By Boo Kok Chuon
Barbie Hsu’s Passing and the Legal Challenges That Follow
The recent passing of Barbie Hsu (徐熙媛, 大S) has raised important questions about inheritance, guardianship, and wealth management, particularly for high-net-worth individuals (“HNWI”) with complex family structures. Hsu, a Taiwanese actress, had two children with her ex-husband Wang Xiaofei (汪小菲) before their divorce in 2021. She later remarried Goo Jun-yeop (具俊晔, DJ Koo), a South Korean musician.
With her passing, there are now potential legal and financial challenges concerning who will gain custody of her children and how her estate will be handled. If similar circumstances arose in Singapore, these issues would be governed by the Guardianship of Infants Act (GIA, Cap. 122) and the Intestate Succession Act (ISA, Cap. 146).
For a detailed legal breakdown of how inheritance and guardianship laws would apply in such cases, please refer to the article below that I co-authored and published on Omnia Law Chambers’ website:
➡ What Happens to a Parent’s Estate and Guardianship of Minors Upon Death? A Singapore Legal Perspective on Barbie Hsu’s Case
Beyond the legal framework, however, there is a bigger issue at play—how can a family ensure that both guardianship and financial matters are handled according to the testator’s intentions? This is where a family office structure becomes a valuable tool.
What Happens to the Custody of Barbie’s Children?
Under most legal systems, including Singapore’s Guardianship of Infants Act (GIA, Cap. 122), Section 6(1), when a parent passes away, the surviving biological parent automatically assumes full guardianship of the children.
In Barbie Hsu’s case, this means that her ex-husband, Wang Xiaofei, will likely gain sole custody of their children. Regardless of the bitter end to their marriage, legal principles prioritize biological parental rights over other individuals, including step-parents or grandparents.
What Happens to the Children’s Inheritance?
If Barbie Hsu passed away without a will, her estate would be distributed according to intestate succession laws, meaning:
- Her current husband, Goo Jun-yeop, would inherit 50% of her estate.
- Her two children would share the remaining 50%.
Since her children are minors, their inheritance would be held in trust until they turn 21, as per Section 35 of the Trustees Act (Cap. 337). However, the legal guardian—Wang Xiaofei—would have control over the trust, unless a will specifies otherwise.
Would Barbie have wanted her children’s inheritance to be managed by her ex-husband? Given their divorce and past conflicts, it is unlikely she would have entrusted Wang with financial control.
What Could She Have Done in Her Will?
To prevent Wang from accessing her children’s inheritance, Barbie could have included specific provisions in her will, such as:
- Appointing an independent trustee to manage the inheritance, ensuring Wang has no direct access to the funds.
- Placing restrictions on fund usage—ensuring that money is only used for education, healthcare, and necessities, with trustee oversight.
- Deferring the children’s full access to inheritance until they reach an age where they can responsibly manage their own finances.
The Risk of Rigidity in Such a Structure
While these provisions prevent mismanagement, they could also create rigidity, limiting access to funds in emergency situations or when financial needs evolve over time. A rigid will-based trust may not account for:
- Unforeseen medical or educational expenses.
- Changing economic circumstances (e.g., inflation, relocation costs).
- Personal aspirations (e.g., starting a business, pursuing postgraduate studies).
Would a Will Fully Resolve the Issue?
Even with a well-structured will, certain risks remain:
- A conflict of interest if her current husband (Goo Jun-yeop) is appointed to manage the estate.
- Step-parents prioritizing personal financial interests over their stepchildren’s well-being.
- Early inheritance depletion—without financial oversight, young beneficiaries may lack the maturity to handle sudden wealth.
Why a Corporate Single-Family Office is a Better Solution
A Single-Family Office (SFO) under a corporate framework would ensure:
1. Structured financial governance—removing individual bias in wealth management.
2. A trustee shareholder with limited executive powers—holding legal ownership but unable to spend the assets.
3. A nominee director with limited powers over material spending—ensuring controlled fund disbursement.
4. A staggered inheritance model—ensuring children do not spend all the money at once.
How a Corporate Single-Family Office Provides Superior Protection
1. Separation of Powers for Checks and Balances
- Trustee Shareholder: Holds legal ownership of assets but has limited executive powers, preventing unauthorized use of funds.
- Board of Directors with Independent Members: Can be flexibly structured to suit the needs of the testator with limits over spending powers with oversight. Can impose limited control over material expenditures, ensuring all major financial transactions require shareholders’ approval within the corporate governance framework.
2. Preventing Premature Wealth Dissipation
- Funds are not directly accessible by the children or their legal guardian (Wang Xiaofei).
- Spouses and step-parents cannot access or transfer the funds out of the jurisdiction.
- A corporate governance structure regulates fund disbursement.
3. Audit & Compliance as a Safeguard Against Misuse
- Annual audits ensure financial transparency.
- Financial oversight prevents unauthorized withdrawals or mismanagement.
- A board of advisors or independent directors can oversee financial transactions.
4. Structured & Staggered Inheritance Disbursement
Instead of lump-sum inheritance at 21, for instance, the SFO can release funds in stages:
- Age 18: Access to education funds.
- Age 25: Controlled access to living expenses.
- Age 30+: Full inheritance transfer, contingent on financial maturity.
5. Continuity – Building a Legacy for Future Generations
One of the key benefits of a corporate Single-Family Office is that it is a separate legal entity, forming a lasting legacy that can be passed down through generations. This means:
- Sustained Wealth Management:
- The SFO’s corporate structure allows it to exist independently of any single family member, ensuring that wealth is managed according to long-term strategic goals.
- Legacy Building:
- As the children mature, they can continue to operate and even build upon the existing SFO framework, adapting it to meet future needs and opportunities.
- Intergenerational Continuity:
- The established governance, checks and balances, and staggered disbursement models ensure that the wealth remains protected and continues to support the family’s objectives for years to come.
- Adaptive Framework:
- The SFO’s constitution can be amended over time (with appropriate safeguards) to respond to evolving financial landscapes and the changing needs of future generations.
Final Thoughts: Why a Corporate SFO Provides the Best Long-Term Protection
Barbie Hsu’s case highlights the necessity of structured estate planning that goes beyond a traditional will. For HNW families with complex relationships, a corporate Single-Family Office (SFO) offers a robust solution by:
✔ Separating wealth from individual control and creating a legacy.
✔ Implementing a governance structure with checks and balances through limited-power trustee shareholders and nominee directors.
✔ Ensuring assets remain protected and disbursed in a controlled, staggered manner.
✔ Providing audit and compliance measures to safeguard against mismanagement.
✔ Creating a sustainable, adaptive framework that can be passed down and built upon by future generations.
For families looking to secure their wealth and ensure that their legacy is preserved over the long term, a corporate SFO offers the most effective means of achieving these goals while aligning with the testator’s long-term intentions.
