What’s the point of bringing this up with your parents, though, and is it worthwhile?
The simple answer is yes – it may not matter now but it will later on. By having no plan in place, especially a Will, can actually make the loss of a loved one even more difficult.
We’ll talk about what occurs when they pass away and why it’s crucial to make preparations for their passing. If you have aging parents, you might want to keep reading because we’ll give you some advice on the legacy matters.
What Exactly Is Inheritance Planning?
An estate plan is simply a detailed document plan for how your assets will be distributed after your death. However, with the proper tools, Estate Planning may also boost the amount one can leave behind. Investment and insurance plans can enable a person to contribute more than he or she has.
A person’s assets will be distributed according to their wishes after they die, which is the primary emphasis of retirement planning. There are numerous techniques available to achieve this:
- CPF Nominations
- Insurance Plans
- Will
The purpose of CPF nominations and insurance nominations is to distribute CPF funds and death benefits, respectively. The Will, on the other hand, is used to divide all of a person’s other possessions after he or she passes away.
The primary focus of this article is on the distribution of assets following the death of a loved one through a Will.
Having or Not Having a Will
Whether or not your parent dies leaving a Will can have a substantial impact on the management of their estate.
If a person dies without leaving a Will, the distribution procedure will be more time consuming and expensive. Bereaved families might expect to wait around three months longer before receiving any payouts from the estate of a deceased individual who did not leave a Will. Furthermore, if a person dies without making a Will, the manner in which their estate is distributed is predetermined by law.
Impacts of Not Making a Will
The government does not manage your asset distribution.
If my parents die without leaving a will, the government will take care of the distribution, right?? Honestly, this is not going to be the real case. As the next of kin, you are completely responsible for taking care of the deceased’s affairs.
Your next-of-kin will need to apply to the Singapore Courts within six months of your parents’ death to begin asset distributions in accordance with their wishes. A Probate Application is what you’ll need to complete this process.
If one or both of your parents dies without leaving a will, this is referred to as an intestate death. It may take the Courts 6-9 months to complete a Letter of Administration in this case, which is the end result of a Probate Application filed by a beneficiary. For those whose parents had a will, the result of their Probate Application is referred to as a Letter of Probate, and the Courts typically complete such an application within three months of receiving it.
If your parent(s) do not have a will, your inheritance will be distributed according to state law.
The Intestate Succession Act governs the distribution of your parent’s estate when they die intestate. According to this Act, a share of the estate is automatically distributed to the surviving spouse and children.
Your siblings are entitled to an equal share of the inheritance under the Intestate Succession Act.
But if your parents have a will, the Intestate Succession Act does not apply, and their estate is instead distributed in accordance with their wishes.
This division may appear unjust, particularly if one sibling takes up the bulk share of caring for the parents . Certainly, the dynamics of each family are unique. With a will, your family will not be burdened with undue financial burdens at a time when they are grieving and need to focus on other matters.
It takes around three months longer to handle a death without a will.
Why is the processing time varied, and why are the results different? Simply because it’s a different approach.
In most circumstances, whether your parent(s) died away intestate or not, the Probate Applications would demand an estimate of the total assets held (i.e. the amount of the Estate), and a list of the assets that were actually owned at the time of dying (also known as the Schedule of Assets).
The Probate Application varies in the sense that it specifies who is authorized to distribute the assets. It is necessary for the courts to take an additional step in deciding who is entitled to administer the distribution of assets if there is no Will (i.e. intestate).
It is necessary for the courts to consider applications from next of kin during the Probate Application procedure for a person who has died intestate, and decide who should be given the right to distribute assets. This also indicate that
lawyers will have to make additional legal documentation to be submitted to the court.
In contrast, when a person dies with a will, the people who will be able to transfer their assets have already been agreed upon – in the Will (i.e. the Executors).
A Probate Application takes longer to process because of the additional requirements and the time needed to complete the process.
In addition, the legal expenses associated with a Probate Application for an intestate decedent are often expensive as more documents are required.
If your parents don't have a will, it might cost you a lot of money.
A significant amount of time is required to complete the Probate Application.
When parents have long-term medical conditions or need palliative care, it is not common for their children (or other next-of-kin) to take out personal loans or seek out funding in order to cover the costs of their care. In most cases, the proceeds from the sale of assets in the estate will be used to repay the loans.
These expenditures do not come cheap in the latter phases. When a person dies without a will or intestate, the additional time it takes to process Probate Applications leads to an accrual of interest because the debts are to be repaid from the estate. The longer it takes to acquire Probate and begin making distributions, the more interest will accumulate on those debts.
If a person dies without leaving a will, the expense of seeking Probate in intestate instances might put a greater financial strain on the children of the deceased.
It's Simple to Create a Will
These days, you may make an LPA or a Will totally online from the privacy of your own home using websites like WillCraft. If you want to prevent problems, only use services associated or partnered with law firms. After all, wills are significant legal documents and wills that don’t include all of your assets might result in wasted time and money .
When you can plan your estate from the comfort of your own home, it makes it easier for you to have the difficult talks you need to have.
Conclusion
It is, without a doubt, a difficult topic to have with your parents about death. In the unfortunate event that something happens to your parents, having a plan in place will help ease the burden on you and your family during this terrible time.
When you can plan your estate from the comfort of your own home, it makes it easier for you to have the difficult talks you need to have.