It is easy to overlook certain essential aspects of financial planning. One area that I find people procrastinating would be to set up a will + lasting power of attorney.
A will is a legal document that states your wishes for the distribution of your assets after your passing. While people of all ages can benefit from having a will, it holds particular importance for singles (with joint assets), parents with young children, and the elderly.
For Singles: Protecting Joint Assets and Ensuring Preferred Distribution
Singles often think they don’t need a will, but this is far from the truth, especially if they share joint assets with someone else. For example, if you co-own a property with a family member or a partner, a will can help ensure that your share goes to the right beneficiary. Without a will, your assets may not be distributed according to your wishes and this can potentially cause disputes and financial stress for your loved ones. In the worst case scenario, it may leave your partner without a place.
For single individuals, a will allows you to pass on your assets to close friends/family members who may not be considered legal beneficiaries. It also provides the opportunity to donate to charities and support causes you care about.
For Parents with Children: Appointing Guardians and Providing Financial Security
Parents, more than anyone else, would understand the importance of planning for their children’s future. A will would allow you to appoint testamentary guardians for your minor children, ensuring they are taken care of and living with your most trusted.
Additionally, a will enables you to provide financial security for your children. You can specify how your assets should be managed for their benefit, ensuring that their education and well-being are adequately funded.
For the Elderly: Efficient Estate Planning and Minimizing Taxes
As one grows older, estate planning becomes increasingly vital. Singapore has specific laws (ISA) regarding the distribution of assets. With a will, you have more control over how your assets is divided.
At the end of the day, Equal may not be Fair or Ideal. Imagine the case where you have an unmarried child staying with you and a married child with his/her own place of residence. Simply selling the property and splitting the proceeds may not be the best method of distribution.
Similarly, you may not want to gift equal share to a child who is a vulnerable party or whom you are estranged from.
A will can also streamline the probate process, making it easier for your loved ones to access and distribute your assets after your passing. This simplifies an already emotionally challenging time for your family.
In conclusion, having a will is essential, regardless of your age or family situation…
Feel free to drop me a note if you require assistance with your estate planning matters. Cheers and be well!
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 independent 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.
I believe that “Worrying is not planning and Hope is not a good strategy”, and that the purpose of Financial Planning is to allow us to lead fulfilling lives while being financially wise.
As such, my role as a Certified Financial Planner CFP® is to help my clients build those sound financial strategies and design action plans that put them on track to their financial goals so that they can live the best possible life for themselves.
This is done via a systematic approach of ongoing cash flow management & asset allocation, as well as investment management, estate planning, and tax optimization.
I also ascertain that I stay up-to-date with industry trends and policies changes to ensure that my clients benefit from the latest strategies and opportunities available.
Over the years, I have developed a specialty in comprehensive financial planning for busy legal professionals & educators. I also particularly like assisting working mothers & young families to achieve their long term financial goals. Working with the largest independent financial advisory (IFA) firm in Singapore also frees me from product pressures and allows me to only recommend solutions that suit my client’s needs. And client’s interest, is always the core of my FA business.
Being a wealth planner is my dream career and this is what I hope to do for a long time.
Other than financial planning & investment, I love to travel, read, bake and I am an adrenaline enthusiast. I am most looking forward to the day my children join me on my adventures.
