Why do we need an estate plan

Wealth distribution

There’s a saying that ‘We born with nothing and we leave with nothing.’ But fortunate enough, during the lifetime, every individuals in this world do create and accumulate some form of wealth before they leave the world. True enough that when leaving the world, no one able to bring along the wealth they accumulated in this world, only memories will follow suit.

So what will happen to these left over assets? These assets / wealth which left with no written instruction (written Will) shall lead to the court to help them to make the final decision. In other words, the court shall determine on the wealth distribution which may not be the deceased’s intention or the wealth may fall into undesired beneficiary. This may lead to the intended beneficiaries to suffer emotionally and financially. Is this the final wish you want to left to the one you loved ?

We have our loved ones and children who rely on us

You are your family breadwinner. Day in day out, you work as a bee with the hope that we able to support our family financially. And how far have you plan ? What if something hits and you are leaving them without a notice ? Have you pen down which assets to distribute to each and every beneficiary ? Or you are fine with the court’s decision ? Do you know that grandparents are not child’s legal guardian and need to be appointed by the court if no Will in place ?

How about income replacement for your family, children education fees and family daily expenses ? This is important because all assets will be frozen upon death, even you have a Will ? While waiting for assets distribution, you may need to prepare some liquid assets to maintain family’s day to day expenses.

Income replacement plan is vital to cover a sudden disruption in family’s financial when facing sudden death of a family member. If you are concern on whether or not the beneficiary able to handle the proceed wisely, you can consider to set up a Trust. While setting up a Trust, one can pre set the condition inside the Trust Deed to ensure the insurance proceed is being used wisely. Besides, your love can be extended for next generation if one fully utilized the usefulness of Trust.

Ever ready with a back up plan

Have you ever thought of why every household have a water tank ? Water tank is a back up plan just in case there’s a water disruption. Do you have a back up plan for your family if there’s a disruption in family earning due to sudden death ? As we mentioned earlier, all assets of the deceased will be frozen upon death and it takes around 1-2 years to defrost them ? During this grace period, your family may need some liquid assets to maintain their financial needs. Death of a family member often lead to emotional stress and they need time to react and back to their normal lives. If they are taken care of financially, this will surely reduce their emotional stress as well.

In conclusion, everyone needs an estate plan. Don’t have the misconception that an estate plan is only for the rich. In fact, estate planning is for everyone because we all have the person we would like to take care.

Start by writing a Will now!

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