I’m still single. Why do I need to write a Will?
I totally get it. When I was single, writing a will was not the first thing that came to my mind. I was building a career, finding love, and living my life to the fullest. At that time, I thought that I was already being responsible as I bought myself a medical card and a couple of life insurance policies.
Fast forward to today, after servicing 2500+ breadwinners in the areas of estate planning, I realised that estate planning is more than just having a will written. I discovered that it involves the usage of Life Insurance, Will and Trust to not only leave behind a legacy but also to care for yourself financially, especially if today, you are single.
In this quick guide, I’ll share 5 reasons why you should consider having a proper estate plan even if you are single today.
Reason 1: It’s a Sign of Maturity
I believe it is by no accident that you are taking time to read this quick guide.
Personally, I salute you for it as it shows that you are a matured person and you have a desire to be financially responsible and to care for your family members. Why? This is because I find that a person with a higher maturity level would like to be a sincere contributor or provider to his loved ones. Over here, as you read on, you’ll learn how you could bless your loved ones and save them a headache by having a comprehensive estate plan. So, let’s move onto:
Reason 2: It Speeds Things Up
If a person passes on without a Will, his possessions such as bank accounts, cars and real estate shall fall under his estate and shall be frozen. Without a Will, the possessions would most likely be distributed to his parents.
But, the process to unlock the estate is anything but easy.
Why? This is because the parents (beneficiaries) will need to seek legal advice, apply for Letter of Administration (LA), find sureties, collect assets and settle all outstanding debt and taxes of the deceased before pocketing their stakes in the estate. The entire process will take 2-5 years and it would be longer if there are any hiccups and delays along the way.
So, if you have a Will, it makes things a lot easier. Why?
This is because you can appoint an executor to administer your estate if you are to pass on prematurely. The executor appointed will help your beneficiaries to apply for the Grant of Probate (GP), collect assets, settle all of your outstanding taxes and debt and distribute the estate accordingly. By having a Will, the entire process of transferring your assets to your beneficiaries would be much shorter with 1-2 years, instead of 2-5 years. Also, the executor is the one managing the whole thing and thus, saving your beneficiaries an administrative nightmare.
Reason 3: Customisation
Without a Will, your estate will most likely be distributed to your parents. This is in accordance with the Distribution Act 1958.
But, if you write a Will, you may choose your beneficiaries and dictate the what, the who, and how much they could be receiving from your estate. For instance, you can name your siblings, relatives, friends, and charitable organisations that you wish to support to be beneficiaries of your estate.
In other words, without a Will, you’ll let the government decide what to do with your estate. With a Will, you dictate what’s best for your own estate.
Reason 4: Comatose and Total Permanent Disability (TPD)
Now, this is a tricky situation.
Think about it. You may have purchased a couple of life insurance policies. They all cover TPD. So, let’s assume that you had met with an accident which left you either TPD or comatose. The question is, ‘Will your life insurer or insurers make payment of the sum assured to you?’
Well, the answer is Yes.
But, this leads us to the next question, ‘How will you get access to the money?’
Remember, you are either TPD or comatose. Who else will have your username and password to login into your online banking account if you couldn’t access it by yourself? In other words, you could receive RM 1 million from the insurance company and have no access to it.
Who then shall be paying for your medical and nursing fees, if you fail to access the monies? This is where you may set up an Insurance Trust or a Private Trust to resolve this issue. You can read my article if you are interested in knowing how to do so.
Reason 5: Will You Remain Single Forever?
Well, I hope not and I wish that you’ll find your happiness one day.
Here’s the thing. We could not predict when exactly you will be married or have kids. As I write, you could be either making plans for your wedding now or have a desire to be married in the future or even if you think that you will never ever get married today, don’t discount it because life itself is so unpredictable.
Typically, couples buy life insurance policies to safeguard their financial interest after getting married. If the husband and wife duo are young at below 30 years old, their premiums would be a lot cheaper as compared to if another husband and wife duo who get themselves married at the age of 40 years old. Do not be surprised if you find that the premiums could differ by a whopping 50+% based on the age gap of 10 years.
In short, it is best to buy life insurance policies at a younger age as it is cheaper.
Now here, let me share with you a tip.
You can set up an Insurance Trust where you could name your parents and your future wife and children to be beneficiaries of your life insurance policies. Also, you can even dictate how the sum assured shall be distributed to your parents, your future wife, and children, and even yourself if you passed on prematurely, TPD or diagnosed with a critical illness.
In short, there are a lot more to be explored when it comes to safeguarding the financial future of your loved ones and yourself. It is a misconception to believe that estate planning is catered only for the rich and married. If you are single, it is very helpful for you to have yourself a customised estate plan.
If you wish to explore for more ideas, please do feel free to book a 30-minute private session with our estate planning consultant by filling the details below: