Hands up if you’ve entertained thoughts about what will happen to your children after you pass on. Thinking about your own death may seem morbid but estate planning and writing a will are essentially acts of love for your family – it ensures your children will be well taken care of even when you’re no longer around.
While most people would acknowledge the importance of preparing a will, there is still hesitation because of the misconceptions surrounding the process of writing one. For example, many people think writing a will is a lengthy and expensive process that requires hiring a lawyer. That is not true. Here we break down how to go about doing it (inexpensively) and why it’s so important for your family.
In Singapore, the law stipulates that a will is considered legally binding as long as it was written in sound mind and endorsed by two witnesses who are not beneficiaries of the will. Your will should include information as to how you would like your assets to be distributed as well as the full names and identification numbers of your beneficiaries and executor(s). Legal advice is only necessary if you have a complex set of requirements as to who should inherit your estate.
Another common misconception about writing a will is that it’s only for the rich. The truth is, as long as you have some form of assets – be it property, cash, stocks or life insurance payouts – that you would like to distribute after you die, you should write a will. This ensures your hard-earned wealth goes to your intended beneficiaries and mitigates any disputes if they arise. Do note that your CPF funds cannot be distributed through a will. To ensure your CPF funds are transferred to your intended beneficiary after you pass on, you will have to make a nomination via the CPF website or in person. Without a nomination, the state’s intestacy laws will be used to determine who gets your CPF savings.
If your children are below the age of 21 years old, you should also specify who will be appointed their legal guardian should both you and your spouse (touch wood) pass away. The person you nominate will be responsible for caring for your children as well as utilising the disbursed funds for your children’s needs until they reach adulthood. By including this clause, you can have peace of mind knowing your little ones will be well cared for by someone you know and trust.
Apart from writing a will, it’s also important to include legal instruments such as the Lasting Power of Attorney and the Advance Medical Directive in your planning. This ensures that your wishes are carried out in the event you lose the capacity to make decisions for yourself.
The Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more person to make decisions and act on your behalf with regards to personal welfare, property and financial matters. Without an LPA, your next-of-kin does not automatically get the right to make legal decisions on your behalf and this might hinder the process of getting you the care you want.
It may be unnerving preparing for a scenario where we’re no longer around, but the more prepared we are, the less we have to fear the unknown.
Likewise with the Advance Medical Directive (AMD). According to the Ministry of Health website, this legal document “informs the doctor treating you (in the event you become terminally ill and unconscious) that you do not want any extraordinary life-sustaining treatment to prolong your life”. With the AMD, your family members will not have to grapple with the burden of making such life-altering decisions.
After you’ve done up your wealth distribution plan and written your will, be sure to revisit it at least once a year. This is to ensure it’s in accordance with your current life circumstances, for example, change in financial situation, new additions to the family, and so on.
Victoria Tan is a new mother-of-one navigating the weird and wonderful journey that is parenthood. Even amidst the sleep deprivation, breastfeeding woes and endless diaper changes, she’s finding joy in rediscovering the world through her son’s eyes.