Case study 2: Health is wealth (60 marks) Anna (40 years old) has just purchased a Medical & Health Insurance (MHI) policy a week ago. Recently she had been feeling shortness of breath and back pain but she did not go for a medical check-up. In the past she has always obtained a clean bill of health and so she just brushed this off as an isolated incident of stress. However. these illnesses have been recurring over two weeks and she finally decided to go for a check-up at Asiana Hospital The doctor advised her to be admitted for observation for two days. Upon running of tests she was diagnosed with cardiac lip and kidney problem. She then lodged a claim for her hospitalization and consultation charges with the insurance company. However, she was told that her claim was rejected. Anna is a widower. lives with her 70 years old mother and two school going children. Her mother is suffering from hypertension and on constant medication to maintain her blood pressure. Anna is the only child in the family and her father has passed away a couple of year ago due to cardiac arrest As for now. she has not written any will for her family should anything happen to her. (b) Estate Planning (30 marks)

(i) In order to create awareness on estate planning, you have arranged a meeting with Anna. Explain to her about estate planning and its purpose. (6 marks)

(ii) Anna believes that if anything were to happen with her, whatever she has will automatically go to her widowed mother and children. As a financial planner. explain what a will is and the reasons why Anna should have one. Additionally. discuss the implications of her not having a will. (i6 marks)

(iii) Another option that Anna may consider is to set up a Trust with the assistance of a Trustee. on the intention that the well-being of her mother and under-aged children would be well-taken care of if she passes away. Explain to her the nature of a Trust and how it will benefit her beneficiaries. (8 marks)