5 Reasons to Create a Will in Singapore

While there has been an increase in the number of younger people making wills in Singapore [1], there still seems to be a lingering taboo over the creation of something Singaporeans perceive to be morbid.

Unfortunately, as the saying goes, nothing is sure in life except death and taxes, and we all need to realize this fact and plan ahead for the future.

Generally, it tends to be a good idea for anyone to create a will. However, it’s even more important in certain situations, such as when you’re married with children, a single parent or blessed with multiple valuable assets.

So without further ado, here are 5 reasons why you should create your Singapore will.

1) To determine who receives your assets.

Generally, if you’re a Non-muslim in Singapore, and wish to distribute your estate in accordance with your wishes, you will have to create a will. If you don’t do so, your estate will be distributed according to the Intestate Succession Act, and this may unfortunately go against your true wishes.

2) To make things easier for your family.

Creating a will helps establish who will take care of the relevant arrangements after you pass on and prevents unnecessary delay and grief during a painful period of time. When you create a will, a person you choose called the executor will apply for the grant of probate and handle the necessary arrangements, which helps minimize any confusion over which member of your family will have to settle your estate after you pass on.

3) To arrange for funeral arrangements and costs.

You may have preferences as to where you wish your funeral to be held, the type of casket and picture you wish to be used, whether you wish to be buried in Choa Chu Kang or cremated, and how you wish for these expenses to be covered. Providing for this in your will can help save your family additional stress from trying to figure out what your preferences would be.

4) Prices are not high.

Many Singaporeans put off having a will written because they’re put off by high prices. However, prices for the drafting of wills in Singapore have fallen throughout the years. Competition between wills-drafting providers and lawyers have made it such that you can have a will drafted for a fraction of the price as you would have paid just a few short years ago.

5) To provide for charitable causes.

Altruism is another reason to draft a will in Singapore. You may be passionate about certain causes and wish to set aside a portion of your wealth for charitable organizations you wish to support. This is a fantastic way to give back to the community and to ensure a portion of your funds is used for a good cause.

Author Profile:

Shen is a writer for Singapore Probate, a website where Singaporeans can learn more about estate-planning matters in Singapore.

[1] http://www.channelnewsasia.com/news/singapore/increase-in-number-of/2184796.html

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Surefire Ways To Save Money On Your Next Income Tax

Anyone who takes part in trade and business is chargeable with tax. It is known that tax rates in Singapore are relatively lower compared to other countries in the world, making it more attractive for individuals and corporations to participate in some form of exchange in business.

Despite the relatively lower tax rates, no one entirely enjoys the act of filing for taxes! This is why you must employ creative ways to save on your next income tax. Consider these suggestions:

1. TAKE PART IN SUPPLEMENTARY RETIREMENT SCHEME

The Supplementary Retirement Scheme (SRS) is part of the government’s financial strategy to help Singaporeans increase their saving as they age. It is a type of retirement savings scheme that is voluntary, where anyone who has an SRS account may contribute any amount they want, which is still subject to a cap. The maximum contribution is capped at S$15,300 in 2016, a slight increase of S$2,550 from last year’s cap.

The more you save for your retirement using the SRS, the less you pay for your income tax. That being said, two apparent benefits are seen when contributing to SRS. The first being, for every dollar contributed to your account, taxable income will be reduced by a dollar. The second being, 50% of your SRS savings will not be taxed. Additionally, you are eligible to spread your withdrawals over a 10-year period.

2. HIT TWO BIRDS WITH ONE STONE

Fulfill your duty as a steward of goodwill and your duty as a responsible citizen by donating in accredited institutions. Several forms of donation are claimable. The following types of donations will qualify you for a double tax deduction (twice the amount of the donation):

a. Cash Donations
b. Shares Donations
c. Computer Donations
d. Artefact Donations
e. Public Art Tax Incentive Scheme
f. Land and Building Donations

For instance, a donation to the Singapore museums that have obtained the Approved Museum Status with the National Heritage Board is tax deductible.

Related Article: Basic Guide To Taxation In Singapore

3. REAP THE BENEFITS OF CPF CASH TOP-UP RELIEF

If you are interested in increasing not only your retirement savings but also the retirement savings of your loved ones, you might want to consider the CPF Retirement Sum Topping-Up Scheme.

You will be entitled to a dollar-for-dollar tax relief at a maximum of S$14,000 per annum. This entails a cap of S$7,000 for the individual and another S$7,000 for the family members (T&Cs apply).

Image Credits: pixabay.com

Image Credits: pixabay.com

Paying income tax can be painful to your wallet. This is why you must take advantage of the many ways to claim tax relief or rebates.

Sources: 1,  2, & 3

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Are You Cut Out To Be A Landlord In Singapore?

While looking out for a flat seems like an easy task, hard work needs to be poured behind the scenes. Ensure that you are prepared to be a landlord by analyzing some of the initial factors:

Are you familiar with the legal regulations?

Much like the systems imposed in many institutions in Singapore, rental property owners need to follow a set of regulations as mandated by the Law. Facets include leases, licenses, security deposits, maximum number of tenants, and eviction matters. These facets are examined by attorneys and other authorities in order to protect the interest of the landlords and the tenants.

It is important to be specific when it comes to written documents in order to have a strong support to your case, shall a dispute arise. Acknowledge the landlord-tenant rights as well as the eligibility standards for renting out a flat in Singapore. For starters, you have to be a Singaporean Citizen who has met the Minimum Occupation Period (MOP) to rent out an HDB flat.

Can you afford to become a landlord in Singapore?

Since your first property is the flat that you are occupying at the present, your investment will be considered as a “second property”. Just because you have a sufficient amount of money saved up for down-payment does not necessarily entail that you can afford to purchase a second property! Remember that you are living in Singapore – one of the most expensive cities in the world.

It will become your responsible to keep up with the ownership fees, maintenance costs, and mortgage. Familiarize yourself with these expenses before taking the significant plunge.

Do you consider yourself as a “people person”?

The media has portrayed landlords as people who exude unpleasant characteristics such as being slow in tenant assistance. If you really want to break this stereotype, you must determine if you are a genuine people person.

A “people person” finds delight when interacting with other people. Some landlords are naturally born with this trait. However, others have to bring extra effort when socializing. Ask yourself these questions:

a. Do you have the capacity to understand the tenants’ needs?
b. Are you willing to actively listen to your tenants’ concerns?
c. Will you tend to the property matters immediately?
d. Are you willing to make upgrades on your property regularly?

Answering these questions will help you determine if becoming a landlord is right for you. I cannot deny the fact that having good communication and interaction skills can help you to attract more tenants!

Image Credits: pixabay.com

Image Credits: pixabay.com

Rental property ownership is one of the most profitable investments for your retirement portfolio. It is also an excellent source of passive income. To know whether you are cut out for the job or not, you must initially analyze the factors above.

Sources:  1 & 2

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The Importance of Your Family Wealth Structuring: What You Need to Know

As the head of a family or household you’ll understand just how important your finances are. The money you have is what keeps your home – and indeed your personal lives – in order, and without properly managing this you run the risk of getting into monetary troubles.

Knowing exactly what to look out for and how to effectively manage money is quite a challenge – especially if you lack experience in handing your finances. There are a variety of different aspects to consider such as where you should invest your money, how to ensure you have enough money and what’s the best course of action for your financial future – certainly a headache for many of us.

Luckily though, there are alternatives and also ways you can ensure you have a solid family wealth structure. In this post then, you’ll find a number of different examples of financial concerns and expenses and why you need to manage these. Then we’ll discuss what you can do to prevent any problems and offer some useful tips for making the right choices with your money.

Family Expenses

In our day to day lives, we have plenty of different things we need to spend money on each month in order to maintain a decent standard of living. Naturally, this is increased depending on if you have more than one child, and ultimately without keeping these in check you may run into debts. Here is a breakdown of some the main expenses you’re likely to encounter:

  • Rent or Mortgage Payments – regardless of whether or not you own or rent a property, the chances are you’ll have some form of payment to make each month. These are often a significant part of your monthly costs.
  • Food bills – the food you eat is another necessity which can again become more and more expensive over the years with a growing family.
  • Utilities – the bills you have to pay can be spread in different payment plans, but the reality is that every day you’ll be adding to your expenses with your use of gas, electricity and water.
  • Taxes – you’ll also have to pay taxes which more often than not will be taken from your monthly salary, what’s more you can also pay council tax on your home or accommodation.
  • Travel – another typical expense is for your travel. From your commutes to work, to taxiing your family around you’ll have to pay for fuel, tickets and/or fares.

Additional Expenses

These are just the basics though, the wealth management of your family can also cover additional costs like:

  • Leisure – the time you spend enjoying your life or socialising can add up over the month.
  • Clothing – you’ll need to buy new clothes fairly regularly, especially if you have a growing family.
  • Maintenance – there may be unexpected issues with your home or your appliances which need to be fixed.
  • Childcare – if you work full time and have a young family there’s also childcare costs that you’ll need to factor in each month.

All of these are aspects you should be budgeting for on a monthly basis.

Savings and Investments

With the money you have left over, you also need to consider what you’re going to do with it. The most obvious step is to open a savings account, but there are also real investment opportunities you should look at.

Heading to the stock markets is one avenue you might want to go down, but another popular choice is to buy additional properties as lets, or to renovate and sell for a profit. With this though you’ll need a decent understanding of finance and how the markets work to ensure you see a positive return.

The Simple Solution

While you can simply look into the markets yourself, or budget each month to manage your investments, if you feel you lack the expertise needed to keep your money secure there are other simple solutions. A sensible choice then is to put your trust into a financial expert to take care of the responsibilities for you.

There are plenty of companies and firms such as Withersworldwide who offer a variety of financial management services, from offering advice on investments to simply helping you look after your money more effectively. It’s also worth choosing an established company with a long history of success, that way you know they’re obviously doing something right with their services.

The Bottom Line

As aforementioned, the last thing you’ll want is to put your family’s welfare at risk by making poor decisions with your money. Consider the above options with investments, or make the smart move and search for expert advice and leave your finances in safe hands. This way you can count on a more secure future, not just in the present but for many years to come.

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Extremely Wrong Reasons To Buy A Home

If you are updated with the latest in property, you will know that Singapore housing prices are trending down. In fact, the private residential property index decreased by 3.83% (or 3.45% when adjusted for inflation) in Q1 2015. However, the downward shift in pricing does not automatically mean that it is a good time to buy your own space.

Buying a home is one of the greatest financial commitment for most Singaporeans. It is a long-term commitment and responsibility that you must carefully plan for. Start by determining what you can afford as well as what you need to pay for. What you can afford depends on your total income, existing debts, savings on-hand, and loan eligibility.

Upon figuring these things out, examine if you are committing to a home for the right reasons. Otherwise, you will be a victim of these extremely wrong decisions…

1. TO EXHAUST ALL THE CONTENTS OF YOUR CPF ACCOUNT

If you are thinking of purchasing a home because you can simply deduct almost all the expenses from your CPF savings, think again! You can use your CPF savings to pay for a part of the home and to service the loan but not for the monthly expenses (e.g. mortgage insurance or conservancy and management service fees). You need to have sufficient cash to pay for these ongoing payments in addition to meeting your current monthly living expenses (e.g., rent and telecom bills).

A better reason to purchase a home is the fact that you already have savings to cover for the upfront payments such as the down-payment, agent’s fees, and stamp fees.

2. TO SUPPLEMENT YOUR “STABLE” JOB

Are you fond of your current occupation? How long have you been in the organization? Are you confident that your position is stable for the next couple of years?

The truth is, you can never be 100% sure that your job is secure. You can argue that CEOs or founders of the company can keep their jobs for the longest time but then again there’s the case of the Lehman Brothers. When deciding on whether or not you shall buy a flat, consider your current job situation as well as the workplace climate. To be sure, hold off a few years and grow your savings first before making this important investment.

3. TO SATISFY YOUR NEED TO MOVE

If you love the thrill of moving to a fresh nest and constantly changing your neighborhood, you will realize how difficult it is to sell your relatively new home in a short period of time without encountering a big loss. This is because most people prefer homes with better home equity. You cannot build a high value of ownership for your flat overnight!

4. TO COHABITATE WITH YOUR CURRENT PARTNER

As Nelly’s song goes: “Lovers to friends…why do all good things come to an end?”

With relationships, you have little to no certainty about what happens in the future. You may be in the best terms now but who can really be sure that you will end up together forever?

If purchasing a flat together is your solution to fixing an unstable relationship (even if you are engaged), what will you do if your partner suddenly vanishes? Or perhaps if he or she goes unemployed after a few months? You will have to carry the burden of the mortgage and all the monthly costs on your own. This poor reason for housing commitment will affect your credit.

Sources: 1 & 2

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