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

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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Expert-Approved Ways To Increase Your Financial Intelligence

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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When Is It Acceptable To Splurge Your Money?

This may sound odd to you, but there are some instances where shelling out more will actually help your finances in the long run. You read that right! Just because you saw a glistening opportunity for you to save a few bucks, does not mean that you have to take it. You need to consider your priorities and financial goals as well.

EVENT 1: LANDING YOUR DREAM JOB

Congratulations on bagging a coveted job interview in the company of your dreams! The next step is to prepare for the “big day”. If you are aiming to convey your best image to your potential employer, it is alright to splurge on transport. You may be setting yourself into trouble just because you want to squeeze every cent you have on transport.

Let us face it! Bus delays and MRT breakdowns can happen when you least expect it. Furthermore, you are putting yourself at risk of being late as you are unfamiliar with the location. You do not want to arrive looking sweaty and stressed out due to your commuting woes. So, book yourself a comfortable ride through an Uber or a Grab app.

EVENT 2: BRAVING THE WEATHER

I cannot recall how many times I experienced the country’s dichotomous weather cycles. I found myself shielding from the sun’s rays and experiencing moderate rainfall in one day. Singapore’s weather is generally characterized by high humidity and abundant rainfall. In fact, thunderstorms graced the forecast for the next couple of weeks.

Brave the country’s weather by purchasing a sturdy umbrella from an established store. Cheap umbrellas from the street vendors or the bargain stalls tend to break easily. You see, your frequent S$14 purchases will add up eventually!

EVENT 3: GROWING YOUR WEALTH

It is best to seek professional guidance when you are planning to allocate your retirement savings on an investment portfolio. Yes! It may be cheaper to do things on your own or to do pitch in with a fund manager. However, you need to consider spending money on an Independent Asset Manager.

Most fund managers charge a commission of about 2% for supervising your wealth for you. If your entire portfolio is managed in this manner, you are paying commission for the total lifetime value of your assets. Imagine how much money that adds up to!

Image Credits: pixabay.com

Image Credits: pixabay.com

Taking the Independent Asset Manager route entails that you will only be paying for his or her hourly fees. You may be shocked to know that said consultation meeting can occur as little as twice a year.

Sources: 1 & 2

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Six Financial Beliefs To Have Or To Scrap

TAKE THESE IN

An article by Dr. Matthew James, the President of The Empowerment Partnership, enlightened its readers on the essence of prosperity. He interviewed several people who embodied a healthy relationship with money. This research led him to eight financial beliefs, which the “prosperous participants” agreed upon. Here are just three beliefs to consider:

“Money demands attention.”

Failure to keep up with your monetary affairs can result to trouble. Your mountain of bills and outstanding loans will not disappear on its own! Avoiding your responsibilities may make you blissful for now, but it will haunt you in the long run. Invest your valuable time on getting your finances straight. Pay attention to details and foster realistic commitments.

“The universe wants me to prosper.”

Dr. James stresses on the influence of the “Law of Attraction” towards money. Made popular by self-help books, Law of Attraction is the belief that we receive the energy that we emit to the world. Cultivating positive thoughts brings positive experiences. While, focusing on negative thoughts brings negative experiences. The effect of our thoughts is apparent when it comes to money or the lack of it. Re-frame your thoughts to resemble your financial behavior.

“Money will respond to the instructions I give it.”

Compared to other areas in our lives, our believes surrounding money is probably more limiting. Realizing that you are in control of your finances will enable you to be accountable for your actions. Although the beautiful Prada bag is tempting, your money follows your instructions. It does not have its own intelligence!

Image Credits: pixabay.com

Image Credits: pixabay.com

The first step that you must take is to set your financial goals. These goals will help guide and motivate you when things get though.

GIVE THESE UP

After knowing about Dr. James’ prosperous beliefs, let us turn the spotlight to the irrational financial beliefs. Following irrational or wrongful beliefs on money might jeopardize your financial health. Awareness is the first step! Expand your knowledge about these three:

“There is an optimum way to becoming successful.”

Say your expat co-worker spent his entire savings on gold investments (i.e., Gold Exchange-Traded Fund). He used his gains to build his own enterprise. He was onto something and so must you. If you believe that one size fits all, you are mistaken. Generalizing is a cognitive bias that you must overcome.

Stick to employing a strategy that will suit your spending habits, financial goals, and current situation!

“Money can buy me people’s attention and love.”

You cannot please everybody, even if you are the shiniest coin in the purse. Having money does not guarantee that you will gain genuine affection and attention from others. It is better to focus on the things that you can directly influence (e.g., loving yourself, seeing your friends, or donating to charity).

“Earning money is a competition.”

Most of us will agree that Singapore unintentionally cultivates a competitive atmosphere from school to working years. For people who treat money as a scorecard, losing money can be immensely difficult. Imagine what will happen to those individuals when unforeseen circumstances (such as layoff and recession) occur! Their self-worth may shrink once their wealth depletes.

Image Credits: pixabay.com

Image Credits: pixabay.com

Instead of placing money as your top priority, put greater value to your family and friends.

Sources:  1 & 2

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