More than just making a will, plan well to help your family
Many people prefer not to discuss or plan for what happens after they have a medical problem or after they die, but not planning can cause significant difficulties for your family. TODAY File Photo
Along with preparing documents such as a Lasting Power of Attorney (LPA) and a will to manage your affairs when you can no longer do so or you are gone, it is important to make preparations so that the rest of your assets are managed the way you want, too.
One essential decision is medical care.
When a family member is very ill, families often have to make difficult decisions about how to take care of the person, even if they have virtually no chance of recovery. Without knowing the sick person’s wishes, families may pay for care for years.
One woman, for instance, told TODAY that her father-in-law was bedridden in a nursing home for more than a decade, incapable of eating, speaking or moving.
One option is to use Advance Care Planning (ACP), which Tan Tock Seng Hospital describes as a process of discussion on care preferences among you, your family and healthcare providers. Since research by Singapore General Hospital some time ago showed that many relatives do not know what care their relatives want, the discussion can be quite helpful.
While ACP is not legally binding, you can create a document describing the type of care you would prefer if you are unable to make healthcare decisions. The ACP guides doctors, patients and their family in making decisions based on the patient’s values and preferences.
Another document to consider is an Advanced Medical Directive (AMD), which is legally binding. The AMD tells your doctor that you do not want any life-sustaining treatment if you become unconscious and death is imminent.
Whether you sign an AMD often depends on your personal beliefs and preferences.
If you do decide to use an AMD, you will need to have your doctor and another witness sign it, then deliver it to the Registrar of AMDs.
MANAGING OTHER ASSETS
If you want your accounts, properties, shares, club memberships and other assets to be managed the way you want after you are gone, you can take practical steps beyond just having clauses in your will to state who gets what.
To make sure your spouse and family members have enough money funds to tide them over, Ms Wong Hur Yuin, a partner in law firm Wee Swee Teow LLP, told TODAY, one practical suggestion is to have a joint account with enough money to pay your bills for some time. The joint account should require just one signature rather than the signatures of both parties, so that either person can access the money at any time.
If your joint account holder passes away, can often withdraw the money before informing the bank about the death. Taking out the money avoids a situation where a bank freezes the account. The withdrawn funds should be placed in a separate account, so you can keep track of all the expenditures made with the funds.
It can also be very helpful to put together a list of all your assets, so that your family has an easier time tracing what you own.
Keeping your will, and this list of your property, insurance policies, accounts, other assets and contact details of the law firm that prepared your will, can prevent misunderstandings or problems later on. Even if the list is not up-to-date, Ms Wong commented, it gives the family a start on where to look.
You should also make sure you nominate beneficiaries for your insurance policies and your Central Provident Fund (CPF) monies so that those funds go directly to the people you want, quickly and easily. CPF monies cannot be dealt with in a will.
YOUR NON-FINANCIAL WISHES
If you have children who are minors, you should appoint a backup guardian under your will, to cover a situation where your spouse dies before you. If your children are beneficiaries of your will, the assets can be managed by the executors or trustees of the will until they come of age.
It would be wise to appoint two trustees rather than one where there are minor children, Ms Wong noted.
If you have other wishes that are not or cannot be specified in your will, you can put them in a list that you keep together with the will.
You may want to let your relatives know who should care for your pets, for instance, or what to do with your ashes. While it is not legally binding, your family will know what you would prefer.
And if you are wealthy enough, you may even want to consider having your money go into a trust so that your assets are managed more effectively and in line with your wishes.
While a trust may be set up at any time, assets that you put in a trust will be under the control of trustees who have to follow the instructions and purposes specified in the trust document.
Many people prefer not to discuss or plan for what happens after they have a medical problem or after they die, but not planning can cause significant difficulties for your family. It is better to overcome your reluctance and make life easy for the people you care about the most.
