Estate planning refers to the act of designating how your property will be distributed to your benefactors after you die. It also includes setting guidelines for how you would like to pass on instructions for the purpose of maintaining your own legacy, values, beliefs and hard work etc. Sometimes you can also write how you would like to be cared for if you are disabled before you die. So today, we are writing on benefits of estate planning based on our source, who is himself an estate planning Singapore lawyer, to give a professional point of view on this matter.
Who needs estate planning?
Everyone including you owns an estate. Well, nearly everyone. It simply refers to all you own –from cars to homes, land and bank accounts and all other forms of investments including life insurance policies. Anything valuable to you now that you would like to leave to your loved ones after you are gone is under this wide bracket called “estate”. You see no matter how large or modest your estate is, we all have one thing in common –mortality. And when you are done with this life you are not going to take anything with you so it is an act of good financial planning for the unknown to have a good plan of how your riches will be distributed.
What are the advantages of succession planning?
● Ensure your hard work and success benefits your loved ones
● Protect all you have worked for from being gambled away when you are gone
● Avoid unclaimed assets
● Provide for our own elderly care if you are disabled before you die
● Provide for the transfer and continuation of your business once you are gone
● Reduce taxes and court costs and unnecessary legal fees
But… I am not retired
Then again, who said succession planning is for the retired folks only? This is not just for the senior members of society as most people like to imagine. Anyone of us could go at any moment from now and this is the uncertainty of life worth planning ahead for. It is therefore better for you and your benefactors if you quit procrastinating and start making plans on how what you own could benefit them. Even though you feel like you are too young to die just like the majority of us do, it is a reality that young people die every day. It is up to you to make sure your monies do not remain unclaimed in the event of your death. The video below, although old yet the points still relevant, explains the definition of one portion of estate planning- Trust.
Too many people don’t plan
Matters of one’s death are sensitive –no wonder we seldom talk about it. Most people don’t even have to think about estate planning and so when it happens –that is “when” and not “if” –it is their families that are left picking up the pieces and often needing more glue than they can afford. You will be surprised by the number of people with enormous wealth and no will left behind.
Finally, if you insist on this fallacy that you will live forever, you will most likely leave no will behind either. So what happens to your estate when you are not around anymore? The state takes over and divides it up according to the law. You may not like it but you only chance to appeal is now –or theirs is inevitable.