Estate Planning Basics – Why It Matters
Estate planning isn’t just for the wealthy or elderly — it’s about making sure your hard-earned assets are managed and distributed the way you want, while protecting your loved ones from unnecessary stress, disputes, or financial burden.
1. What is Estate Planning?
Estate planning is the process of organizing how your money, property, and possessions will be handled if you pass away or become unable to make decisions. Think of it as leaving a clear roadmap for your family so they don’t have to guess your wishes.
2. Key Components of Estate Planning
Will – A legal document that states how you want your assets distributed, and who will care for minor children if needed. Without a will, distribution follows intestacy laws (default government rules).
Lasting Power of Attorney (LPA) – Allows you to appoint someone you trust to make decisions for you if you lose mental capacity (medical, financial, personal welfare).
Trusts – Useful for families with young children, special needs dependents, or large estates. Helps to control how assets are distributed over time.
Insurance Nomination – Ensures payouts from life insurance go directly to beneficiaries, bypassing lengthy probate.
CPF Nomination – CPF savings are not covered by wills. You must make a CPF nomination separately to decide who receives it.
3. Why is Estate Planning Important?
Prevents family disputes over inheritance.
Ensures children/dependents are cared for.
Saves time and legal costs by avoiding unnecessary court processes.
Protects your legacy and passes on wealth smoothly.
4. Common Misconceptions
“I’m still young, no need.” → Accidents and illnesses can happen anytime.
“I don’t have many assets.” → Even your CPF, insurance, or HDB flat are considered part of your estate.
“My family will know what to do.” → Without clear documents, decisions can be delayed or contested.
5. First Steps to Take
List down all your assets (properties, CPF, bank accounts, investments, insurance).
Think about who you want to benefit and in what proportions.
Decide who you trust to act as executor (carry out your wishes) or guardian (for children).
Speak to a lawyer or estate planner to draft a will and set up an LPA.
Pro Tip: Estate planning is not a one-time task. Review your plan every 3–5 years or whenever there’s a major life change (marriage, children, buying property).
