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financial future > Estate Planning > Flashcards

Estate Planning Flashcards

1
Q

What happens when there is no will?

  • Intestate Succession Act (Non-Muslim Estate) -
A

Refer to slides

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2
Q

6 Benefits of writing a will?

A
  1. Distribute accordingly
  2. Minimise conflicts
  3. Appoint guardians, executors, trustees
  4. Speed up distribution
  5. Minimise unnecessary costs
  6. Avoid “common disaster”
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3
Q

What is not covered in a will?

A
  1. Jointly-held assets (Bank and Investment Account)
  2. CPF Savings
  3. Certain insurance nominations
  4. Irrevocable trusts
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4
Q

What is the minimum age for Testator and the 2 Witnesses?

A

At least 21 years old

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5
Q

Who cannot be witnesses?

A
  1. Beneficiary
  2. Spouse of beneficiary
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6
Q

What does the Executor do?

A

Applies to court for a:
1. Probate
2. OR Grant of Probate

This confers authority to the Executor to deal with the deceased’s estate.

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7
Q

What happens if you have no Will or no Executor?

A

Letters of Administration –> Appoint appropriate people to deal with a deceased person’s estate:

  1. Estate pass under Intestacy rules
  2. OR When Executor appointed by the deceased is also dead already
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8
Q

What is a tenancy-in-common?

A

Where each co-owner holds a separate and definite share in the property.

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9
Q

What is the default payment method for CPF Nomination?

A

Cash

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10
Q

How does the money flow to nominees through the ENS?

A

SA/RA –> MA –> Cash (If excess)

OR

MA –> SA/RA –> Cash (if excess)

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11
Q

Situations when you should review your CPF Nomination?

A
  1. Death of Nominee (s)
  2. Marriage
  3. Divorce
  4. Birth of Child
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12
Q

What does appointing an Authorised Person do?

  • CPF Nomination -

4

A
  1. They can obtain your CPF account details (Account statements & Nomination details) upon death
  2. Nominees can be authorised persons
  3. They can reconcile your CPF account balances
  4. Can be more than 1
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13
Q

How many witnesses do you need for CPF Nomination?

A

2

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14
Q

How many days do witnesses have to confirm for CPF Nomination?

A

7 days

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15
Q

When do beneficiaries have the right to insurance policies when the deceased passes away?

A
  1. Policy bought from a CO-OPERATIVE (Mainly from NTUC Income)
    Section 45 of the Co-operative Societies Act
    - Can be revoked or rewritten
  2. A STATUTORY TRUST is created where the policy is specifically expressed for the benefit of Spouse and/or Children
    Section 73 of CLPA (Before 1 Sep 2019) or Section 49 (2) of the Insurance Act (After 1 Sep 2019)
    - Cannot be overidden
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16
Q

Who is the donor under LPA?

  • Lasting Power of Attorney -
A

An individual who appoints donees and replacement donees using LPA.

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17
Q

What do donees do?

  • Lasting Power of Attorney -
A

Make decisions on behalf of the person who lacks mental capacity/intellectual disabilities.

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18
Q

What 6 Personal Welfare issues can donees decide on?

  • Lasting Power of Attorney -
A
  1. Where donor should live and with whom
  2. Day to day care decisions
  3. Social Activities to take part in
  4. Personal Correspondence
  5. Healthcare matters
  6. Who the donor is in contact with
19
Q

What 6 Property and Affairs can donees decide on?

  • Lasting Power of Attorney -
A
  1. Property & Accounts Management
  2. Tax Matters
  3. Investments
  4. Rent
  5. Household expenses
  6. Mortgages
20
Q

What 5 decisions CANNOT be made by Donee?

  • Lasting Power of Attorney -
A
  1. Adopting or Renouncing a religion
  2. Consenting to Marriage
  3. Making or revoking an Advanced Medical Directive
  4. Voting at an Election
  5. Any other matters as prescribed by the Minister for Social and Family Development
21
Q

When do powers of donees start?

  • Lasting Power of Attorney -
A

When donor loses mental capacity and this is determined via certification by a registered doctor.

22
Q

When do powers of donees end?

  • Lasting Power of Attorney -
A
  1. Bankruptcy of donor and/or donee (For property affairs matters only)
  2. Death of donor/donee
  3. Divorce between donor and donee (unless specified)
  4. Donee lacks mental capacity
  5. When a court order is made
23
Q

Can donees act jointly?

  • Lasting Power of Attorney -
A

Yes. You can also specify whether they can only act jointly on SOME matters.

24
Q

Other than appointing donees, who else can you appoint?

  • Lasting Power of Attorney -
A
  1. Licensed Trust Company
  2. OR Professional Donees (Lawyers, Accountants, Healthcare and Social Service professionals for “Property & Affairs”
25
Q

How many witnesses do you need and who can it be?

  • Lasting Power of Attorney -
A

Certificate Issuer is the witness. (They can be a practising lawyer, psychiatrist, accredited medical practioner.)

26
Q

How long does it take for your LPA to be registered?

  • Lasting Power of Attorney -
A

6 weeks if no valid objections

27
Q

When is the LPA registration form free until?

  • Lasting Power of Attorney -
A

31 March 2023

28
Q

What are the 3 purposes of a Family Trust?

A
  1. Wealth Protection (From creditors)
  2. Wealth Accumulation
  3. Wealth Preservation
29
Q

What are the 3 reasons a Family Trust can be used for?

A
  1. Ensuring maintenance of young kids
  2. Shielding assets from division upon divorce (Purchase of property under child’s name)
  3. Shielding assets should children divorce (Assets in trust are not part of matrimonial assets)
30
Q

How much can you loan from a Family Trust for a property?

A

2/3 of the property value

31
Q

What 7 assets can you put in a Family Trust?

A
  1. CPF
  2. Business
  3. Insurance
  4. Property
  5. Cash
  6. Investment Portfolios
  7. Shares
32
Q

What is a Special Needs Trust Company?

A

Non-profit company that offers affordable trust services for families with special needs members.

Supported by MSF. Funds managed and invested by Public Trustee’s Office.

33
Q

How does a Special Needs Trust Company trust fund work?

A
  1. Set aside money and assets
  2. Principal value are guaranteed
  3. Fees are heavily subsidised
  4. Activated when caregiver dies or is incapcitated
34
Q

What is the minimum sum required to set up a SNTC Trust?

A

$5k (If not the family can apply for donations)

35
Q

What is the Set-Up fee for SNTC Trust?

A

$150 (Subsidised)

36
Q

What is the Annual pre-activation fee for SNTC Trust?

A

$0 (Subsidised)

37
Q

What is the One-time fee when activating trust for SNTC Trust?

A

$40 (Subsidised)

38
Q

What is the Annual post-activation fee for SNTC Trust?

A

$40 (Subsidised)

39
Q

What is the Special Needs Savings Scheme? (Setting aside CPF Savings)

A
  1. Min $250 monthly CPF payouts to child with special needs upon parent’s death
  2. Min $3000 required per year
  3. 0 fees
40
Q

What is Advanced Medical Directive?

A

An instruction to a doctor to not prolong life using artificial means when there is clearly no hope of finding a cure for terminally ill patients or unconscious or incapable to make a rational decision.

41
Q

At what age can you make a Advanced Medical Directive?

A

At least 21 years old + with sound mind

42
Q

How many witnesses do you need to sign on the Advanced Medical Directive?

A

2 (One is a doctor + one is a party who does not stand to gain upon your death)

43
Q

Where can you register for an Advanced Medical Directive?

A

Registrar of AMD with the Ministry of Health

44
Q

How much is making an Advanced Medical Directive?

A

Free (But the Doctor might charge consultation fees for time spent)

financial future (6 decks)

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