Life Insurance provides the funding aspects and the instant estate liquidity provided seals its place in Legacy planning forever to the extent no other financial tool in the world does that better.
This topic may be taboo for some but it deserves attention because you really don’t want to mess up your end game and cause more problems in death than being alive. Then again, your life can be a living hell especially in cases of mental incapacity without specified persons making decisions in your best interest. Enough reasons justifying this topic, let us take a look at 3 cornerstones.
Upon your passing, all your assets form your estate. The probate process can be costly and heart-wrenching depending on whether you died testate or intestate (without a will). A little summary table can show you the differences.
It is worth noting that CPF monies bypass the probate process through CPF nomination which can be done by walking in to any of the branches. Singapore property laws also make provisions for joint survivorship ownerships which also bypass probate.
Lasting Power of Attorney (LPA)
This is a legal document that you (as Donor) appoint someone (Donee) to make decisions on your behalf should you lose mental capacity. Preferably the donee is a person you can trust and rely upon to act in your best interests.
In event of loss of mental capacity (ie coma or dementia), your appointed donee can handle your personal welfare, property and affairs as well as financial affairs on your behalf.
Advance Medical Directive (AMD)
This is another legal document that allows you to state explicitly that you do not wish to prolong the dying process in the event you are unconscious and terminally ill with no reasonable prospect of recovery. Notice those conditions need to be met to kick in so before that happens, there is also the Advance Care Plan which can be expressed to doctors and they can provide guidance.
All these are just SCRATCHING the surface of full blown legacy planning especially if you got overseas assets in multiple jurisdictions. It is best to seek a law firm where there are complexities beyond the scope of this write up.
I can refer. All else, if you would like a chat, make an appointment. No obligations.
Don’t screw up your end game.