By Melvyn Goh Family Enterprise Advisor and Educator melvyn@succession.sg
I am a family business enterprise advisor and educator. The passing of Taiwanese actress Barbie Hsu has sparked discussions on a wide range of issues—from vaccination and influenza to inheritance, custody, and asset protection.
Having met both Zhang Lan and Wang Xiaofei during my media days in Shanghai and having dined at their restaurant, South Beauty, I find it intriguing to follow this story and express an opinion piece.
Given my deep interest in this area, here are the possible scenarios, specifically focusing on estate planning and asset protection. I do not have access to any privileged information beyond what is publicly available, and my views are purely academic in nature.
Barbie Hsu’s Estate
With Barbie Hsu’s estimated S$41 million estate at stake, questions arise over who will inherit what—her husband (DJ Koo), ex-husband (Wang Xiaofei), and two children. While DJ Koo may have waived his claim by giving the proceeds to Barbie’s mother, legal complexities remain, particularly concerning her children’s inheritance under Taiwanese law (Source).
Barbie’s wealth includes multiple properties and investments in Taiwan, China, and South Korea, which could lead to disputes if a clear estate plan was not in place.
If Barbie Hsu passed away without a will, the estate would be divided according to statutory provisions, with her children and Koo receiving legally defined portions. However, the matter is far from straightforward.
While Wang Xiaofei, as the biological father, automatically gains custody of their children, this does not grant him direct control over their inherited assets. If no trust or structured estate plan were put in place, the children’s inheritance could be subject to legal oversight, potentially requiring court intervention or guardianship arrangements.
A well-structured trust could have safeguarded these assets, preventing disputes over financial control. In cases where “blended” families and multiple jurisdictions are involved, an irrevocable trust established before remarriage would have ensured that assets intended for the children remained protected from potential claims by current or former spouses.
The Role of DJ Koo in the Estate
As Barbie Hsu’s legal spouse at the time of her passing, DJ Koo is entitled to a portion of her estate under Taiwanese law. However, the presence of a prenuptial agreement—if one was in place—could significantly impact asset distribution. (More on prenuptials later.)
One of the most effective estate planning tools in such situations is a spousal trust, which could have allocated specific assets to DJ Koo while preserving the majority of the estate for her children. Additionally, life insurance policies could have provided financial security for the spouse and other dependents without being subject to inheritance disputes.
In Taiwan, life insurance payouts bypass probate and are paid directly to named beneficiaries. If Barbie Hsu had taken out insurance policies for her husband or children, those benefits would remain unaffected by legal contests over her estate.
Tax Considerations Across Borders
Given that Barbie Hsu’s assets span Taiwan, China, and South Korea, tax implications differ across jurisdictions:
• Taiwan: Life insurance payouts to spouses or children are tax-exempt, while non-relatives may be taxed.
• China: There is no inheritance tax, and insurance payouts remain tax-free unless investment linked.
• South Korea: Inheritance taxs could applies.
A Marriage Registered in Both South Korea and Taiwan
A potential conflict may arise if both South Korea and Taiwan assert jurisdiction over the inheritance of the deceased spouse’s real estate, leading to legal disputes over succession rights, differences in inheritance laws, and possible double taxation on the estate.
Prenuptials
If there was a prenuptial agreement, Wang Xiaowei could have insisted on a clear post-divorce financial settlement regarding the children’s inheritance rights and Barbie’s wealth, as well as how the assets would be divided before marriage and upon divorce.
Prenuptial agreements are legally enforceable in Taiwan, South Korea, and China, but not necessarily in Singapore.
What If a Family Office Had Been Set Up?
If Barbie had already structured her wealth through a Family Office, it could have managed her assets across Taiwan, China, and Korea in a seamless manner, ensuring a long-term legacy plan for her children.
A Family Office could also have:
- ✔ Appointed professionals to manage cross-border legal and tax matters
- ✔ Protected assets from legal disputes
- ✔ Ensured generational wealth preservation
Key Lessons from This Case
Barbie Hsu’s case underscores the importance of strategic estate planning, particularly for high-net-worth individuals and families with complex financial structures.
1. Cross-border estate planning is crucial for individuals with assets in multiple countries.
2. Trust structures provide asset protection and prevent inheritance disputes.
3. Prenuptial and postnuptial agreements offer clarity on asset division.
4. Family offices ensure long-term stability and succession planning.
5. Life insurance is an effective wealth transfer tool, bypassing probate and legal disputes.
While the specifics of Barbie Hsu’s estate plan remain private, her case serves as a reminder that wealth protection is not just for the ultra-rich—it is a necessity for anyone who wishes to secure their family’s financial future.
Read Chinese version _ https://www.fortunetimes.sg/cn/?p=48705
(Contributed by Melvyn Goh, melvyn@succession.sg)
———————————————————————————————— A Note on Responsible Journalism
I want to take a moment to clarify that I have deliberately chosen not to use an actual family photo but an AI-generated image instead. The intent of this piece is to promote family harmony through thoughtful succession & estate planning, keeping the focus on education and positive discourse, rather than personal narratives.
In addition, given that the children are very young, anything published in the public domain will leave a permanent digital footprint. It is important to be mindful of their future, as what is written today may always be a reference point as they grow.
Finally, I want to encourage and emphasize that all (social) media content should avoid speculation, gossip, or any content that may cause harm, particularly for young children while they are growing up. I sincerely hope that all shared content aligns with the principles of respect, dignity, discretion, and social responsibility.