An all-rounded legacy planning in Singapore generally entails structuring a financial strategy that effectively handles the transfer of wealth and assets to your beneficiaries in a tax-efficient and reliable manner. Every legacy planning strategy is different and planned according to the individual and their intentions, aims and monetary situation while assessing their beneficiaries. In short, there’s no singular way to do comprehensive legacy planning in Singapore.
Many people make the mistake of taking legacy planning lightly, without reevaluating and updating their plans according to the current Singapore legal system. It is pretty common to see people going through unnecessary delays and hassles later because of this, which creates problems for their heirs. To think that all of these complications can easily be avoided, if only you bear in mind these seven easy tips:
Plan Your Estate
A common mistake among legacy planners is the belief that estate planning is exclusive to the wealthy. Estate planning is synonymous and an essential part of legacy planning, and you should do this regardless of the extent of your assets. As part of legacy planning in Singapore, estate planning helps ensure that your properties are distributed following your demise and have a plan in place in unexpected situations.
Having a comprehensive estate plan in place not only helps you probate, but it can also possibly help you towards growing your existing assets while lowering added expenses and reducing taxes. It also helps you sort out extra healthcare expenses or setting aside money for dependent individuals.
Proper Communication About Inheritance
Although a complex and often daunting topic to discuss, having a proper conversation regarding inheritance with your beneficiaries is an essential part of legacy planning. Often legacy planners in Singapore overlook this vital aspect which results in incomplete financial planning and misleading expectations.
This is why it is always better to start communication as early as possible for transparency between yourself and your inheritors. It will also ensure that order is maintained between your objectives and goals regarding your assets while wealth planning stays tax efficient.
With a developing economy and a rise in living costs in general, education costs continue to soar. This is why it is essential to structure your legacy planning in Singapore while bearing the education costs of your posterity in mind.
Do a thorough research of current education costs, primary to higher education and have a proper discussion with your financial advisor. The previous communication strategy applies to this tip. You need to have an open dialogue with your kids regarding their plans and expectations so you can structure your legacy plan accordingly.
Reevaluating Plans Every Few Years
One of the essential aspects of legacy planning in Singapore is reviewing the plans every few years. Generally, in a gap of three to five years, it is preferable to reassess your goals for changes based on current laws in Singapore.
Review After Big Life Events
Another reason for reassessing your legacy plans would be following a life-altering event. Examples of these include marriage, death of a family member, adoption or birth of children, dissolution of marriage, etc. The events can also be a family member becoming dependent on you in a way that you have to prepare for their care.
Reexamine all the Inheritor Designations
Beneficiary or inheritor designations need to be reevaluated once in a while as part of proper legacy planning. Modifications and updates need to be made according to current laws and according to everyday family situations.
For example, if you get life insurance, make sure to list all your beneficiaries in order as stated in your legacy plan.
Think Like Millennials
Considering you are making legacy plans in the 21st century, most if not all of your legacies would be from the millennial era. Their lives have been shaped differently from yours because of the technological boom and many different worldly events, so you must structure your legacy planning by putting yourself in their shoes. To reiterate the second tip, communication is vital.