Asked 2w ago
Do I need to make a will for my stocks holdings in the event I passed on?
Likewise bonds, endowment plan
PS: not too sure if this related to the platform here
Without a will, your estate will be distributed in accordance with the Intestate Succession Act. In your case, your spouse will get 50%, while your children will split the remaining 50% equally. It is not an automatic process and an administrator (typically one of the beneficiaries) will have to distribute the proceeds.
However, you should write a will anyway - it gives you more control over which beneficiaries get what, and you get to appoint an executor instead of having your beneficiaries apply to the court for administration. This can be particularly important if you hold property solely in your own name as your property could be split into multiple parts which is not a very favorable situation!
Some things do not form part of the estate and thus would not require a will to be distributed. These include joint accounts (except tenancy in common), insurance policies with nomination, and CPF balances.
Lastly, since you mentioned stock investment, do note that US estate tax is applicable on excess of 60,000 USD of US situs assets. The tax can range from 18% to 40%, and as such you may want to do the necessary planning so as to avoid such a situation - for example, by shifting from US-domiciled ETFs to Ireland or HK-domiciled ETFs. Do consult a tax advisor if you are unsure.
From what I understand, if it is a Joint Account, the investment will belong automatically to the other account holder. However, if it is an individual account, the administrator of your assets should inform the respective place you are holding your investment.
It can be confusing, that is why we should do our legacy planning which may include having but not limited to:
2) CPF nominations
3) Lasting Power of Attorney
I have written a blog about legacy planning. Do check it out for more information.
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