Have you wondered what are the few major mistakes when developing your own estate plan?
In this article, we will let you know what are the common mistakes that commoner like you and me will make while drafting your own estate plan.
Not Making A Will
One of the major mistakes for Singaporeans is that they think that will writing is not essential because they do not have enough assets.
The truth of the matter is that, no matter how big or small your assets, even if it is a few hundred dollars in the bank account, it will form part of your estate.
And if you do not determine who should have the amount, then it will be based on the intestate law.
The process to retrieve the amount if a person passed on without a will takes very long and therefore, we strongly encourage anybody to write a will to determine how you want your assets is distributed.
Not Making CPF Nomination
Most Singaporeans do not make their Central Provident Fund (CPF) nomination. As CPF savings cannot be included in the Will, it is important that you make your CPF nomination.
There are total 3 ways to do your CPF nomination:
- Cash Nomination: Your nominee(s) will receive the CPF savings in cash.
- Enhanced Nomination Scheme Nomination: Your nominee(s) will receive the CPF savings in their CPF accounts.
- Special Needs Savings Scheme Nominations: This kind of nomination allows their special needs children to receive the CPF savings on the monthly basis
All you need to do is to:
- Decide on the nominee(s) and the percentage to each of the nominee(s)
- Have the following information of your nominee(s)
- Full name as in NRIC
- NRIC Number
- Mailing address and email address
Not Making Proper Estate Planning
You should engage a proper and detailed estate planning professional to plan for your estate.
The reason is because an estate planner can help you to maximise your assets.
For example, if you would like to leave $1million to the next generation as part of your legacy planning, you can actually purchase a term insurance or life insurance so that in the event of death, a lump sum will paid out to your nominee(s) as according to your will.
Drafting your LPA in Singapore is also one of the tools that is able to help you in the event that the person is mentally unsound to make decision for themselves.
So, let’s do not procrastinate and contact us by leaving your details so that we can get in touch with you shortly.
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