Estate planning is the process of protecting and managing your wealth, considering your objectives, legal and tax considerations. Contrary to popular misconception, it is not only for the HNW (High Net Worth Individual) but for anyone who wants to protect, preserve, and pass on the wealth accumulated to another person in the most straightforward ways possible regardless of their marital status. Having worked hard to accumulate your wealth, would you want someone else to decide what to do with your wealth and who to inherit it?
Frequently Asked Questions (FAQ)
Why do I need to plan my estate?
The few critical reasons why you need to plan your estate are:
- To minimize potential family strife and clarity for your beneficiaries on the steps to take in the event of premature death.
- To distribute and protect your wealth for your children and grandchildren.
- To reduce tax, where applicable depending on the location of your assets.
What are the ways to distribute my estate?
The two main instruments used are Wills and Trusts, each of them with different objectives. Hence estate planning takes time, complexity dependent on your goals and is a personal journey. But this is a journey a person should take before ill health, deterioration of mental capacity, and other unfortunate events overtake the person and/or family, including sudden death, divorce (pending and post-divorce), business partners dispute, and change of any personal circumstances.
Can I include my financial consultant or accountant in the discussion?
While your financial consultant is responsible for your wealth creation, we are concerned about your wealth protection. Hence please include your financial consultant in our initial discussion. Before having any third party outside of your immediate family in the discussion, please note that your written permission is required before including any third party outside of your immediate family.
Must I include my family members in the discussion?
As estate planning is a personal journey, there is no need to do so. However, it is always beneficial to include those closest to you as a good practice unless you want to keep the arrangement or part of the meeting confidential.
I vaguely remember I have a Will or signed a document to that effect.
While it is good to bring that document to the meeting, there is no need. Each estate planning is a fresh start. We provide a secure digital platform to store your copy if required and part of our maintenance service.
What is a pre-nuptial agreement?
The concept of a pre-nuptial agreement is a contractual agreement between two parties before they enter into a marriage. It is contractual if the couple is divorced, and the purpose is to inform the pending husband or wife that certain asset/s before the marriage is not to be considered part of the marriage assets. In Singapore’s context, there are restrictions on what is allowed in such a contract. For example, the custody of any potential child cannot be determined in advance regardless of the couple’s decision.
I am about to remarry /or becoming a single parent soon and what can be done regarding wealth protection-continuity?
Managing changing life challenges is part of wealth planning and protection, and specific legal structures can be instituted to reach those objectives.
Can I buy a property under trust for my child below 21 years of age?
You may do so, considering certain restrictions.
Can I buy a property for my adult child, who is about to be married, but I want the ownership of the property to remain with my adult child after marriage?
It is common for parents to gift properties to their children as a wedding gift, and a legal structure can be created to fulfil the parent’s objectives.
I am a business owner and would like to protect my shares in the partnership/company
The necessary legal structure needs to be in place while you are still running the business to ensure the smooth passage of handing over your company to the remaining partners/shareholders while protecting the interests of your family members after your demise.
I am not a Singapore citizen or Permanent Resident, and can I create a trust instrument in Singapore?
There is no prohibition on foreigners or non – Singapore residents creating a trust-based on Singapore laws for assets located in Singapore or elsewhere.
I have a current offshore trust, and I like to review the structure.
While it is not common, reviewing your existing structure is an excellent exercise to reduce your cost/s, where applicable, in the face of changing legal, compliance and taxation challenges.
Process and cost
The process will begin with a discussion of the person’s objectives, including the cost. It will take about 30 minutes for the initial free consultation, followed by the recommendation required. If the process takes beyond the first consultation, a fixed consulting fee per session will be suggested. The overall period usually takes between 2 weeks to 4 weeks to complete the assignment. As much as it takes hard work and time to accumulate your wealth, the same amount of attention and care should be given to how you want to protect your wealth.
