Your estate includes everything you own – bank accounts, pensions, property, health care wishes, pets, insurance policies*, investments, etc.
* If the beneficiaries stated in your will differ from the nominees stated in your life insurance policy, the nature of the nomination in the life insurance policy will determine the true beneficiary. If the nomination was a trust nomination (irrevocable nomination), the nominees stated in the life insurance policy shall receive the proceeds. If the nomination was a revocable nomination, and the insurance company received written notice signed by the policyholder, then the nomination is treated as revoked and the beneficiaries stated in the will shall receive the proceeds.
Your CPF savings are not part of your estate and are not covered by your will. If you wish to prevent your CPF savings from being distributed under Singapore's Intestate Succession Act or the Islamic inheritance law, you must make a CPF nomination.
There is no limit to the number of beneficiaries you can name; they can be either a person or an organisation.
Your CPF nomination will state the apportion and allocation of your CPF assets between your beneficiaries. The beneficiaries can receive funds through a one-time cash payout (via cheque or GIRO) under a cash nomination, via a CPF account under the Enhanced Nomination Scheme (ENS), or through monthly payouts under the Special Needs Savings Scheme (SNSS). Your CPF nomination is changeable at any time.
Remember that you must be 16 years old or over and be of sound mind to make a CPF nomination.
For more information on the CPF Nomination Form, click here.
Your estate net value considers your assets and liabilities, fees and expenses, and the type of property owned (if applicable).
Assets - resources that you own and can potentially supply future economic benefits. They can increase your net worth and can help you achieve your financial goals. Examples include cash, property, land, stock, and intellectual property. Make a list of all of these, then check it over again. It is important to update the list when your assets change.
Liabilities – debts or obligations which you need to fulfil in the future. These can come in the form of money owed, goods needed to provide or services required. They come to light out of past transactions and are settled with assets.
Regarding property, the nature of ownership will determine the share of the asset you can hand over.
An estate plan involves planning how you would like your estate distributed after you pass away. It is important to plan for the time when you are no longer able to care for your loved ones, no matter what your age or net worth. Once you’ve put a plan in place, it’s important to update it as your lifestyle changes regularly.
An estate plan helps you decide:
One of the key aspects of an estate plan is your will, which helps you distribute your estate. Your will is a written document that is alterable at any time. If you are unsure as to whether your will is valid, it may well be worth seeking professional advice on the topic.
Before engaging with any estate planning matters, it is important to have an effective set of financial goals in place.
Unfortunately, end-of-life planning is not on the agenda for many young people. One common misconception is that you only need to do it if you’re rich. This series will help you understand that this is not the case!
WHAT IS ESTATE PLANNING? COMPLETED. ✅
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