Wills & Estate Planning

Wills & Estate Planning

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Plan now before it is too late!

If you don't plan your estate now, the Singapore government will do it for you by using Intestate Succession Act to distribute your assets when you pass on. This means that your assets may land in the wrong hands. Your family and loved ones may not get what you have intented them to have. You can avoid much problem and headache for your family if you have properly planned your estate.

Articles

True Life Stories on Why Estate Planning is Important

My Story

My father died in 1958 when I was only 5 years old. He left nothing behind except some
shares in a goldsmith shop which he used to work. The goldsmith shop was doing good
business in the 1960's and 1970's. Regularly they give dividends to shareholders.

While the share amount we have does not amount much, we still get $100 or so as dividends.
At that point of time, the money value was very big (you can get a cup of coffee for only
10 cents and a bowl of noodles for 30 cents.)

As my mother was illeterate, she does not know how to proceed to transfer the shares to her
own name. Hence, the shares were in name of the estate of my father.

At that point of time, the coporate tax rate was 40%. This income was assessed under Form T by
the Singapore government. Rightfully, with the little income my mother had at that of
time, we should not be paying such high taxes. We "lose" these monies for more than
25 years until I took action to transfer the shares to my own name by applying to court for
an administration letter.

Don't get yourself caught in same situation like mine. Get an estate planning for the benefits
of your family and for your own ease of mind.

Eric's Story

Eric was born into a very rich family. His father was a towkay in Malaysia and owned thousands
of acres of rubber plantations. He was born with the golden spoon in his mouth.

He had a fantastic childhood. Every things he wanted, he gets. He lived in luxuries provided
by his very rich father.

Unfortunate for him, when his father died, he became a pauper. Reason was that his mother
was the "second" wife. As only Muslim can married more than one wife with the law recognising
all the wives, for Eric's case, this is not so. The legitimate wife gets all the assets leaving nothing
for Eric's mother.

Eric lamented that if his father was smart enough, he would have bought insurance for his
mother's benefits. If his father has met a good estate planner, he'd be advised to set up a trust
fund specially for his second family or have a will specifying the amount to be allotted to his
second family on his demise.

Realising the importance of financial planning, Eric became an insurance agent when he grew up.

While we don't encourage having "second family", same principle can apply to other cases --
e.g. if you have been supporting an invalid sibling, your demise can mean financial difficulty
for him or her. Having an estate planning being done will help you to make provision for him or her.