When should we review our Estate Plan, or Will?

We wish that estate planning can be an one-time affair, but circumstances in life can change as we live our life journey. Regularly reviewing and updating your estate plan in Singapore is essential for several important reasons:

#1 Major Life Events may have happened.

It could be marriage, divorce, birth of children or grandchildren, or premature death of executors or beneficiaries, acquisition of new assets etc. These changes may significantly impact the way we intend to plan for our estate plan.

#2 Asset Ownership may have changed.

The assets we own may change. For example, we might buy or sell property, change investment portfolios, or open new financial accounts. It could also be changing from Joint Tenancy to Tenancy-in-common for our properties. Reviewing and updating our estate plan ensures that all our assets are included and distributed according to our wishes.

#3 Beneficiary’s Financial or Marital Status may have changed.

When a beneficiary goes through divorce or bankruptcy, the assets that are bequest to him or her may be subjected to them being part of matrimonial distribution or to be handed over to the Official Assignee for the administration of the bankruptcy. This can go against the intent of providing immediate cash liquidity for the beneficiary in the event of our demise.

#4 Regulatory Laws may change.

There have been discussions about re-introducing back wealth or estate duties back to our tax system. Although we do not know what will happen in future, we know that Singapore’s laws and tax regulations may change. That’s why we need to be informed about these changes to ensure our estate plan remains relevant with our intentions.

#5 Economic Conditions may have changed.

Economic conditions, interest rates, and investment markets can affect the value of our assets. Reviewing and adjusting our estate plan can help with optimising the distribution of our estate.

Concluding Remark

The key objectives of setting up an estate plan is for a peace of mind. To ensure that our estate plan remains effective and aligned, it is necessary that we regularly review and update our estate plan. Where there are things that need to be clarified, it is advisable to consult a Professional instead of leaving it to chance, or worse, to consult the Internet for advice. We die only once, and this one-time affair should be planned carefully so that we do not pass on unnecessary burden to our surviving loved ones.