COR167: Splendid Pipeline (33) and Generous Pipeline (29) have been Married for five (5) years: Managing Your Personal Finances Assignment, SUSS, Singapore

CASE STUDY Splendid Pipeline (33) and Generous Pipeline (29) have been married for five (5) years. They have a three-year-old daughter. Weak Pipeline. who suffers from cerebral palsy. a medical condition that requires her to be wheelchair-bound. Her current education is managed by the Spastic Children’s Association School (SCAS). They also have a two-year-old son. Marvelous Pipeline, and now Generous Pipeline is expecting their third child, a daughter. in August 2020. They do not intend to have any more children.

Generous Pipeline works as a secretary. Her gross income is $5,200 per month and she enjoys an annual bonus of 1.5 months of her annual income.

Splendid Pipeline is gainfully employed as a Project Manager in Oxfam Engineering Company. His annual gross income for 2020 is 548.000 with a 2-month performance bonus. His employer’s CPF contribution for that year is 59.520 per annum.

Generous Pipeline’s Parents

Generous Pipeline’s father passed away recently. Generous Pipeline’s mother. Gracious Pipeline. who are 55 years of age? is a private banker with Supreme Bank She has enough CPF savings set aside in her Retirement Account.

Splendid Pipeline’s Parents

Splendid Pipeline’s mother. 60 years old, is the only parent that he has, and she resides with Splendid Pipeline and Generous Pipeline. Splendid Pipeline provides her with an annual allowance of $6.000.

Splendid Pipeline’s Saving Amami earned an interest of $200 in 2020. Marvelous Pipeline earned interest of $4.500 in 2020.

WEALTH PROTECTION —INSURANCE PLANNING

The insurance portfolio for Splendid Pipeline is shown below:

WEALTH ACCUMULATION – TAX PLANNING
Splendid Pipeline and his friend. Jolly Pipeline. operate the following companies with different accounting year-end as shown below:

Splendid Pipeline wrote a book for ninth he received a Royalty income in 2020. A breakdown of Royalty income and expenses is shown below:

Splendid Pipeline inherited two (2) other properties when his father passed away and Splendid Pipeline rented out the two properties. Property 2 was vacant for three (3) months. The details of the properties are as follows:

ME.M.TH GIVING – ESTATE PLANS-LNG
Splendid Pipeline had written a Will prior to his marriage and had nominated his mother as nominee for his CPF monies.

Splendid Pipeline and Generous Pipeline live at Upper Serangoon Road. a 5-room HDB Eat near Koran MRT station The property is registered under a sin* OUlltf. Today. it is worth 5460.000 and has an outstanding loan of 5320.000.

questions.1  WEALTH PROTECTION—INSURANCE PLANNING

The following questions require students to illustrate the critical aspects of Wealth Guarding through Tax and Insurance Planning.

1(aXi) What provision will Generous Pipeline’s insurance company use to keep her 540,000 whole life participating policy in force?

1(a)(U) How much will Unfortunate One’s escrow account have at the end of 8 years?

1(bXi) Describe the features of the following types of Annuities:

I. Joint and SUItOf Annuities

II. Life Anunties with Period Certain

III. Defined Anmuty

IV. Fixed Period Payment

1(b)(U) What is the difference between Mitt of premium and total permanent disability benefits?

Question 2 WEALTH ACCENWLATION — TAX PL4NNING

The following questions require students to describe the use of the concept of the time value of money to daily transactions. and to demonstrate the Wealth Grossing Process through Imrstment Platuung and Retirement Planning.

2(a) \Then would Splendid pipeline and Jolly Pipeline be required to file the estimated chargeable income for their three companies under Section 63A of the Income Tax Act?

2(b)(1) Can Generous Pipeline make a CPF cash top-up of 57.000 to ha mother’s CPF Minimum Stun Account?

2(bXifi Splendid Pipeline and Generous Pipeline wish to claim for the following Income Txc Reliefs for the Yea of Assessment 2021. You are required to state the criteria to be eligible for maiming the relevant reliefs and compute the actual amount of relief and explain to them their entitled tax reliefs as follows:

I. Generous Pipeline wishes to claim the Working Mother’s Child Relief for her 3 Children

II. Generous Pipeline wishes to claim the Qualifying Child Relief for her 3 Children

III. Generous Pipeline vines to claim the Parent Relief

Compute Splendid Pipeline & s tax liabilities for the Royalty income

2(cXii) Detamine Splendid Pipeline’s income from the two properties for the Year of Assessment 2021.

Question 3 WEALTH GIVING — ESTATE PLANNING

The follow-me questions require students to use the key aspects of Wealth (Mang through Estate Pluming 3(a)(i) Compare the differences in the distribution of the estate under the Will and Intestate Succession Act

3(a)(ii) Trust is the disposition of assets upon the death of the grantor while Will helps the senior with the disposition of assets before Splendid Pipeline’s death. Explain the validity of this statement

3(b)(i) Will Splendid Pipeline’s mom receives his CPF monies upon his demise