What is Estate Planning?

An estate plan gives instructions on how you want your money and savings distributed after your death.

If you have young children or children with special needs, or elderly parents who rely on you financially, estate planning is vitally important. A thorough plan could help ensure that your family’s needs are provided for.

Using our unique 3 step approach to build your customised and bespoke Financial Home, Estate Planning is one of the Financial Rooms that some may have as well.

Thus, we make use of our  6 Questions Approach to ensure that your legacy continues in the unfortunate event of mentally incapacity or demise.

What are the 6 Questions Answered?

1

What’s your Net Worth upon Death or upon mental incapacity?

2

Who are the beneficiaries?

3

When would you like your beneficiaries to receive the monies?

4

How would you like your beneficiaries to receive the monies?

5

Who would you want as your children’s guardian?

6

Who do you trust to carry out your estate plan?

What happens if I don’t plan?

  1. Delay – A delay in distribution means that your family can’t get the money when they need it the most.
    Without Estate Planning, your family would have to appoint an administrator to handle your assets and go through the probate process.
  2. Disputes – Tensions and family feuds may arise if it’s not clear who receives what.
    Without Estate Planning, your family may run into chaos as they fight legal battles in court to work out what they find as fair and equitable distribution.
  3. Intestacy – Without a Will, the estate may not be distributed as you wish.
    Without Estate Planning, your estate will be distributed according to Singapore’s Intestate Succession Act. This may lead to elderly parents being excluded if the deceased leaves behind a spouse and children.
    For Muslim estates, the beneficiaries must apply to the Syariah Court for an Inheritance Certificate to establish the share of each beneficiary. A Grant of Probate or Letters of Administration may need to be obtained after the Inheritance Certificate has been issued.

With Estate Planning, Can I will all of my assets away?

Most of your estate can be distributed via means of Estate Planning through a will or a trust, however there are some exceptions.

  1. CPF Monies
    CPF savings do not form part of the estate and are not covered by a Will.If you don’t make a CPF nomination, the money will be distributed via intestacy laws. It will take time to locate the legally-entitled beneficiaries, and a fee will be payable to the Public Trustee’s Office to make the distribution.
    CPF nomination is required if you want your CPF savings to be distributed according to your wishes.
  2. Property – Joint Tenancy or Tenancy in Common
    Joint Tenancy – In a Joint Tenancy agreement, both parties have equal shares and the survivor takes 100% of the share of the property. This allows for easy transition between spouses or family members.
    Tenancy in Common – In a Tenancy in Common agreement, the parties are given the right to will their shares based on their wishes.
  3. Insurance Policies
    Insurance policies can be nominated or held under trust as part of estate planning. Nomination of beneficiaries can be done to allow for fast transfer of monies without having to go though the grant of probate process or the execution of the will.
    However, as part of Estate Planning, you may choose to nominate the policies to your estate and from there, to be distributed according to your wishes.

What is a will?

A Will is a written document that sets out your instructions and wishes on how you want your estate (your money, property, possessions and other assets) to be distributed after your death.

What is better than a will?

A Trust is a legal arrangement between you (the settlor) and a trustee.
When you set up a trust, your appointed trustee takes ownership of your assets and manages them in the best interest of your beneficiaries. You can decide the terms of the trust including who your beneficiaries are, and how much power you wish to retain over your trust.
As assets placed in a trust are not part of a deceased’s estate, probate is not required, and disputes over the assets can be avoided.