I summarized what Lorna Tan’s article “Why many delay making their wills and trusts” published on July 16, 2017 here for easy reference.
Lack of knowledge on how to go about it, and who to appoint as executor or trustee.
- Lack of awareness of estate planning and how instruments such as wills, family trusts and other options can be used.
- At a national level, no more than 15 to 20 per cent of Singaporeans have drawn up their wills.
- Most people do not know how and where to start their Estate Planning.
- 25 per cent of respondents had foreign assets, which can make issues like probate, estate duty, stamp duties, transfer and capital gains taxes and forced heirship trickier. These people will likely need more specific advice on how they should deal with these assets through the use of a second will, a corporate vehicle or trust.
- 39 per cent of respondents said they did not have enough assets to settle a trust, or felt that their beneficiaries could handle the funds themselves.
- Only around 15 per cent of respondents had done a Lasting Power of Attorney (LPA) and/or an Advance Medical Directive (AMD), with most citing procrastination or ignorance on how to get started.
- A common thread in some of the responses as to why people have delayed drawing up a will or other documents is that they do not know a person they could trust to act as executor or trustee.
- There is more urgency for people aged over 35 to do estate planning. “The person who is above 35 and married with a spouse and children would fit the profile of persons with more pressing needs and thus ready to engage in estate planning.”
- People who are single, divorced or widowed would involve estate planning to deal with their own welfare and property affairs at the time of old age and elderly vulnerability. “This group will be interested in instruments for asset protection of their property affairs and appointment of trusted parties and putting in place advance care plans to deal with mental incapacity and infirmity.”
I will be organizing an Estate Planning Seminar to address most concerns on WHERE and HOW to get your own Estate Planning started. You can sign up the Estate Planning Seminar here.