Estate planning is the process of making preparations and leave behind legally-recognised documents to consolidate and distribute your assets when you are no longer around. Writing a Will is an important part of the plan
With a clear and concise Will, you can:
- Decide exactly what you want done with your property, investments and money after you pass on;
- Appoint executors and bestow them with the powers they need;
- Reduce unnecessary costs and legal expenses from depleting your estate;
- Appoint legal guardians to take care of your dependents/young children; and
- Specify your preference in funeral matters.
First things first, make an inventory of your assets and liabilities. This comprehensive list will come in handy at the next step when you create a legal-binding Will to ensure all financial matters are handled according to your wishes. Do note that your Central Provident Fund (CPF) monies are not covered by a Will, so you have to make a nomination with the CPF Board.
For example if you pass on leaving the two main assets of your family home and investments, you may think it makes more sense to liquidate the investments to pay off the mortgage of your current property, so that your loved ones can continue to have a roof over their heads. However if you do not state these intentions clearly in the Will, there is a possibility that your executor might consider the property as a greater liability and decide to sell it in a rush and at a loss.
That being said; nothing is truly set in stone. You are well advised to review your Will regularly, especially as and when you enter different life stages. You might also want to utilise other estate planning tools, such as setting up a Trust or appointing a Lasting Power of Attorney (LPA) and an Advance Medical Directive (AMD).
If you would like to learn more about Will Writing, do stay tuned to our pages and register for the upcoming session.
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