October 25, 2023

Categories: Estate Planning - Planning

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New parents make all sorts of plans to welcome their bundle of joy. Would it surprise you if I said an estate plan is one of the most crucial plans to make? “Is that the right order of things?” you might be wondering.

Let me outline how an estate plan is one of the truest testament of your love and care for your children. Creating an estate plan is a loving and responsible step for new parents for several reasons.

When your children are young, it provides:

  • Financial Security: Estate planning allows you to designate how your assets will be distributed after you are no longer around. By doing so, you can ensure that your children have the financial resources for daily needs, education or healthcare. This can reduce the financial stress they might face when you are no longer around to provide for them (especially if they are still at a financially dependent age).
  • Guardianship: An estate plan enables you to specify a legal guardian for your children should something untoward befall you and your spouse. This ensures that their upbringing and care will be entrusted to someone you trust, reducing uncertainty and distress.
  • Inheritance Management: Without a plan, your child may inherit assets at an age when they are not financially mature. An estate plan can specify when and how assets are distributed, ensuring your child receives support when they are better equipped to handle it responsibly.

When your children grow up, it can help to:

  • Minimise Conflicts: A well-structured estate plan can help avoid family disputes and legal battles that might arise over asset distribution. Minimising such conflicts is an act of love towards your children, as it spares them from unnecessary emotional turmoil and possible disharmony in the family.
  • Take Into Consideration Their Special Needs: If your child has special needs, an estate plan can address their unique financial and care requirements.
  • Create A Legacy Of Charitable Giving: If you desire to leave a legacy or support charitable causes, an estate plan can include provisions for charitable donations, instilling a sense of social responsibility in your children.

Having an estate plan can help your children navigate a challenging period with greater security, knowing that their needs have been considered and addressed. It demonstrates your loving commitment to their well-being, and I would be happy to share how you can craft a thoughtful and secure estate plan.

Disclaimer:‍‍‍‍‍‍ Investment carries certain risks. You should not just rely on results as an indication of your financial needs. You should understand and familiarise yourself with any investment and the associated risks before investing. You are also recommended to seek professional advice before making any decision to buy, sell or hold any investment or insurance product. The views and thoughts expressed in the post belong solely to us, and not to Manulife Financial Advisers Pte Ltd, or any other group of individuals.

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