For those with dies with no Will, assets are distributed according to Intestate Succession Act. If you like how the assets are distributed according to Intestate Succession Act, you are in trouble because the Intestate Succession Act hardly does anything for you other than to ruin your family. Why? The Intestate Succession Act only take cares of how your assets are distributed into percentages. … [Read more...]
You are viewing articles categorised under Estate Planning
Can you describe how Will writing is done?
Related question: Is it true that only lawyers can advice and write Wills? You do not need to engage a lawyer to write your Will. In fact, by my experience, that is probably not advisable. Anyone can write their own Will provided they know how to do it. It is better to engage professional Will writers who specialised in writing Wills. A lawyer does not necessarily possess the specialized … [Read more...]
Why can’t I do estate planning myself (DIY estate planning)?
Frankly speaking you are already doing some sort of DIY estate planning yourself. When you hold joint accounts with your spouse, you are already doing estate planning. When you buy a house jointly with your wife, you are already doing some estate planning. When you buy insurance to provide for your dependents’ needs, you are already doing estate planning. The problem is that this way of doing … [Read more...]
What is the difference between joint-tenants and tenancy-in-common?
For assets held as joint-tenants, upon the demise of one party, the surviving party inherits the entire asset automatically and thus becoming the sole owner of this asset. Assets held as joint-tenants do not form part of the estate. For tenancy-in-common, upon the demise of one party, the surviving party do not inherit the demised party’s share of the asset. Also the share of the demise party … [Read more...]
What are the tools used for estate planning?
The tools used for estate planning are: Wills, Living Trusts, Testamentary Trust, Lifetime Transfers, Corporate Structures, Buy-Sell Agreements, Insurance Wrappers (or sometime called Portfolio Bonds) and Lasting Power of Attorney (under Mental Capacity Act 2008). Please note that these are tools. Tools are meant to solve a problem and it is a means, not an end. If tools are used incorrectly, … [Read more...]
What is an “estate”?
When a person dies, all his assets are collectively called the “estate.” However, not all assets in the estate are distributed in the same manner. For personal owned assets like saving accounts, fixed deposits, unit trusts, shares and properties, SRS balances, investment made via CPFIS, these assets are distributed according to the Intestate Succession Act (if there was no Will) and the Wills … [Read more...]
Why Estate Planning is Essential for a Family Unit?
Estate planning is critically important for a family person especially those who have young children. An estate plan determines the manner in which your assets are to be distributed on death of either spouses. Since the probably of death is 100%, estate planning is not optional. If you don’t plan, the State has a default plan for you which are pampered with flaws: * If your children become … [Read more...]
Family to pay $1.3 million in estate duty!!
I got a call from my colleague just now who was approached by a family to advise them on estate duty issue as one of the member of the family has just passed away. Apparently this person held $3million worth of US shares in which the family did not know. Now that he is dead, the family was shocked to discover that they have to pay a hefty estate duty tax of more than a million to the US … [Read more...]
Drafting a Will and considerations
There are many reasons to draft a Will. However, there are also many considerations that require careful planning before you make your Will. Many clients have a misconception that there is no need to make provision for estate planning. Also many assumed that estate planning is only for the rich or it is merely just drafting a Will. However, the Will is merely a tool to ensure that plan works out … [Read more...]
Nomination in insurance policies
After purchasing insurance policies, the next concern is how the proceeds of the insurance policies would be distributed upon the demised of the life assured. How the proceed is to be distributed is important for if it is not done in accordance to the planned intention, it means that the intended beneficiaries are denied the monies meant for them and that the unintended beneficiaries receives a … [Read more...]
