Why Estate Planning?
It is a paradox in life that death is certain, but the time of death is uncertain. Therefore, one has to think and act (i.e. plan) to ensure their loved ones can continue to live on, at least financially, should one pass away in untimely circumstances. It is unfair and illogical to leave such important matters to chance. Yet, many don’t plan their estate; many more procrastinate their estate planning.
The other issue about not planning your estate has to do with the law. Depending on your life stage and religious faith, Singapore laws might put your loved ones at a disadvantaged position financially should you pass away without an estate plan. In Singapore, if you are a Muslim, the Islamic law of estate distribution comes into play. The less than adequate application of the estate distribution law can result in unsatisfactory outcomes that do not reflect the fair and just objective of the faith.
A well thought-through estate plan will enable you to secure the necessary financial base for your loved ones. A good estate plan can help you to create a desired estate for your loved ones immediately; protect your accumulated estate from creditors’ risk; and distribute your estate either in a lump sum or periodically to your loved ones depending on the financial maturity of your beneficiary.
If you are a business owner, a well thought-through estate plan will also enable your business to have a smooth succession plan to carry on when you pass away or should you become mentally incapacitated. In most cases and especially in an unplanned situation, the business may simply collapse with bitterness amongst existing stakeholders.
Estate planning is not only concerned about death; it also addresses the issue if you lose your mental capacity. In such situations, you would want to have a secure financial base and trusted people to take care of you. Such planning needs to be done now and not when the unfortunate event happens.
Feel free to browse our articles to find out more about estate planning and how it impacts you and your loved ones.
Call us or drop us an email and our team of experienced estate planning financial advisers will be pleased to serve you further.