The Sandwich Generation refers to people who need to take care of and support both their parents and their own children.
The trends of an increasing aging population and having children at a later age have contributed to the phenomenon of the Sandwich Generation in Singapore.
Estate planning for the Sandwich Generation in Singapore requires one to take into account all of the differing needs and expectations of all three generations in order to adequately safeguard their future as a family.
Here are 3 estate planning tips that the Sandwich Generation in Singapore can consider:
1. Set Up a Family Trust
Family trusts are created to benefit your family beyond your lifetime. You can use it to set aside money for minor children, or for special reasons such as your child or grandchild’s education. Assets under a family trust are protected against creditors and unwanted claims (e.g. from a former partner or business creditors).
2. Make Lasting Power of Attorney (LPA)
For all members of your family above the age of 21 years old, it is recommended that everyone makes an LPA to be protected against mental incapacity. Work with your parents and children to have yourself appointed as their donee, this gives you the authority to make decisions on their behalf without delay legally. It is also helpful when you need to handle affairs for an adult child. Application fee for the LPA form 1 is waived for Singaporeans who apply before 31 March 2023.
3. Make Central Provident Fund (CPF) Nominations
Making a CPF nomination is an important aspect of estate planning to ensure that the CPF savings will be distributed according to the owner’s wishes in the event of his or her passing. You can decide from 3 types of nominations available; cash, Special Needs Savings Scheme (SNSS) or Enhanced Nomination Scheme (ENS).
Do You Need a Lawyer To Make an Estate Plan?
With the responsibility of multi-generations on your shoulder, you definitely want to avoid dying without a will if you belong to the Sandwich Generation in Singapore, for the way your assets will be distributed according to the Intestate Succession Act might not be suitable for your circumstances.
While you do not need a lawyer to do so, the process of crafting an estate plan or making a will in Singapore can be challenging for a person with no prior knowledge in this field thus it is recommended to engage professional help to ensure that you avoid common mistakes when writing a will so that the chances of its validity being contested are decreased.
If you are planning to write a will and require the service of an estate planning lawyer, or have any questions about will writing in Singapore and require professional estate planning assistance, feel free to get in touch with us.