I'm 36 years old with no HDB flat, but I'm writing my will now

Life goes on for everyone else when you are dead.

Belmont Lay | | Sponsored | October 27, 2020, 03:25 PM

When you die, you cannot take anything with you.

This is essentially the problem with life: It simply goes on for everyone else when you are dead.

They inherit your junk, along with all your money and assets.

Which means your present self owes a fiduciary duty to your future self now to plan for when you are gone for good.

Because if not you, then who?

1. How many people make wills?

There are no reliable statistics available, but a good bet will be that most people under 65 in Singapore do not have wills written and ready to be executed.

An idea of the prevalence of will-making: In the United States, an estimated 44 per cent of people have made their wills, according to a 2016 Gallup poll.

2. Why do people make wills early?

People make wills early not because they are planning to die, but taking stock of life.

It is a private exercise in accounting for what you have.

A common occurrence: People make wills only after they have a brush with a devastating illness or death.

This should not be a problem if you are still clear-headed afterwards.

But if you are already incapacitated in some way, it will be too late, given that you cannot make a will in such a state.

The challenge is, therefore, simple: If you can commit to a document what proportion of your inheritance you want to pass on to the people that matter, you are clear-headed enough.

Writing a will is tying up a loose end and setting your priorities.

This is the sort of luxury that being healthy brings.

3. How long does it take to write a will?

Estate planning can be easy or difficult.

For most, it is relatively straightforward because if you are middle-class, asset-rich and cash-strapped, the only problem you have with money is the hope you can have more.

If you have a long runway, say, another 40 years to live on average, revisiting your will is inevitable but it should get easier each time.

If you have a lot more money and assets, the aftermath of your demise will probably play out less cleanly.

You can start writing a will anytime, as long as you keep tabs on your finances, assets and debts.

The upside or downside, depending on how you look at it: You become acutely aware of your own net worth.

4. What did I learn from writing my will?

In the process of writing my will, I learnt a few things other people do with their wills.

You should revisit your will every five years to tweak it due to new relationships or termination of old ones.

For most people, whose lives are stable, there shouldn't be too many changes -- unless you remarry or disown children.

But you might have to revisit your will with greater regularity if you are someone with turbulent relationships or if you experience intense fluctuations with your net worth.

This is highly possible if you have no HDB flat or private property to your name, and your wealth is locked up in stocks, fixed income bonds, and cryptocurrency, and any other business investments.

Lastly, wills help keep wealth within the family.

5. What are some misconceptions about writing a will?

Writing a will is not about planning for death.

It is, in fact, one of the most conservative things to do.

Long-term planning and second-guessing your future self is a sign of prudence and a robust approach to control risks for others who outlive you.

Someone in their mid- to late-30s might realistically have accumulated enough money in their Central Provident Fund (CPF) to pass it on as a tidy inheritance to make a downpayment for a two-bedroom executive condominium.

Or at least a nice car.

Of course, death is always a taboo topic.

But it doesn't mean that just because you broach it you are going to die next.

Just that when you die, you can safely assume some people will be distraught because you are dead.

So, what you are doing with your will is to save them the emotional strife of having to sort out your finances and other inheritance in that state.

Will-making is a private enterprise.

And your labour of love.

6. What is the worst thing about writing a will now?

The need to pay for the service of writing a will not knowing when it will even be needed is the worst feeling.

It’s the truth.

Writing a will is not the most satisfying purchase because it doesn’t work until you die.

In Singapore, it can cost between S$99 and S$500 or more to write a will.

More complex wills can go up to a few thousand dollars -- or more.

That's the only major reason people put it off.

But people are already committing to other aspects when they are alive that show they are in charge even in death.

One prime example: Betting against your own life by taking out a life policy with monthly premiums where the eventual payout is made to others only when your death certificate is issued.

However, if you can spend S$1,000 on a new phone, S$25 on a taxi ride, and S$18 on brunch, you can afford to write a will.

Free will-writing offer, plus free S$5 GrabFood credits

If you want to give writing your own will a shot without forking out any money, you can try the service provided by MoneyOwl, which is free and can be done completely online.

During the promotion period extended till Nov. 20, 2020, MoneyOwl is even giving S$5 GrabFood credit for every will written and completed.

However, this is only for the first 1,500 completed wills written by new MoneyOwl sign-ups only.

The GrabFood credits will be disbursed at the end of the campaign period.

Will writers can also appoint their own executor and trustee to manage their assets and execute their will.

More details here.

This article was sponsored by MoneyOwl so we can set aside some money in our wills.