When the main card or supp card holder dies

Credit cards have been a common financial tool for many Singaporeans today. However, not many understand the implication if the main card or suplementary card holder dies.

1. If the main card holder dies

When the bank is informed of this, it will send a letter to the supplementary card holder to inform that BOTH the main and supplementary cards will be cancelled. The supplementary card holder will only be liable for transactions incurred under the supplementary card account. The bank will also file a caveat on the main card holder's estate to recover the outstanding amount incurred under the main card account.

If the card holders have an existing installement plan with certain merchants, the plan will be terminated and the cost incurred will most likely be bear by the card holders.

2. If the supplementary card holder dies

The bank will inform the main card holder that the supplementary account will be cancelled, and the main card holder will be liable for transactions incurred under the supplementary account.

Above information shows that a card holder's death can have financial implications to the family members, who happen to be the supplementary card holders (or vice versa). It is recommended that credit card should be applied individually rather than through supplementary card's route.

One client said to me: "But my income is not enough to apply for such cards, therefore I want my dad to issue me a supplementary card."

My simple reply: "Then, wait till you earn that kind of income to apply one yourself."

*In Singapore, excessive credit debts is one common problem that leads to bankruptcy and family break down.

The Work of an Advisor

In my work in advicing wealth protection and transfer strategies for clients, the planning process often cross path with clients' personal life. This is a natural progress of the advisory work because finance often has significant (though not completely) impact on a person's life.

The role of me as a financial advisor is not to dictate client's life decisions, but to analyse the facts to give client a better platform to make his decisions. Most of my work involves highlighting potential pitfalls in the client's decisions. Hopefully, the consequences of his decisions (financial or otherwise) can turn out better, or at least in the way he expected. Most of these consequences only happen after many years. Only then will my work be deemed as successful (or failure). In the fast pace world today, this sort of client-advisor relationship is not well understood and appreciated.

As a result, in order to be an advisor of any field, he or she should have the following:

1. Well studied and continually study the knowledge of his trade,

2. Has a reasonable years in actual pratice of his trade so that he understands the problems of reality underneath the theories,

3. Has the integrity to say "I don't know" in situation where he really does'nt know,

4. Has the courage and sincereity to serve and bring the benefits of the knowledge to the clients, instead of using the knowledge to steer clients into a direction that benefit the advisor.

The work of an advisor, if conducted properly, is one of the most satisfactory work amongst all; if not conducted properly, it is one of the most miserable work amongst all.