Estate Planning Flashcards
What happens when there is no will?
- Intestate Succession Act (Non-Muslim Estate) -
Refer to slides
6 Benefits of writing a will?
- Distribute accordingly
- Minimise conflicts
- Appoint guardians, executors, trustees
- Speed up distribution
- Minimise unnecessary costs
- Avoid “common disaster”
What is not covered in a will?
- Jointly-held assets (Bank and Investment Account)
- CPF Savings
- Certain insurance nominations
- Irrevocable trusts
What is the minimum age for Testator and the 2 Witnesses?
At least 21 years old
Who cannot be witnesses?
- Beneficiary
- Spouse of beneficiary
What does the Executor do?
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.
What happens if you have no Will or no Executor?
Letters of Administration –> Appoint appropriate people to deal with a deceased person’s estate:
- Estate pass under Intestacy rules
- OR When Executor appointed by the deceased is also dead already
What is a tenancy-in-common?
Where each co-owner holds a separate and definite share in the property.
What is the default payment method for CPF Nomination?
Cash
How does the money flow to nominees through the ENS?
SA/RA –> MA –> Cash (If excess)
OR
MA –> SA/RA –> Cash (if excess)
Situations when you should review your CPF Nomination?
- Death of Nominee (s)
- Marriage
- Divorce
- Birth of Child
What does appointing an Authorised Person do?
- CPF Nomination -
4
- They can obtain your CPF account details (Account statements & Nomination details) upon death
- Nominees can be authorised persons
- They can reconcile your CPF account balances
- Can be more than 1
How many witnesses do you need for CPF Nomination?
2
How many days do witnesses have to confirm for CPF Nomination?
7 days
When do beneficiaries have the right to insurance policies when the deceased passes away?
- Policy bought from a CO-OPERATIVE (Mainly from NTUC Income)
Section 45 of the Co-operative Societies Act
- Can be revoked or rewritten - 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
Who is the donor under LPA?
- Lasting Power of Attorney -
An individual who appoints donees and replacement donees using LPA.
What do donees do?
- Lasting Power of Attorney -
Make decisions on behalf of the person who lacks mental capacity/intellectual disabilities.
What 6 Personal Welfare issues can donees decide on?
- Lasting Power of Attorney -
- Where donor should live and with whom
- Day to day care decisions
- Social Activities to take part in
- Personal Correspondence
- Healthcare matters
- Who the donor is in contact with
What 6 Property and Affairs can donees decide on?
- Lasting Power of Attorney -
- Property & Accounts Management
- Tax Matters
- Investments
- Rent
- Household expenses
- Mortgages
What 5 decisions CANNOT be made by Donee?
- Lasting Power of Attorney -
- Adopting or Renouncing a religion
- Consenting to Marriage
- Making or revoking an Advanced Medical Directive
- Voting at an Election
- Any other matters as prescribed by the Minister for Social and Family Development
When do powers of donees start?
- Lasting Power of Attorney -
When donor loses mental capacity and this is determined via certification by a registered doctor.
When do powers of donees end?
- Lasting Power of Attorney -
- Bankruptcy of donor and/or donee (For property affairs matters only)
- Death of donor/donee
- Divorce between donor and donee (unless specified)
- Donee lacks mental capacity
- When a court order is made
Can donees act jointly?
- Lasting Power of Attorney -
Yes. You can also specify whether they can only act jointly on SOME matters.
Other than appointing donees, who else can you appoint?
- Lasting Power of Attorney -
- Licensed Trust Company
- OR Professional Donees (Lawyers, Accountants, Healthcare and Social Service professionals for “Property & Affairs”
