Birth, death and even divorces are part and parcel of modern-day living. Children invariably suffer the consequences if families have not put their minds to protecting and safeguarding them. This recent decision of the High Court clearly highlights the ramifications when people do not take active steps to secure their financial and asset entitlement.
The question here is what difference would it have made if the divorced spouse had protected her monetary entitlement from her ex-husband's funds in EPF if she were to cause him as part of the terms of the divorce to create a living trust for her and her children?
Had a living trust been created by the deceased ex-husband prior to the finalisation of the divorce, the High Court could well have taken an entirely different view to ringfence the EPF funds as matrimonial property as the ex-husband will be holding these funds as trustee instead of merely as an EPF contributor.
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