You’ve worked hard throughout your life, accumulating assets, investments, and maybe even some cherished family heirlooms along the way. But have you ever wondered how much your entire estate is actually worth? By understanding the value of your estate, you gain a powerful tool for effective estate planning, ensuring that your wealth is protected and passed down to your loved ones seamlessly.
What are your assets?
Consider what you have that is precious to you, such as your money, property, and valuables. Your estate is comprised of the following assets:
Personal assets:
These are cars, jewellery, homes, and even club memberships that add a touch of luxury to your life.
Liquid assets:
Think of cash, savings, fixed deposits, and current accounts; these are financial lifelines that keep your wealth flowing.
Investments:
There are unit trusts, shares, bonds, and investment properties that hold the promise of exponential growth.
Insurance policies:
Endowment plans, term or whole life coverage, investment-linked options, and the Dependants’ Protection Scheme safeguard your loved ones’ future.
CPF savings:
These are the accumulations within your Ordinary Account, Special Account, MediSave, and Retirement Account balances.
Do you share ownership of your property?
If you share ownership of a property with another person, you should consider the nature of ownership. It will establish the fraction of the asset that you are able to transfer legally. There are three types of ownership:
Sole ownership:
As the sole owner, you hold full authority and decision-making power over the asset’s transfer. It’s entirely up to you to determine its future destination.
Tenancy-in-common:
In this arrangement, each joint owner has the right to transfer only their specific portion of the asset. The remaining portion remains with the other owner(s), allowing for distinct shares of ownership.
Joint tenancy:
When owning a property jointly, ownership and control are automatically transferred to the surviving owner(s) upon the passing of one owner. It’s important to note that, in this case, you cannot will your share of the property to another person.
Gross estate vs. net estate values
The term “gross estate” encompasses the total value of an individual’s assets and properties, without taking into account taxes and debts. It represents the grand sum of all possessions before any deductions are made.
“Net value” refers to the amount that remains after deducting all eligible deductions, credits, and the payment of liabilities from the gross estate. Essentially, it represents the true value of the estate that is subject to taxation.
Leave Behind A Lasting Legacy
To navigate the complex landscape of estate planning and create a comprehensive plan tailored to your circumstances, don’t hesitate to contact Summit Planners. Our team has the knowledge and expertise to guide you through the process, ensuring your wishes are honoured and your assets are protected.
Disclaimer:
This article should not serve as a substitute for independent professional advice. Contact Summit Planners to schedule a consultation with our team of professionals.
Sources:
- https://www.moneysense.gov.sg/articles/2018/11/calculating-the-value-of-your-estate
- https://www.thebalancemoney.com/what-value-of-an-asset-is-used-for-estate-tax-purposes-3505646
- https://www.hdb.gov.sg/residential/living-in-an-hdb-flat/changing-owners-occupiers/change-in-ownership/change-in-flat-ownership/manner-of-holding#
