estate planning

What exactly is Estate Planning?

Your estate is your wealth. This may include a family home, other investment properties, your personal assets like car, jewellery, heirlooms and your intangible assets like insurance, shares, bank accounts and unit trusts.

An estate plan details how you want your wealth managed if you were incapacitated by illness and how you want your affairs managed after you die. A will is only a part of estate planning.

 
Estate Planning Can Wait. Or Can It?

Too many people are caught up with growing their wealth but few take time to ensure that their wealth is protected. If you think estate planning can be shelved for later, think again! If you were to meet with the unfortunate tomorrow, can your family afford the high cost of you not having an estate plan? Here are some of the consequences of not having an estate plan:

~ More tax payable for your family when they inherit your assets
~ Your wealth may end up being distributed to people whom you had no intention of giving your assets to
~ Your beneficiaries may need to wait for years to inherit your assets if you died without a will
~ The Court may appoint a total stranger to administer your wealth
~ The Court may entrust your children to people whom you don't know or trust
~ In the event of death, your family's assets may be subject to estate taxes three times over.
~ The problem of squabbling heirs fighting over your inheritance may arise. This could become even more complicated if you have a spouse or children from a previous marriage.
~ The Court may appoint a stranger to make decisions for you if you become mentally incapable.

 
What are the Considerations for Estate Planning?

An estate plan that suits you will depend on your present circumstances and needs. Here are some common factors that you should take note of when drawing up an estate plan.

~ You need cash at death
~ Make use of Insurance
~ Planning to reduce Estate Taxes
~ Draw Up a Will
~ Nominate a Beneficiary for CPF Funds
~ Set Up a Trust
~ Appoint a Guardian
~ Plan for Business Succession

 

Review Your Estate Plan

Your estate plan is only good as long as it fits your needs, desires and circumstances. Changes of events will require a review of the plan. You should review and revise your estate plan every 3 to 5 years or when changes take place.

 

The Role of Professionals in Estate Planning

There are many financial and legal considerations in drawing up an Estate Plan. Some laws and estate planning tools, like setting up of a trust, are complex, and need the combined expertise of a lawyer, an accountant and a financial adviser to help you put together a comprehensive plan.

Your lawyer will draft the estate planning documents; your accountant will advise you on all matters related to income and estate taxes of your plan; and your financial adviser is responsible for advising you on the financial aspects of your estate plan, including the preservation and growth of your estate. He or she will also assist in the implementation of the estate plan.

Start a partnership with your licensed adviser and draw up a blueprint for you and your family's future.

 


This information presented in this website is of a general nature only and therefore does not take into account your current circumstances, financial situation, individual needs or personal investment objectives. Please do not act on any information in this website, but seek advice from your financial adviser. This information is subject to change.
 
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