Should you DIY or pay someone to draft your will in Singapore?

by  in Tax & Estate Planning
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It’s a misconception in Singapore that it’s necessary to hire a lawyer to draft a will. Nothing could be further from the truth. Anybody can draft a will for you. In fact, if necessary, you can even write your own will, and it can be a perfectly valid will after you pass on.

While drafting wills does tend to lie within the domain of most estate-planning lawyers, many wills-drafting companies have also sprung up to service these needs. These companies usually don’t have any lawyers or even anyone legally trained but they survive by keeping themselves up to date on the existing law and marketing themselves heavily.

However, just because you can write your own will without having to spend a single cent doesn’t necessarily mean you should DIY. While it’s not impossible for the determined layman to pick up, there are a number of statutes and laws to get your head around if you want to make sure your will is drafted correctly.

You might want to take a look at this will-drafting guide if you’d like to draft your own will.

At the very least, you should be conversant with the Wills Act (Chapter 352) before embarking on writing your own will.

Advantages and Disadvantages of Drafting your own Will

Advantages

  1. There’ll be zero costs as you’ll be drafting the will yourself. All you need is a pen (or more likely, a word processor).
  2. There’s the added benefit of learning and picking up a new skillset.
  3. Anytime you need to update your will, you won’t have to make an appointment with a lawyer or will-drafting company. You can just do it yourself.

Disadvantages

  1. Exclusions will not be caught. It’s relatively easy to miss out on certain beneficiaries in a will. Someone who drafts your will, be it a lawyer or someone from a will-drafting company, will usually review your list of beneficiaries and ask you in-depth questions to make sure your will is an accurate representation of how you want your assets to be distributed in the event you pass on.
  2. There’s a higher propensity for error. It’s more difficult for someone without legal training and experience in wills and probate law to be able to perfectly draft a will. There are numerous grey areas in the law that a layman might completely miss out on or misinterpret.

Advantages and Disadvantages of Paying someone to Draft your Will

Advantages

  1. It’s relatively affordable to hire someone to draft a will for you nowadays. Simple wills tend to start from around $180. Complex wills can be more expensive but if you have a lot of assets in different countries, you probably won’t want to be drafting your own will as well.
  2. Hiring someone to draft your will ensures peace of mind, particularly if you’ve hired a lawyer to write your will. There’ll be less chance that a beneficiary will contest probate in the event of your passing and you’ll feel more assured that there won’t be errors in the will.
  3. Most estate-planning lawyers in Singapore can advise you on the whole estate-planning process, as opposed to merely the drafting of the will. Your lawyer can also assist you with getting a Lasting Power of Attorney and help your executors with extracting the Grant of Probate upon your passing.

Disadvantages

  1. You’ll have to incur costs to get peace of mind. While the price of having a will drafted is relatively cheap, you do still have to pay for it.

Conclusion:

There’s no real right or wrong answer here. If you’re willing to spend the time and effort to learn the relevant laws and statutes surrounding wills, it can be a fruitful exercise to write your own will.

However, if you’re not willing (or unable) to spend the time to pick up will-drafting, it’s probably in your best interest to go to a professional will drafter, preferably a lawyer. The last thing anyone needs is a will riddled with errors. A DIY will that’s poorly drafted can save you money in the short term but create a mess for your heirs when you’re gone.

Author Profile:

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

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Avoid Making These Costly Mistakes As A Parent Of A Teen Driver

by  in Transport & Motoring
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Having a teenage driver is a breathtaking experience that can keep Singaporean parents awake at night. It is normal to worry about the safety of your child on the open road where anything can happen.  Who am I kidding? Even my parents are terrified that I am driving as a young adult.

If you do not want to pay for increased insurance premiums or medical fees, here are three mistakes that you need to avoid…

MISTAKE #1: SETTING AN EARLY BLASTOFF

Ah, the teenage brain! How does one begin to describe the wiring of the “teenage brain”? For starters, it is marked by the significant to the rewards prompted by taking risks. Researchers from the University of Texas found that teenage brains were craving for adrenaline-fueled rewards. This explains why they lean toward extreme activities. The teenage brain may be harmful when mixed with the ability to drive a vehicle.

The minimum age to acquire a Qualified Driving Licence in Singapore is 18 years old. Just because your beloved can start driving at 18, does not mean that he or she needs to be behind the wheels at a young age! Having your teenager wait makes a financial sense. Time may not only give your child maturity, but it may also reduce your car insurance premium.

MISTAKE #2: PURCHASING A NEW RIDE

Most Singaporean parents want to give the best for their children. The idea of buying a shiny ride for your newly licensed driver may have crossed your mind as a devoted parent. You might rationalize your purchase by thinking that a brand new car is safer and more advanced. However, an expensive car costs more to insure. Not to mention, you are handing the responsibility to a fairly experienced driver. Are you brave enough to tackle these risks?

Let me highlight the total cost of owning a car (i.e., excluding miscellaneous, maintenance, parking, and petroleum fees). 10 years of owning a car may cost you about S$138,723. This whopping amount includes the Certificate of Entitlement, Total Car Loan Value, Road Tax, COE and PARF Rebate, and Car Insurance.

Consider purchasing a used car as a training ground for your teen. This will teach him or her the value of saving up. Isn’t it more thrilling to drive an impressive car with the money that you worked hard for?

MISTAKE #3: FAILING TO ENFORCE THE LAWS

As I said a while ago, the teenage brain is wired to embrace adrenaline-fueled situations and rewards. This factor may increase the risk of breaking the traffic laws and getting into vehicular accidents. Teenage drivers generally face greater restrictions than other drivers. The main restriction is the age limit.

Last year, a horrific accident involved an under-aged driver (i.e., aged 17) and a motorist at the junction of Ang Mo Kio Avenue 5 and Ang Mo Kio Industrial Park 2. The motorist was badly injured and his passenger died instantly. The teen driver suffered from emotional distress after realizing the gravity of his actions. He was even bullied online. Under the law, the penalty for hit-and-run accidents is a fine of up to S$3,000 or imprisonment of up to 12 months.

Image Credits: pixabay.com

Image Credits: pixabay.com

Similar scenarios may be prevented with careful guidance from the parents. I am not saying that you are solely responsible for your young driver’s every move. But, you have a heavy influence on it. Start by educating your child about the traffic laws and by serving as a good role model of a responsible driver. Use foresight by enrolling your teen in a local driving school such as the Singapore Safety Driving Centre (SSDCL) or the Bukit Batok Driving Centre (BBDC). These institutions were registered for Basic Theory Test, Final Theory Test, and Practical Driving Test.

Sources: 1 & 2

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Do You Have A Financially Toxic Friend?

by  in Lifestyle
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Whether you notice it or not, the people whom you interact the most with are likely to shape your financial decisions. Some outcomes are less positive than others. The truth is, you may not be able to change the personalities of the people around. The only thing you can change is your exposure to these people.

Filter out toxic financial relationships by distinguishing these people from the rest:

The Dollar-Pincher

There is a huge difference between prioritizing your spending and conserving because you do not want to spend your wealth! “Dollar-Pinchers” see money as a tool that they must conserve at all cost. They aim to spend a little money as possible (i.e., synonymous to a cheapskate or a miser).

Let us be realistic. Many of us have encountered a friend who seemingly dissolves when the bill arrives. To save you from an embarrassing moment with the waiter and to keep your Dollar-Pincher quiet, you opt for paying his or her share. Doing so entails that you will spend more than your allotted budget.

The Investigator

As the name suggests, the “Investigator” digs deeper into your life to reap information that you would normally share with your trusted financial planner. He or she desires to know how much you made, saved, and spend. You need to be especially careful if the Investigator is a co-worker. You see, this type of friend is least likely to be concerned with your well being. Anything you say may be used against you.

When it comes to painting my future, I am not afraid to test the waters. I have had several occupations and there was one thing that I noticed. My Investigator friend would constantly pry into my professional life. He would ask me how much my current job offer was and how much my monthly salary is. He goes even further by asking if what was offered was higher than my previous job. Needless to say, we are no longer friends.

Image Credits: pixabay.com

Image Credits: pixabay.com

The Show-Off

If you are a frequenter of various social media platforms, you probably came across a friend who has a seemingly successful life. The “Show-Off” brags about his or her financial capacity by sharing his or her local and international endeavors. It is especially hard when you are roughly the same age as your friend and you find yourself making comparisons between each other’s progress.

Regularly bombarding yourself with friends who display or tell you how great they are doing with their finances can trigger unhealthy emotional responses. You may start doubting your monetary choices or start feeling depressed with your career. Please realize that you do not need to keep up with the Show-Off! Simply focus on what you are doing right with your finances.

The Wheedler

Be careful! You do not want to be misguided by the “Wheedler”. This type of friend uses flattering words and thoughts to entice you to spend beyond the bounds of your financial capability.

To put things into perspective, let us say that you are shopping with your chum Atiqah. You wanted to buy an expensive dress that you do not really need. Instead of politely suggesting to skip on the dress, Atiqah encourages you to purchase it immediately. She continues to shower you with exaggerated pleasantry until you give in. If you cannot change the Wheedler’s ways, you must only bring the amount of cash that you are willing to spend with him or her.

Image Credits: pixabay.com

Image Credits: pixabay.com

It is time to turn the tables around. Search within yourself and examine whether you have been financially toxic to others. Are you willing to change for the better?

Sources: 1 & 2

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Expert-Approved Ways To Increase Your Financial Intelligence

by  in Personal Finance
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Throughout the course of our lives, many of us have experienced unpleasant economic periods. These are characterized by times when money the budget seems to cut short or when money seems to run low. Experiencing these periods every once in a while is acceptable. However, you have to take action if you are constantly living from pay check to paycheck. Boosting your financial intelligence is one way to improve your current circumstance.

Online resources define financial intelligence as the collection of knowledge and skills reaped from understanding personal finance and accounting principles. Why is this important? For starters, applying your financial intelligence to money management will help you reach your monetary goals.

On that note, here are 4 Expert-Approved Ways To Increase Your Financial Intelligence:

BY MAXIMIZING YOUR BUDGET

Managing your finances starts with building a realistic budget. To strengthen said budget, you can either decrease your monthly spending or grow your streams of income. Both of these methods can solve the budget crunch. However, the latter provides longer lasting effects according to bestselling author Robert Kiyosaki. Kiyosaki’s arsenal of financial books includes the “Increase Your Financial IQ” book. The title says it all!

When it comes to budgeting, he stresses that time and money are very crucial assets. He believes that people who are going through rough times should spend less money on unnecessary purchases and more money on productive matters (e.g., self-promotion or continued education). Maximize your budget by prioritizing the important categories.

BY MODIFYING YOUR THINKING

Sometimes, the only person who keeps you from becoming financially successful is you! Your thoughts and beliefs dictate your money decisions. Imagine what will happen to your finances if all your thoughts are clouded by irrational beliefs and negative thoughts. Conquer the darkness by shifting your mindset.

Focus your thoughts on stretching your means and you may eventually find ways to earn more money. As financial coach Cindy Brochu once said: “Getting smarter means thinking smarter!” Let your money-savvy mindset guide you to the decisions that you need to take.

BY IDENTIFYING ESSENTIALS FROM NON-ESSENTIALS

People who are low in financial intelligence experience difficulty in distinguishing between their necessities and momentary “cravings”. For instance, you may see many impulse buyers during the Great Singapore Sale. These shoppers will simply purchase items for the sake of it or for the sake of flashy discounts. Trouble boils when these shoppers use credit cards as their only means of purchase. Piles of debts may rain on their finances for years. If only they had the ability to identify the essentials from the non-essentials!

So, ask yourself whether you could do without it in the future. Do you really need to buy a Prada bag and a humidifier?

BY EXPANDING YOUR KNOWLEDGE

Knowledge fuels your financial power. Robert Kiyosaki believes that the wealth of the person does not purely rely on real estate and other tangible assets. He says that it depends on the information and knowledge you have about money. Simply, financial intelligence makes one rich. Let us put his ideals into perspective. Purchasing a new set of golf clubs will not improve your game, but paying for golf lessons will.

Other ways to expand your knowledge on money include attending local finance seminars, reading informative books (e.g., Intelligent Investor), and downloading financial add-ons (e.g., Mint.com app). These methods are all recommended by Mark Riddix. Mark Riddix is the author of “Your Financial Playbook” and the president of an investment consulting firm.

Image Credits: pixabay.com

Image Credits: pixabay.com

I have to be honest! Following the above strategies for a few days will not make you financially intelligent. It does not happen overnight. You need to work on these for the next few years in order to build healthy habits. Doing so will add more order and discipline to your financial life.

Sources: 1, 2, & 3

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