When it comes to planning for the future, estate planning often takes a backseat to more immediate financial goals, such as saving for a home or preparing for retirement. However, as women in Singapore increasingly take charge of their financial independence, estate planning has become an essential component of securing one’s legacy and ensuring loved ones are cared for.

Whether you are in your mid-30s with growing responsibilities or in your 50s and looking to solidify your plans, estate planning is not just about wealth – it is about creating peace of mind and clarity for those you care about. Here is a comprehensive guide to estate planning essentials for women in Singapore, with key considerations to help you take the right steps.

Why Estate Planning Matters for Women

1. Protecting Loved Ones

For many women, family is at the heart of their lives. Proper estate planning ensures that your assets are distributed according to your wishes, reducing the likelihood of disputes among family members. It also ensures that dependents, such as children or elderly parents, are financially supported.

2. Preserving Your Hard-Earned Wealth

Whether you own property, investments, or other valuable assets, estate planning safeguards your wealth from unnecessary taxes, fees, or legal complications. This is particularly important for women who have worked hard to accumulate assets or who may have inherited family wealth. For instance, if you own a condominium worth SGD 2 million
and investments valued at SGD 500,000, proper planning ensures these assets are passed down efficiently.

3. Addressing Unique Challenges

Women often face unique financial challenges, such as career breaks for caregiving, a longer life expectancy than men, and potential income gaps. For example, women in Singapore have an average life expectancy of 85 years compared to 81 years for men (source: SingStat 2022). Estate planning is a way to address these challenges proactively and ensure financial security for yourself and your loved ones in the long term.
Key Considerations in Estate Planning

Estate planning in Singapore involves several crucial elements. Here are the main areas to focus on:

Writing a Will

A will is the foundation of any estate plan. It provides clear instructions on how your assets should be distributed. A well drafted will can help avoid legal complexities and potential conflicts among among family members and loved ones.

In Singapore, if you pass away without a will, your assets will be distributed according to the Intestate Succession Act, which may not align with your wishes. 

A will allows you to:

Designate beneficiaries for your assets
You can make specific provisions for beneficiaries, including setting up trusts to manage assets for young or vulnerable individuals, ensuring they receive support in a structured way. If you wish to leave assets to friends, distant relatives, or organisations outside your immediate family, a will is essential. Without one, these individuals or entities might not receive anything from your estate.

Appoint guardians for your minor children
If you have children under 21, a will allows you to designate a legal guardian to care for them, if both parents pass away. This can provide peace of mind knowing that your children will be provided for and cared for by someone you trust.

Specify an executor to manage your estate
This person will be responsible for ensuring that your assets are distributed according to your instructions, paying off any debts, and handling any other administrative tasks.

Tip: Regularly review and update your will, especially after major life events such as marriage, divorce, or the birth of a child. For example, if your estate includes a property worth SGD 3 million and CPF savings of SGD 500,000, clearly detailing how these should be distributed can save your family significant legal hassle.

Setting Up a Lasting Power of Attorney (LPA)

An LPA allows you to appoint someone you trust to make decisions on your behalf should you become mentally incapacitated. This is a crucial step to ensure that your financial and personal welfare are managed according to your preferences.

Tip: Along with establishing your LPA, do look into your Advance Medical Directive (AMD) as well. 

“An Advance Medical Directive (AMD) is a legal document that one signs in advance to inform the doctor treating oneself (in the event of terminal illness and unconsciousness) that one does not want any extraordinary life-sustaining treatment to be used to prolong one’s life. Under this Act, Singaporeans who wish to make an AMD can do so.” (Source: Ministry of Health Singapore Guidelines)

A doctor who is licenced to approve an LPA could also be authorised to set up your AMD. My own family physician was able to do both for me.

Nomination of Beneficiaries

Many financial assets, such as CPF savings, insurance policies, and bank accounts, allow for beneficiary nominations. Ensure that these nominations are updated and consistent with your overall estate plan to avoid conflicts or confusion. For instance, if you have SGD 200,000 in CPF savings and an insurance policy with a sum assured of SGD 500,000, making clear nominations ensures the funds go to the intended recipients.

Trusts for Asset Protection

Trusts are a powerful tool for protecting assets, especially if you have dependents who may need financial management or protection. A trust allows you to:

Safeguard assets for young children until they come of age
Provide for family members with special needs
Preserve wealth across generations

For example, a trust could ensure that SGD 1 million in assets is distributed as SGD 10,000 monthly payouts to a dependent child over 8 years instead of as a lump sum.

Understanding Estate Taxes and Fees

Although Singapore does not impose inheritance tax, other costs such as legal fees and administrative expenses can diminish the value of your estate. For instance, probate fees for an estate valued at SGD 2 million can range between SGD 2,000 to SGD 6,000. Planning ahead can minimise these costs and maximise the value passed on to your beneficiaries.

Common Missteps to Avoid

Estate planning can be a complex process, and there are several pitfalls to watch out for:

Procrastinating: Delaying estate planning can leave your loved ones in a vulnerable position. Start early to ensure your wishes are documented and legally binding.

Overlooking Contingencies: It is important to plan for contingencies such as remarriage, blended families, or unexpected changes in your financial situation. For example, if you remarry and fail to update your will, your new spouse may inherit your entire estate under the Intestate Succession Act.

Ignoring Professional Advice: Estate planning involves legal, financial, and emotional considerations. Working with an estate planning professional ensures that your plans are thorough and compliant with Singapore’s laws.
Actionable Steps to Secure Your Legacy

Here are some steps to help you get started:

Assess Your Assets: Create a comprehensive inventory of your assets, including property, savings, investments, and personal belongings. For example, list down your assets such as a condominium worth SGD 1.8 million, bank savings of SGD 250,000, and jewelry valued at SGD 50,000.

Identify Your Goals: Consider what is most important to you – whether it is providing for your children, supporting charitable causes, or ensuring a smooth transfer of wealth.

Consult Professionals: Work with a lawyer, financial advisor, or estate planner to craft a plan tailored to your needs. A typical estate planning package in Singapore may cost between SGD 1,500 to SGD 5,000, depending on complexity.

Communicate Your Wishes: Discuss your plans with your loved ones to avoid surprises and ensure everyone understands your intentions.

Review Regularly: Life circumstances may change. Review your plan every few years or after major life events to keep it up to date.
Let’s Secure Your Legacy

Estate planning is not just about wealth – it is about creating a roadmap for the future and protecting what matters most to you. By taking the time to plan ahead, you can secure your legacy and provide peace of mind for yourself and your loved ones.

If you are ready to take the first step in your estate planning journey, reach out for a consultation. Let’s work together to create a plan that reflects your goals and values. Call +65 6252 8500 or visit my website https://karentang.sg/consultation/ to schedule your appointment.

Take control of your future today!