Estate Planners And Do I Need One?

What is Estate Planning?

Estate planning involves careful organisation and decision-making regarding the fate of your assets and properties after your passing. Its primary aim is to ensure that these assets are distributed as per your desires, guaranteeing the financial security of your dependents. Typically, estate planning entails drafting a Will ¹ and, on occasion, establishing a Lasting Power of Attorney ² to handle your financial affairs if you become of unsound mind during your lifetime. It is the process of anticipating and arranging for the management and disposition of a person’s estate throughout his or her life, in the event, the person becomes incapacitated, and following death in Singapore.

In Singapore, typical estate planning tools include:

• Wills

  Wills are essential in estate planning as they dictate how assets are distributed after death. They designate beneficiaries, appoint guardians for minors, outline executor roles, and even make provisions for pets. A Will ensures that the distribution of assets are managed according to your wishes upon your passing.

• Lasting Power of Attorney (LPA)

  Making a Lasting Power of Attorney (LPA) is crucial in estate planning as it allows individuals to appoint trusted persons to make decisions on their behalf in the event of mental incapacity. This ensures that their affairs are managed according to their wishes, providing peace of mind for both themselves and their loved ones. LPAs help streamline decision-making processes and avoid potential disputes over asset management and healthcare choices.

• CPF Nominations

  Making CPF Nominations is an essential part of estate planning as it allows individuals to specify who will receive their CPF savings and CPF investments upon their death. By making CPF Nominations, individuals can ensure that their assets are distributed according to their wishes. CPF Nominations streamline the asset transfer process and help ensure that beneficiaries receive their entitlements efficiently.

• Life Insurance Policy Nominations

  Making Life Insurance Policy Nominations is crucial in estate planning as it allows individuals to designate beneficiaries who will receive the policy proceeds upon their death. This ensures that the intended recipients receive financial support promptly, streamlining the asset transfer process and providing peace of mind.

• Advanced Medical Directives

  An Advance Medical Directive (AMD) is a legal document that individuals sign in advance to specify their preferences regarding life-sustaining treatment in the event of terminal illness and unconsciousness(i.e. on life support). It informs the treating doctors that the individual does not desire any extraordinary measures to prolong their life. Including an Advanced Medical Directive in your estate planning is crucial as it ensures that your healthcare preferences are respected and followed even if you are unable to communicate them yourself.

  If you wish to make an Advanced Medical Directive (AMD), you can do so by [clicking here](https://www.moh.gov.sg/hpp/all-healthcare-professionals/guidelines/GuidelineDetails/advance-medical-directive#:~:text=An%20Advance%20Medical%20Directive%20(AMD,used%20to%20prolong%20one’s%20life).

How does an LPA fit into Estate Planning?

The Lasting Power of Attorney (LPA) plays a crucial role in estate planning by allowing you to appoint someone you trust to make decisions on your behalf should you become mentally incapacitated. It is a legal document that allows you to appoint someone (a Donee) to make decisions and to act on your behalf should you lose mental capacity. You can appoint up to 2 Donees and it is recommended that you choose someone whom you trust. Including an LPA in your estate plan can help simplify and streamline the management of your affairs during challenging times.

[Please note that with the increasing number of individuals affected by dementia, the government has been encouraging Singaporeans to apply for a Lasting Power of Attorney (LPA). Until March 31, 2026, the usual S$75 fee payable to the Office of Public Guardian for processing the LPA Form 1 is waived. After applying, make sure to get your LPA certified by either a lawyer or a medical practitioner.]

You can apply for an LPA online here. All you have to do is Login using your SingPass, and your personal details will automatically be retrieved from MyInfo. You can then proceed to fill in the rest of the form.

What Can Be Considered as Your Estate?

An estate consists of everything a person owns or controls. It includes both real estate and personal estate ³. Examples of your estate can include:

• Properties (e.g., homes, land)
• Bank accounts (e.g., checking, savings)
• Life insurance policies
• Company shares
• Stocks and bonds
• Vehicles (e.g. cars, boats)
• Personal belongings (e.g. jewellery, artwork)
• Business interests
• Debts owed to you
• Digital assets (e.g., websites, cryptocurrency)
• Other investments (e.g. mutual funds, precious metals)

[Please note that this does not include monies in your Central Provident Fund (CPF) ⁴.]

How does making CPF Nominations fit into Estate Planning?

• CPF Savings

Estate planning in Singapore involves careful consideration of various assets, including CPF savings. It is important to make a CPF Nomination to ensure that your savings are distributed according to your wishes upon your passing since CPF savings cannot be distributed via a Will. By specifying beneficiaries for your CPF savings, you can prevent administrative delays and unnecessary fees for the estate. Put simply, the individual(s) you have nominated to receive your CPF funds will receive all your CPF monies. Proper estate planning can help secure the financial future of your loved ones and ensure that your assets are distributed as per your wishes.

CPF Nominations your CPF savings accounts are important for comprehensive and effective estate planning in Singapore.

What about CPF Investment Accounts?

CPF investment accounts also fall under estate planning in Singapore. By integrating CPF investment accounts into your overall financial strategy, you can potentially grow your retirement savings over the long term. However, it will be good to review and adjust your investment portfolio regularly to align with your changing financial goals and risk tolerance. Proper management of your CPF investment accounts can enhance your overall estate planning efforts, ensuring that your loved ones are well-provided for in the future.

_[Please note that you cannot make nominations to your CPF investment accounts. As they are considered part of your Estate, and would instead fall under a Will or Intestacy Laws in Singapore.] _

What happens if no CPF Nominations are made?

Without CPF Nominations, your CPF savings will be distributed according to the rules of the Intestate Succession Act in Singapore, which may not align with your wishes. This can lead to administrative delays, legal complexities, and disagreements among beneficiaries. Making CPF Nominations is highly recommended for a smooth transfer of assets to chosen beneficiaries, providing clarity and peace of mind for you and your loved ones.

You can click here to make a CPF Nomination.

Alternatively, you can find more detailed information in our “Wills & CPF - How does CPF fit in my Estate Planning” article here.

Is Estate Planning Only For The Wealthy?

There’s a common misunderstanding that estate planning is solely for affluent individuals. However, it’s crucial for everyone, regardless of wealth. Whether you are a millionaire or not, ensuring the financial security of your family members and loved ones upon your passing is paramount, making estate planning essential for all. Additionally, once your estate plan is established, it becomes simpler to review the value of the estate and make adjustments as needed over time.

Imagine this scenario.

_Let’s consider Paul, a single man in his late 30s working as a teacher at a local primary school. Paul owns an HDB flat valued at S$450,000 and holds an insurance policy with a payout of S$100,000 upon his passing. In this scenario, Paul’s total assets amount to at least S$550,000, which is indeed not a small sum at all! Hence, allocating this sizeable sum requires careful consideration. _

With this in mind, estate planning becomes not just advantageous, but necessary, even for the average Singaporean. By engaging in estate planning, you can ensure that your assets are distributed according to your wishes and provide financial security for your loved ones in the event of your passing.

Why should you plan your Estate ?

Estate planning is extremely important for the reasons listed below:

1. You will have control over how your assets and properties are going to be distributed after you die.

By planning your estate, you will have more control over how your assets and properties will be distributed and who will be your beneficiaries ⁵ In contrast, if you died without planning your estate and writing a valid Will, your assets and properties will be distributed according to the rules of the Intestate Succession Act (Cap. 146) ⁶.

If you are co-owning a property, the distribution of your share upon your death is dependent on whether the property is held under a joint tenancy or tenancy-in-common. In case the property is under a joint tenancy, the surviving joint tenant will inherit your share of the property. However, if the property is held as tenants in common, you have the option to Will away your share to a designated beneficiary.

To know more about the Intestate Succession Act and the rules governing it, we discuss all about it in our article here.

2. You will have control over who takes care of your child/children.

• If you have a Will that appoints a Guardian

By drafting a Will and planning your estate, you can ensure that your children are cared for upon your demise. This involves appointing a testamentary guardian in your Will, who will become their legal guardian and responsible for their well-being.

[Please note that the testamentary guardian will have sole responsibility for your children only if both you and your spouse are deceased. However, if you pass away and your spouse is still alive, the testamentary guardian may share responsibility for your children if your spouse agrees ⁷.]

• If you do not have a Will that appoints a Guardian

On the other hand, if both parents have passed away without a designated guardian in the Will, the court has the authority to appoint any suitable person as the guardian for the child/children upon application of that person ⁸. This process could entail a considerable amount of time.

In order to ensure that your child/children receive the appropriate care and protection, you should plan your estate by drafting a Will and appointing a guardian for your child/children that you trust.

3. You will have control over who manages and distributes the assets and properties in your estate.

• If you have a Will that appoints an Executor

One of the reasons that everyone should plan his/her estate is that you will be able to choose who manages and distributes the assets and properties in your estate.

By drafting your Will, you can appoint an Executor who manages and distributes your assets after your death. This person gains authority from your Will and can represent your estate in legal matters before receiving the Grant of Probate ⁹, minimising the probate process, and saving time and effort. Thus, estate planning lets you select a trusted individual to serve as your Executor.

• If you do not have a Will that appoints an Executor

If you neglect estate planning and fail to appoint an Executor, the court will assign an Administrator to handle your assets. Administrators are like Executors. They settle debts or taxes, manage your affairs, and distribute your assets and properties. Like an Executor, they also have the authority to sell your assets and properties.

Imagine this scenario.

>You own shares in a successful business but haven’t planned your estate or appointed an executor. Suddenly, you pass away without a Will.

Now, the Court appoints an Administrator to manage your business. However, this Administrator lacks understanding of your business operations. As a result, critical decisions are mishandled, leading to financial setbacks and potential bankruptcy.

Moreover, obtaining legal authorisation for the Administrator to act on your behalf takes time, causing further disruptions. Months may pass before the Administrator gains the necessary approvals. During this period, your business suffers.

This situation highlights the importance of estate planning. By appointing a trusted executor familiar with your business, you can avoid such risks and ensure smooth operations even in your absence.

[Please note that an appointed Executor must be of sound mind and not bankrupt. Also, you can appoint up to 4 executors.]

4. You will be able to expedite the division of assets process and disputes can be avoided.

Estate planning offers two key benefits:

• Clear Distribution of Assets

Having a Will ensures that your assets are distributed according to your wishes, reducing the likelihood of family disputes over your estate. Your intentions are clearly and unambiguously stated, providing clarity for your beneficiaries.

• Expedite Asset Distribution

Without a Will, the distribution of assets may be delayed by 3 to 6 months compared to having a Will. This delay can be problematic, especially if your beneficiaries, like your surviving spouse, urgently need access to funds, such as for medical bills. Additionally, the delay can also be caused by the time-consuming process of gathering all the necessary assets. Ensuring timely access to your assets is essential to support your family when they need it most.

Who are Estate Planners, do you need them? and how much do they charge?

Who are Estate Planners?

Estate Planners assist you with preparing a lasting power of attorney, drafting your Will, determining your beneficiaries, appointing an executor and a guardian.** **

But, do you really need them?

Estate planning and drafting a Will can be complex, especially if you have a large family and assets in multiple countries. If your Will is invalid, your estate will be distributed according to the Intestate Succession Act, which may not align with your wishes. In such cases, hiring an estate planner and seeking legal advice may be necessary.

However, this can be costly. For instance, drafting a simple Will can cost you upwards of S$500 in Singapore.

Fortunately, there is a great inexpensive alternative - WillCraft!

WillCraft offers a user-friendly platform and a budget-friendly solution for drafting your Will, taking just under 30 minutes.

With WillCraft, we walk you through the entire process seamlessly. Our platform allows you to select your desired executor, appoint a guardian for your child/children, specify your beneficiaries, and even opt for legal assistance from our own lawyers to review and witness your Will.

While the cost of hiring an estate planner can soar to over S$500, WillCraft enables you to draft your Will starting from just S$99. It’s the most convenient, cost-effective, and straightforward method available for estate planning.

Estate planning is essential for everyone. It’s the best way to safeguard your family, ensure their financial security, and provide for yourself, especially in case of special needs or disability. Not planning your estate can have serious consequences and may unintentionally harm your loved ones. That’s why it’s crucial to start estate planning and consider drafting a Will to keep your family safe and secure.

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Frequently Asked Questions

How does Estate Planning fit into a Will in Singapore?

Estate planning goes beyond just creating a Will in Singapore. While a Will outlines the distribution of your assets after your passing, estate planning involves a comprehensive strategy to manage and distribute your wealth during your lifetime and after you are no longer around. Estate planning in Singapore may encompass various aspects such as life insurance policies, CPF nominations, establishing lasting powers of attorney, and planning for medical decisions, and more. By integrating estate planning into your Will, you can ensure that your wishes are carried out effectively and that your loved ones are provided for according to your intentions.

How to do Estate Planning in Singapore?

Estate planning in Singapore involves several important steps to ensure that your assets are distributed according to your wishes after your passing. Here are some key steps to consider when doing estate planning in Singapore:

1. Take an inventory of your assets: Start by listing all your assets, including bank accounts, investments, properties, and personal belongings.
2. Write a Will: A Will is a legal document that specifies how you want your assets to be distributed after your death. It is essential to have a clear and updated Will to avoid any disputes among your beneficiaries.
3. Appoint an executor: An Executor is responsible for carrying out the instructions in your Will. Choose someone you trust and who is capable of handling the responsibilities involved.
4. Review and update your estate plan regularly: Life circumstances change, so it's essential to review and update your estate plan periodically to ensure it reflects your current wishes and circumstances.

What does an Estate Planning lawyer do and do you need one in your Estate Planning in Singapore?

An estate planning lawyer specialises in creating legal documents and strategies to manage and distribute a person's assets upon their death. They can help you create a Will, establish trusts, designate beneficiaries, plan for tax implications, and ensure your wishes are carried out according to the law.

Whether you need an estate planning lawyer in Singapore depends on the complexity of your assets and your specific wishes for their distribution. If you have significant assets, multiple properties, investments, or businesses, or if you want to ensure that your assets are distributed according to your specific instructions, it may be beneficial to consult with an estate planning lawyer in Singapore. They can provide tailored advice based on your individual circumstances and help you create a comprehensive estate plan that meets your needs and objectives.

What does an Estate Planner mean?

An estate planner is a professional, usually a lawyer, who helps individuals and families organise, plan, and manage their assets and affairs to ensure that their wishes are carried out in the event of death or incapacity. Estate planners typically work with clients to create legal documents such as wills, trusts, and powers of attorneyBy working with an estate planner, individuals can ensure that their assets are distributed according to their wishes, minimise taxes and fees, and provide for the well-being of their loved ones after they are gone.

What is the difference between a Will writer and an Estate Planner in Singapore?

In Singapore, the distinction between a Will writer and an estate planner lies in the scope of services they offer. A Will writer primarily focuses on drafting Wills, which detail asset distribution post-death. Conversely, an estate planner provides a broader range of services beyond Will drafting. These services may include trust establishment, incapacity planning, and facilitating smooth wealth transfer to future generations. While both professionals aid in asset distribution planning, estate planners offer a more comprehensive approach to wealth management and protection. At WillCraft, we serve as a one-stop shop, offering both Will writing and comprehensive estate planning services!