Hi Mr.Tan,
Can you share with me your views on Estate Planning and its implications with the removal of Death Taxes? Is Estate Planning still relevant in Singapore?
I'm just trying to understand how much is left in Estate Planning after the removal of Death Taxes. The text books talk about Estate Preservation, Estate Distribution and Estate Creation in view of succession planning.
While this is all academic, I was hoping you could share some insights into some percularities or blind-sided areas on a more practical front.
REPLY
The important components of estate planning are:
a. Identify the assets in your estate
b. Buy insurance to provide funds to pay the estate duty (not required now)
c. Decide how the estate is to be distributed on your death (this is done through a will)
d. Appoint the people to manage the estate.
If you estate is substantial, it is better to transfer your assets into a separate trust now, and appoint trustees to manage the trust. You can be one of the trustees. This trust becomes part of the estate on your death.
I will invite my blog readers to share other perspective of estate planning.
Whole life plan is dead. It has lost its use. I wonder what the insurance agents would come with next to convince you to buy whole life plan.
ReplyDeleteTo buy for next generation? How many can afford?
I missed out the news on Estate Duty of Death Tax. Can someone fill me up with more information?
ReplyDeleteThanks.
Collin, estate duty has been abolished. This was announced by the M of Finance in the recent budget speech. You can search Google for the announcement.
ReplyDeletehttp://www.simplywills.com.sg/node/25
http://www.prlog.org/10051481-singapore-abolished-estate-duty-tax-with-immediate-effects.html