Drawing Up A Will And Estate Planning
The decision to leave clear orders for what you want done with your money when you pass away or become incapacitated is referred to as estate planning In Singapore - Global Eye Singapore. In cases where the estate and value of assets is large, a legal professional may need to get involved.
In general, drawing up a will can be the only step needed, but sometimes, you might also need to set up a trust.
Many people choose to leave this task for the very end, which leads to trouble and confusion for the family and heirs once the owner has passed away.
The Need For A Will
While most countries have default regulations governing the equitable distribution of the assets if there is no will or trust left behind, in order for one to choose how the wealth is distributed, a valid will is required.
It gives you full autonomy of who gets how much of a part of the funds, giving you the ability for instance, to leave some part of the estate to your parents, grandparents, or step children.
This will prevent the heirs from having to go to court over the inheritance matters, and you could also choose to benefit a charitable cause, or give to a needy friend.
In The Absence Of A Will
Regardless of legal professionals and probate lawyers stressing the need to make a will when the opportunity arises, many people fail to do this during their lifetime.
In cases where there is no valid will after the person passes away, the estate is distributed according to the laws of the land.
A worker, known as the public trustee gains control of the assets, and becomes charged with transferring the items. This includes the compensation owed to the person from the government, any items left behind in safety deposit boxes or lockers, private vehicles, any shares owned in publically traded companies, and deposited money.
Important Persons For The Purpose Of Inheritance
If a will is not present, the applicable legislation provides strict guidelines to be followed.
The entire estate is supposed to go to the spouse if the person has had no children of his or her own. If the person had children, half of the total estate will go to the spouse, while the other half will be distributed between the children.
The parents of the deceased are not entitled to any of the estate if the spouse is alive.
The Creation And Purpose Of A Trust
In a large number of cases, especially given many couples in Singapore chose to have children later in their lives, the children might be minors when the parent dies. This is where making a trust is most practical.
The main objective is to put control in the hands of a trustee, ensuring for instance, that the money is spent at a steady pace, and handed over fully when they come of age.