Most people find it difficult to discuss with their parents about estate planning, and Will writing, so I've put together a list of things you might want to consider if you expect that your loved one is passing on soon.
Having a plan for the eventuality of your loved one's death is extremely important. But, why is it so crucial to do so, and is discussing about it with your parents really worth the pain? Not having a plan, and in particular a Will, can actually worsen the experience of going through the death of a loved one.
If you have elderly parents, you will want to read this post till the end - we will cover some tips as to how to bring the topic up for discussion.
What is Estate Planning?
Estate Planning refers to the process of creating a plan to distribute one's assets when you have passed on. Tools such as investment and insurance plans can allow a person to give more assets than what he/she already has.
These are the tools you can tap on to distribute a person's assets after he/she has passed on:
Nominations for Death Benefits from Insurance Plans,
CPF nominations, and
A Living Will and Testament (also known as a Will)
CPF nominations allow us to distribute CPF monies, whereas the Will serves to distribute all other assets that we possess at the time of our passing.
This article will focus mainly on distributing assets through a Will.
Difference Between Having a Will and Not
The key difference would be the duration and monetary cost of the distribution process. Without a will, the beneficiaries of a person who passes away will have to wait around 3 months longer before receiving any distributions. Moreover, these beneficiaries would likely incur more legal fees during this extended period of waiting.
What Happens with the Absence of a Will?
The government does not help you with the distributions
The time taken by the Courts to process an application of someone who has passed on without a Will may take up to 6-9 months. However, if this person had a Will, the Courts will be able to finish processing the application in about 3 months.
This difference in timing is due to the Courts needing to take an additional step to conclude who should be able to distribute the Assets. Additionally, lawyers making the application have to prepare extra documents to submit to the Courts.
Default distributions
If your parents pass on without a Will, the amount of distributions allowed will be governed by the Interstate Succession Act. The Interstate Succession Act states that the estate must be distributed equally between you and your siblings.
In contrast, if your parents had a Will, distributions would not be dictated by the Interstate Succession Act, but rather, the instructions on the Will itself.
How to create a Will?
Online services like WillCraft have made the writing process much easier than it had ever been before. Just ensure that you choose services that are affiliated or partnered with law firms to prevent any issues from cropping up.
These online services allow us to complete our Wills online in the comfort of our homes, and they therefore facilitate in starting difficult discussions regarding Wills and death in a secure and private environment.
Conclusion
Conversations regarding death are extremely hard to get through, especially when these conversations are held with your parents. Nonetheless, it is crucial that these talks are held to save you money and time in the future. If you have any questions about will-writing, feel free to contact me at 97901583.
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