unit Trust – Market Value $65,000 Personal Property $9,000 Credit Card Outstanding Balance $7,000 CPF Ordinary Account Balance $93.000 CPF Special Account Balance $26.000

WEALTH PROTECTION – TAX PLANNING

1. About 8 years ago, Darren bought a $150,000 5-year limited-pay whole life plan. The annual premium for his plan was $19,500 p.a. The Cash Value of his plan is $48,750.
2. Darren has put in place a Hospital Income Insurance Plan that is designed to pay him a daily cash benefit of $250 up to 180 days per hospitalization and for 1000 days per lifetime. The premium for the Hospital Income Insurance plan is $1,975 p.a.
3. Darren recently bought a Disability Income Insurance policy with a sum assured equal to 70% of his monthly salary, i.e. $5,250 which is 70% of ($5,000 +$2,500). The deferred period is 6 months in the event that he is disabled and the Disability Income Insurance policy covers him up to the age of 65 years. The annual premium for his plan is $10,800 p.a.
4. Darren rents out one common room to Mr. Leow for $850 per month. Mr. Leow has gone overseas for 6 weeks and will return in early January 2017. Mr. Leow said that he would pay the rent for December 2016 and January 2017 upon his return.

WEALTH ACCUMULATION – RETIREMENT PLANNING

1. Darren Leong currently works as a freelance Logistics Consultant and for the last 5 years he has been earning an average annual gross income of $60,000. Darren also draws an Income of $2,500 per month from an “Interior Décor Specialist” partnership.
2. Darren expects his average annual gross income from his freelance logistics consultancy and partnership business to grow at 3% per annum. His expected retirement age is 65.

WEALTH GIVING – ESTATE PLANNING

Darren’s parents are still alive and staying with him. Darren has a will which only provides for the current house to be given to his wife. His Unit Trust and insurance policy are to be shared equally between his parents and daughter, Katherine.

Question 1 (WEALTH GROUNDING – FOUNDATIONAL PART)

1) (I) what is Darren’s total investment asset to net worth ratio?

1. ii) What are the TWO (2) primary considerations in determining Darren’s ability to handle debt?

WEALTH PRESEVATION – TAX PLANNING

2) State the year of assessment Darren needs to declare the rent income.

3) What type of insurance policies can Darren claim against his Life Insurance Tax Relief?

5) Explain who will be entitled to the following assets upon Darren’s demise:

Current House

CPF OA and SA amount

Unit Trust $65,000

Whole Life Insurance Policy $150,000

Savings and Fixed Deposit $3,000 and $4,500

6) What THREE (3) options are open to the “Interior Décor Specialist” partnership in continuing the business upon Darren’s death?

7) Calculate Darren’s First Year Income Required at Retirement age.

RUBRIC
Excellent Quality 95-100%	Introduction 45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.		Literature Support 91-84  points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.			Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score 50-85%	40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.		83-76  points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.			52-49  points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality 0-45%	37-1 points The background and/or significance are missing. No search history information is provided.		75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.			48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
You Can Also Place the Order at www.perfectacademic.com/orders/ordernow or www.crucialessay.com/orders/ordernow

 

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!