The Art of Graceful Exit
When it comes to end-of-life planning, most people leave it to chance. That is less than ideal. Smart and responsible people plan for what happens to their family and loved ones when they are no longer around. Life can be so unpredictable. You don’t want to leave your loved ones scrambling to make arrangements. Instead, you will wish for them to stay happy and continue to live their lives peacefully. You would also wish that they remain harmonious and supportive towards each other even after you’re no longer around. If you have businesses or properties that need to be handed over, you plan for them to be handed over as seamlessly as possible.
Which is why, you need to plan for a graceful exit.
Here are 7 things to consider making arrangements for, before your time on Earth is up, and then you can exit gracefully.
#1
Your Will
Contrary to the common misconception, you don’t need to be very wealthy to make a Will. A good Will is one that is comprehensive. A comprehensive Will takes care of the various potential scenarios to avoid family huddle and conflicts. One of the common areas where people can miss out on, is indicating the substitutes / contingencies for beneficiaries / executors / trustee / guardian. These take care of the scenarios where the original intended beneficiaries / executors / trustee / guardian pre-deceased you.
These days, there are many avenues to write a Will. While it is possible to use a Will template found online, it is unwise to do so, because you never know what you could miss out on. An experienced Will Drafter, albeit a little more pricey, ensures your loved ones are well-taken care of upon your passing on.
And if you own overseas assets, you may need to write multiple Wills to address the distribution of these assets too.
#2
Your CPF and Insurance Nominations
We are aware that we buy life insurance so that our loved ones are protected financially when we pass on. However, most people tend to forget to make nominations of beneficiaries. And if no Will were made, or that the Will made was not found, the insurance payout goes into your estate and gets distributed according to the Intestate Succession Act (ISA). This means that your loved ones have to apply to the Court (for the Grant of Letters of Administration). This is so that they are able to administer your estate. As you can imagine, this can be a lengthy process. If your family relies on the insurance payout to tide through financially, you would not want them to go through this process. It can be especially difficult for them during the grieving period.
This applies to CPF monies as well.
And if you have made the nominations before marriage, remember to update your nominations after marriage, especially important because you now have children to provide for.
#3
Advanced Medical Directive (AMD)
This is a legal document that you sign in advance to inform the doctor treating you (in the event you become terminally ill and unconscious) that you do not want any extraordinary life-sustaining treatment to be used to prolong your life.
Making an AMD is a voluntary decision. However, if you are concerned with the potential financial resources drain burdened upon your family (when you become terminally ill and unconscious), it is a good idea to do so.
Read more at https://www.moh.gov.sg/policies-and-legislation/advance-medical-directive
#4
Lasting Power of Attorney (LPA)
A LPA allows a person who is at least 21 years of age (‘donor‘), to voluntarily appoint one or more persons (‘donee(s)‘) to make decisions and act on his/her behalf if he/she loses mental capacity one day. There are two broad areas in which a donee is appointed for: personal welfare and property & affairs matters. Generally speaking, it is a good idea to have 2 different entities to take care of each of the respective areas in your life for checks and balance.
#5
Care for your Dependent(s), &/or Business(es)
Do you have young children or children with special needs to take care of? What do you wish for them in the event when you pass on?
If you are a business owner or co-owner of a business, how will you pass on the business to your successor, or if not, your business partner? How will your shares in the business be distributed? Can your spouse or children take over your share in the business?
This is a non-exhaustive list of questions, but this is a good starting point for consideration.
#6
Funeral Arrangements You Prefer
Although this may be a morbid subject matter, it is an essential area to make arrangements for. This may include the choice of your funeral home, type of casket, decision on announcement or obituary, location of your wake, number of days for the wake, extent of the wake and funeral and whether you want burial or cremation. This list may not be exhaustive, and the extent or preparation really depends on your preference.
#7
Digital Accounts (Assets) that You Own
We live in a digital world today. One of the things that many people forgot to think about when planning is deciding what they would do with their social media account(s) when they pass on. Also, with the many bills and statements going electronic, how will their loved ones access their accounts to do the necessary?
When planned well, these 7 areas will form the base of your end-of-life planning. On top of these, you may want to also use a Death Box Checklist to consolidate and organise the key information your loved ones will need when you pass on. Contact me if you like more information.
