We work hard all our lives to build assets that we may not get to enjoy within our lifetimes. The best we can do is ensure that our hard-earned assets are passed on without a hassle to our successors. Although wealth transfer is not an easy task in general, there are several ways one can ensure that a smooth wealth transfer takes place. Wealth transfer conflicts occur as both the bequeathing and inheriting parties have differing opinions about how wealth transfer should take place. These disputes exist worldwide.
Singapore is no different in these regards; in fact, inheritance disputes are relatively common here. Rightly so, as research shows that the Asian nations own about one-third of the global wealth, it’s no wonder that Singapore, as one of the wealthiest Asian nations, would have many wealth transfers transpiring. Nevertheless, with a proper understanding of the inheritance laws under the Singapore legal system, you can manage this without too many complications.
We have put together a few suggestions to explain how you can make the wealth transfer process easier under the Singapore legal system.
It is vital to have a robust financial plan in place ahead of time. Considering you are planning on a wealth transfer at a later age, your financial plan should be the primary step in your middle ages, years before the actual wealth transfer occurs.
Make sure to familiarise yourself with all the Singapore inheritance laws ahead of time as well. It is not enough to get legal counsel as it is always best to be self-aware for transparency in this regard.
Prepare A Stable Foundation
A robust foundation is one of the ways you can ensure that future wealth transfer takes place smoothly. Part of this foundation for a successful wealth transfer entails the next generation is fully aware of Singapore’s inheritance system’s legal system and structure, along with possible risks. The documentation should be transparent and with beneficiaries being fully aware of every clause. These documentations need to be reviewed for structural changes, changing family dynamics and alterations in the Singapore legal system from time to time.
The best time to lay this foundation is while your inheritors are still young, slowly inculcating them with basic skills of managing their finances. Setting an example of yourself by your thorough financial planning is a great way to educate the future inheriting generation.
Communication is the key to a successful wealth transfer, making it a linchpin of your legacy planning. A lot of wealth disputes in Singapore occur due to improper communication on both ends.
Making your heirs aware of your current financial details along with your future asset distribution plan is a crucial aspect. By doing this, you will ensure that they can clear their queries ahead of time and overtake asset management smoothly when it’s time.
Keep Your Documents Sorted
Maintaining an organised document system is another crucial step towards smooth wealth transfers. Keep all of the files and folders in one specific secure location so that your inheritors do not need to go through the extra hassle when the time comes.
Advisory Help from Trusted Source
This step is arguably the most important as it will play a crucial part in successful wealth transfer. Not only is it vital for you to get trusted advice from your lawyer, but it is equally essential for you to introduce them to your inheritors for transparency.
This will add to the communication process, helping flourish a robust plan for long term requirements related to the future transfer. The beneficiaries can get their legal advice and have their resources ready ahead of time.