Estate planning is the process of anticipating and arranging for the management and disposal of a person’s estate during the person’s life in preparation for a person’s future incapacity or death. – Wikipedia
Technically, anyone who is above 21 years of age who has some assets should consider doing up an estate plan.
The common tools are:
- Nomination
- Joint ownership
- Last Will
- Lasting Power of Attorney
- Advance Medical Directive
- Advance Care Planning
- Business Succession
- Trusts
- Family Office
As the house is held in joint-tenancy, if either of you passes, the surviving spouse will inherit the entire house. However, if both pass on at the same time, the house will be distributed according to the Will of the younger spouse or according to the Intestate Succession Act. Distribution of joint assets need to be carefully considered too.
CPF money can’t be included in any Will. We need to make a separate nomination. The advantages of making nomination is to distribute the CPF money as you wish and it will be paid out quickly.
Section 30 of Civil Law Act indicates that the older spouse is deemed to pass on first. In which case, the joint assets will now belong to the younger spouse. If the younger spouse has a valid Will, the joint assets will be distributed according to the younger spouse’s Will.
If I make a nomination for my insurance policy, the policy proceeds will be given to the nominee quite quickly. On the other hand, you need to fill in a separate nomination form for each and every policy even all the policies are bought from the same insurance company.
Yes, you can. Naming 2 executors to act jointly has its own challenge. You need to be absolutely sure that both executors always agree with each other.
We recommend to have a separate Will made for assets in each country.
Yes, muslims should also make estate plan. On the other hand, there are many elements to be considered and it’s best left to an Islamic Estate Planner.
Generally speaking, a trust is an instrument to hold assets for some vulnerable beneficiaries which include young children, elderly folks, physically or mentally challenged persons, person unfit to manage money.
We don’t recommend to include that in the Will as wake and funeral arrangement must be carried immediately upon the passing of a person. Not many of us will read the Will immediately after the passing. The instruction might not be carried out if the Will is only read days after the passing.
Usually, clients will keep their Wills at a place they feel safe yet accessible. We don’t recommend keeping it in the safe deposit box in the bank.