5 Challenges in Estate Planning in the New Era
Estate planning has always been a key part of financial responsibility. But do you think you are finished by just writing a will? Unfortunately, it is not that simple. Depending on circumstances, yes you may have a will, but there are other challenges also. For example, estate taxes and duties can reduce the amount of assets you pass on to your dependents (and sometimes very significant!) Also, are you sure that when you are gone, your will will really be executed, without people against it (like your children disputing for their shares?)
So, in this article, we explore five of the biggest challenges people now face when it comes to estate planning and how we can better prepare for them.
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Cognitive Decline and Aging
People are living longer! But this also means a higher risk of cognitive decline, with diseases such as dementia. In Singapore, around 1 in 10 seniors over 60 are affected, and it jumps to 1 in 2 for those over 85.
Can you be sure that your mental capacity will not deteriorate in the future? Sometimes, you won’t even know. Without proper planning in place, things such as legal disputes and frozen accounts can happen. Are you sure your family members know where all your assets are? For example, cryptocurrency wallets and private keys. If they don’t know, they cant access it and these assets will be gone.
What to do?
Plan early! Tools such as a Lasting Power of Attorney (LPA), advance care plans or trusts can help, and the best time to put in place these is when you have a sound mind. These ensure everything goes according to your wishes even if your mental health changes down the road.
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Scams – No.1 crime in Singapore!
In Singapore, S$2.6 billion to scams between 2017 and 2023. Many victims are elderly or vulnerable. Scams are also constantly evolving, with advanced tactics such as police impersonation. Are you sure that your family will not fall for any scam?
What to do?
Educate them about common scams, assign a trusted executor, or set up a trust that releases funds in stages rather than all at once. This part of estate planning can help protect beneficiaries from losing these funds to scammers.
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Assets based overseas can incur much Estate Tax
Singapore has 0% Estate Tax, which is very nice. But the same cannot be said for many countries around the world, with different estate tax laws. Any assets own in these countries are liable to estate tax, which can be very high. For example, persons owning US stocks can be taxed up to 40% even if the investor isn’t American. Some countries also has forced heirship laws which can override your will.
What to do?
Have a cross-border estate plan. Too overwhelming with too many assets abroad? You may want to consult professionals who understand multiple legal systems. Alternatively, base assets here in Singapore or in countries with little to no estate tax.
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Emotional Challenges
Estate planning is not just a financial process because it’s also an emotional one. Everything may seem fine, but when it is time to distribute assets, it brings up many things such as family tensions, attachment to assets, pressure from family members, guilt and much more. These emotional factors can delay planning or lead to decisions that don’t reflect true intentions.
What to do?
Again, plan early! Write a will, prepare LPA. Have conversations with your family about this, when everyone is still sound. You can also engage empathetic advisors or mediators.
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Digital Assets
From Bitcoin and NFTs to online businesses and cloud accounts, more of our wealth is digital. But where is the private key? What are the passwords? If your loved ones don’t know where to find it, it will disappear.
What to do?
Document your digital assets clearly: where they are, how to access them, and what you want done with them. Let them know where they are.
Wrapping Up: A Legacy or a Mess?
Failing to Plan is Planning to Fail. Your wealth can disappear, get disputed, or become inaccessible if your beneficiaries can’t locate or manage it. Estate planning is more than writing a will. It’s about making sure your legacy is protected, your family is supported, and your intentions are clear.
Taking time now to plan properly means your wealth becomes a gift, not a headache. Let’s make sure what we’ve built over a lifetime continues to serve our loved ones well into the future.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Published By:
Loh Kok Keong Kenny
Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.
In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).
With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.
罗国强（Kenny Loh） 是一位杰出的财富咨询总监，专长于综合投资规划与遗产管理。他擅长协助客户实现投资资本增值，并建立退休被动收入来源。同时，他通过税务优化的方式帮助客户将投资组合高效转移给受益人，运用风险缓释策略确保资本增值的税务效率，并通过战略性资产配置实现财富传承的最优化。
除咨询工作外，罗国强是新加坡交易所学院（SGX Academy）的特聘讲师，专注于新加坡房地产投资信托（S-REIT）投资领域，并定期在MoneyFM 89.3电台分享专业见解。他拥有认证遗产与传承规划顾问（Certified Estate & Legacy Planning Consultant）及国际认证财务规划师（CFP）资格。
在逾十年的综合遗产规划经验中，他独创“遗嘱、持久授权书与备用信托三合一”解决方案，兼顾客户的社会责任、法律义务、情感需求及家庭和谐。他持有工商管理硕士与电气工程硕士双学位，并获英国遗嘱撰写及遗产规划从业者协会（SWWEPP）与亚洲认证机构遗产规划从业者有限公司（EPPL）联合授予副遗产规划从业师（AEPP）专业资格。
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