Legacy Planning: Going Beyond Your Financial Assets

An article first published on Providend website here:
https://providend.com/legacy-planning-going-beyond-your-financial-assets/

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In the previous article, we touched on estate planning, which focuses on distributing your financial assets after death. In this article, we go beyond your financial assets to look at legacy planning. Both are dealing with what you leave behind after your passing, but there are key differences between them: 

• Scope:
  Estate planning primarily focuses on the distribution of your financial assets, whereas legacy planning encompasses a broader perspective, including passing down your values, principles, and non-financial matters such as family traditions, stories, and personal legacies.
  
• Objectives:
  The primary objective of estate planning is to facilitate the efficient transfer of wealth to your beneficiaries, whereas legacy planning aims to preserve your family’s values, traditions, and cultural heritage, and passing down your wisdom, ethics, and life experiences in addition to wealth transfer.
  
• Components:
  Estate planning typically involves components such as CPF, insurance, wills, trusts, plus stakeholders’ designations (nominees, beneficiaries, executors, trustees, protectors, etc.) in those components, whereas legacy planning often includes a more comprehensive approach, and may involve documenting family histories, writing letters to share personal values, recording personal messages in audio/video formats, and perhaps establishing charitable giving strategies to support causes important to you.
  
• Communication:
  Family communication in estate planning primarily revolves around financial matters and the distribution of assets, whereas legacy planning encourages open and meaningful communication about your values, principles, and non-financial matters within the family.
  
• Impact:
  Estate planning has a more immediate impact on the transfer of wealth and assets to the next generation upon death, whereas legacy planning can have a long-term impact by ensuring that your family’s values, traditions, and non-financial legacies are carried forward for generations.

Why Is Legacy Planning Important?

The importance of legacy planning is a personal and individual matter, varying greatly from one person to another. It is a deeply reflective process that centres on what matters most to you and how you wish to be remembered. It goes beyond the usual financial considerations of providing for your loved ones and acknowledges that your legacy is not solely defined by your material possessions, but by the imprint you leave on the hearts and minds of your loved ones. 

Some key reasons why legacy planning is important are:

• Preserving Family Values and Traditions:
  Legacy planning allows you to pass down your family’s values, traditions, and cultural heritage to future generations. It ensures that your family’s identity and shared history are preserved and celebrated.
  
• Fostering Family Unity:
  By engaging in open and meaningful conversations about your values and principles, legacy planning can strengthen family bonds and promote unity. It provides a platform for family members to connect and understand each other better.
  
• Transmitting Wisdom and Life Lessons:
  Legacy planning provides an opportunity to share your life experiences, wisdom, and life lessons with your loved ones. These insights can be invaluable for guiding younger generations and helping them make informed decisions.
  
• Providing Clarity and Guidance:
  A well-crafted legacy plan can offer clarity and guidance to your beneficiaries. It can outline your wishes for the future, including your expectations regarding wealth, education, philanthropy, and other matters.
  
• Minimizing Family Conflicts:
  Clear and documented legacy plan can help reduce the potential for disputes and conflicts among family members after your passing. When everyone understands your intentions and values, there is less room for misunderstandings and disagreements.
  
• Creating a Lasting Legacy:
  Beyond financial wealth, legacy planning helps you create a lasting and meaningful legacy that extends beyond your lifetime. It ensures that your family’s legacy continues for generations to come.
  
• Personal Fulfilment:
  Legacy planning can be personally fulfilling, as it allows you to reflect on your life, values, and aspirations. It gives you the opportunity to make a positive and lasting contribution to your family and society.

Some Topics for Consideration in Legacy Planning

While there are structured legal documents and planning processes in later-life planning and estate planning, there is no universally standardized document or process for some non-financial matters in legacy planning. Such non-financial matters are highly personalized and may include a wide range of considerations. We can only suggest some topics for your consideration in legacy planning.

Funeral Arrangement

When someone passes away, it is usually an overwhelming and emotional time for the family. Planning ahead and sharing your funeral wishes in advance can make a difference in such a time. A few things to consider in funeral arrangement: 

• Choose someone to handle your funeral affairs. 
• Choose a funeral service provider. 
• Decide on the type of funeral service (Buddhist, Christian, Muslim, Hindu, non-religious). 
• Decide how the remains will be handled (burial, cremation, store ashes in a crematorium or at home, or scattering of ashes at sea or on land). 
• Choose a location for the funeral wake (funeral parlour, church, HDB void deck, mosque). 

For more details in funeral arrangement, you may refer to My Legacy website here:
https://mylegacy.life.gov.sg/when-death-happens/arrange-the-funeral/

Family Values

Family values are the guiding principles and beliefs that shape the character, behaviour, and identity of a family unit. They can serve as a moral compass, influencing decision-making, relationships, and the overall culture within the family. In the context of legacy planning, documenting and passing down family values is a significant and deeply personal aspect of ensuring that your family’s identity and principles are preserved for generations to come. 

Family values can encompass a wide range of ideals and principles, and they often reflect the unique experiences and traditions of a family. Some examples of common family values are faith and spirituality, love and mutual support, respect and empathy, integrity and honesty, lifelong learning, hard work and perseverance, generosity and giving back. 

To document family values in your legacy plan, consider creating a written statement or letter that outlines these principles. You may share personal anecdotes and stories that illustrate the importance of each value in your family’s history and encourage discussions among family members about how these values influenced their lives and decisions.

Special Needs

In the previous article on estate planning, we talked about one of the reasons for trust set up is to take care of beneficiaries with special needs. One such trust company specifically set up to provide affordable trust services for persons with special needs is the Special Needs Trust Company (SNTC)[1]. SNTC is a non-profit trust company set up in 2008 with the support of the Ministry of Social and Family Development (MSF)[2].

To set up an SNTC Trust for the beneficiaries with special needs, an initial $5,000 deposit is required. Once the trust account has been set up, you can choose to top up the trust account anytime via cash savings, CPF nomination, insurance nominations, and/or will. 

The specific CPF nomination for special needs is the Special Needs Savings Scheme (SNSS)[3], developed by MSF in partnership with the Central Provident Fund (CPF)[4]. It enables you to nominate your children with special needs to receive a pre-determined monthly payout instead of a lumpsum distribution upon your demise. It is intended to provide long term care for them.

Lifetime Gifting

Lifetime gifting refers to the practice of giving gifts or transferring assets to individuals or entities during your lifetime, as opposed to leaving them as part of your estate to be distributed after your passing. This gifting strategy can be an effective way to manage your wealth and reduce the overall value of your estate, potentially minimizing estate taxes. 

While Singapore does not have gift tax, there are stamp duty implications on a conveyance or transfer of Singapore real estate or stocks and shares. Despite the cost, it is worthwhile to consider lifetime gifting for various reasons:

• Wealth Transfer:
  Lifetime gifting allows you to provide financial support to your loved ones when it is needed most. For example, you might help your children to pay for downpayment in buying their house.
  
• Asset Protection:
  You may transfer your assets to a trust and place them beyond the reach of creditors while still benefiting from the income or use of those assets.
  
• Probate Avoidance:
  Assets transferred through lifetime gifting can bypass the lengthy probate process, expediting your loved ones’ access to those assets.
  
• Family Harmony:
  Lifetime gifting can help address financial inequalities among your loved ones, potentially reducing disputes and conflicts among family members after your passing.
  
• Charitable Causes:
  Lifetime gifting allows you to support charitable organizations and causes you care about. Singapore offers tax incentives for charitable donations, making it financially advantageous to give to charity. 

Investment Mandate

You might have taken many years to learn, practice, finetune and eventually establish your investment approach, and you probably wish to impart your knowledge to your loved ones who would take over your portfolios in your legacy planning. In this case, you may consider writing an investment mandate, which is a document or set of guidelines that describes your investment philosophy and strategy. 

If you don’t have anyone savvy enough to take over your portfolios, you may consider setting up a trust to help you manage your investment according to your investment mandate. You would have the flexibility to put in place a distribution plan from the trust assets to your beneficiaries.

Business Succession

Business succession is a critical area to consider for business owners in legacy planning. You want to ensure not only a smooth transition of your business to the next generation, but also its continued success and stability under the new leadership. 

The key to business succession planning would be the selection of successor. If you plan to pass the business to family members, you need to consider their interests, skills, and willingness to take on leadership roles. This involves identifying potential successors within the family, grooming them through adequate education, training, mentorship, and practical experience.

Conclusion

Beyond financial assets, your legacy encompasses the stories you share, the knowledge you impart, and the wisdom you accumulate over a lifetime. Your legacy is found in the relationships you nurture, the memories you create, and the causes you champion. 

Legacy planning is about crafting a narrative of your life with values, purpose, and love that continues to resonate through generations. It is a testament to the idea that we leave behind not just what we own, but also who we are and the positive change we bring to our family. It truly goes beyond your financial assets. 

For a case study involving later-life planning, estate planning and legacy planning, check out:
https://providend.com/life-decisions-first-before-legacy-decisions/

– Footnotes –

[1] Special Needs Trust Company: https://www.sntc.org.sg/about-sntc

[2] Ministry of Social and Family Development: https://www.msf.gov.sg/

[3] Special Needs Savings Scheme: https://www.cpf.gov.sg/member/account-services/providing-for-your-loved-ones/making-a-cpf-nomination/special-needs-savings-scheme

[4] Central Provident Fund: https://www.cpf.gov.sg/

Estate Planning: Distributing Your Financial Assets After Death

An article first published on Providend website here:
https://providend.com/estate-planning-distributing-your-financial-assets-after-death/

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In this article, we focus on estate planning, which is the process of strategically managing and distributing your wealth and assets to future generations after death. It involves creating a comprehensive plan that ensures the smooth transition of assets and values, while minimizing estate complications and conflicts among beneficiaries.

Most people would think of Wills when we mention estate planning, but it is a lot more than just Wills. There are other important areas to consider, such as Jointly Owned Asset, CPF Nomination, Insurance Nomination and Trust Set Up. We will cover all these areas in this article.

Why is Estate Planning Important?

We are no longer around to make or amend decisions after death, hence the greater need for estate planning while you are alive to ensure that your assets are distributed according to your wishes after your passing.

Without an estate plan, your assets will be distributed according to Intestate Succession Act[1] or Muslim Inheritance Law[2] (known as the Faraidh), which might not reflect what you wish for your estate distribution. The entire probate process may take up to six months or more, with increased hassle, stress and cost more for your family members.

Some practical questions to ponder before making your estate plan:

• Who do you want to appoint to manage and distribute your estate?
• What are the assets you want to distribute?
• Who do you want to distribute each asset to?
• What percentage of your assets you want to distribute to each of your beneficiaries?
• When do you want to distribute your estate to your beneficiaries?

Wills Writing

Will is a legal document governed by the Wills Act[3] and it outlines how your assets and property should be distributed after death. A few key aspects of a Will are:

• Asset Distribution:
  A Will specifies how your assets should be distributed among their beneficiaries. The assets might include financial accounts, insurance policies, personal belongings, real estate, and investments. You would need to consider which beneficiaries are suitable for inheriting which assets. For example, you would prefer someone who are investment savvy to inherit your investments.
  
• Executor Appointment:
  A Will appoints an executor who is responsible for carrying out the instructions outlined in the Will. The executor manages the estate’s administration, including paying debts, taxes, and distributing assets according to the Will’s provisions. Therefore, you would want to appoint someone you can trust and capable of handling the estate administration.
  
• Guardianship for Minor Children:
  If you have minor children, the Will can designate guardians to care for them when you pass on. Obviously, you want to designate someone who you can trust and who love your minor children to be their guardians.
  
• Will Drafting:
  You can draft the Will yourself through online will-writing services if your distribution wishes are relatively straightforward. However, to ensure validity of your Will, it is best to engage a lawyer or professional Will writer to draft up the Will. You need to sign the Will in the presence of 2 or more witnesses.
  
• Will Storage:
  You can keep your Will in a safe deposit box or with your lawyer. You can upload a digital copy of your Will to My Legacy Vault[4]. Alternatively, you may consider registering your Will with the Wills Registry[5] at Singapore Academy of Law (SAL).

However, not all your assets can be distributed via Will. There are non-estate assets which must be handled by other means, such as Jointly Owned Asset, CPF, Insurance Policies and Trust.

Jointly Owned Asset

In general, the rule of “Right of Survivorship” applies to jointly owned asset, which can be passed to the surviving owner outside the probate process.

For joint bank account, most banks would have right of survivorship clauses in their terms and conditions to facilitate the payout of all the money in the account to the surviving joint account holder, but things might not be straightforward should there be legal dispute from the estate distribution.

For joint property, there are 2 manners of holding, namely joint tenancy and tenancy-in-common. Right of survivorship rule would apply to joint tenancy property, where the property will pass automatically and fully to the surviving tenants. However, right of survivorship rule does not apply to tenancy-in-common property, each tenant owns a distinctive share in the property and the deceased’s interest in the property remains in his own estate, not pass on to the surviving tenants.

To avoid complications, it is generally advisable to spell out how jointly owned assets are distributed in your Will, especially if you intend to deviate from the default right of survivorship rules.

CPF Nomination

A CPF nomination allows you to specify who will receive your CPF savings in cash and the proportion of your savings each nominee will receive when you pass away. It is needed even if you have already made a Will because CPF savings are excluded from your estate and therefore cannot be covered by the Will.

You can make a CPF nomination online at https://www.cpf.gov.sg/member/tools-and-services/forms-e-applications/make-a-cpf-nomination at your own convenience. Alternatively, you may make an appointment and visit any of the CPF Service Centres to make your nomination.

A CPF nomination covers your CPF savings in your Ordinary, Special, MediSave and Retirement Accounts, unused CPF LIFE premiums, and discounted Singtel shares, but not properties bought with your CPF savings, payout from Dependants’ Protection Scheme (DPS), and investments under CPF Investment Scheme (CPFIS). The latter will form part of your estate and you should list them in your Will for distribution.

For more details in making your CPF nomination, you may refer to CPF website here:
https://www.cpf.gov.sg/member/account-services/providing-for-your-loved-ones/making-a-cpf-nomination

Insurance Nomination

Insurance nomination is governed by the Insurance Act[6] and it allows policyholders to nominate beneficiaries to receive the insurance proceeds. With proper insurance nomination, the insurance proceeds do not form part of your estate, which means your nominees can bypass the lengthy probate process and claim the proceeds in shorter time.

There are 2 main types of nominations:

• Revocable Nomination:
  You can make revocable nomination to anyone and revoke it in the future by a new revocable nomination or a Will. It is only applicable to the death benefits and not living benefits. For example, critical illness claims are paid to policyholder.
  
• Trust (Irrevocable) Nomination:
  You can only make trust nomination to spouse and children, and it cannot be revoked without the written consent from all the nominees. It is applicable to both living and death benefits. One major benefit of a trust nomination is the protection of the proceeds against claims from your creditors.

You can make insurance nomination by filling in a Revocable Nomination Form or Trust Nomination Form obtained from your insurance company.

For more details in Insurance Nomination, you may refer to “Your Guide to the Nomination of Insurance Nominees” by the Life Insurance Association (LIA)[7]:
https://www.lia.org.sg/media/2076/nomination-of-insurance-nominees_english_2019.pdf

Trust Set Up

Trust is a legal arrangement governed by the Trustees Act[8] in which you (known as the Settlor) appoint a Trustee to administer and manage your assets for the benefit of the Beneficiaries. You may also appoint a Protector to supervise the actions of the Trustee and to ensure that the Trustee acts in accordance with your intentions.

Trust is optional for estate planning. You may consider setting up a Trust instead of a Will or in combination with a Will for various reasons:

• Probate Avoidance:
  A Trust does not pass through probate, which is a legal process that involves the validation of a Will and the distribution of assets under court supervision. Assets held in a Trust can pass directly to the beneficiaries outside of probate.
  
• Confidentiality:
  When a Will goes through Probate, it becomes a public document, and anyone can access it to see how your assets are distributed. On the other hand, a Trust are typically private arrangements, and the details of asset distribution remain confidential.
  
• Flexible Distribution:
  A Trust can be structured to provide a high degree of control and flexibility. You can specify how and when beneficiaries receive distributions under what conditions or restrictions.
  
• Asset Management:
  If you have complex assets, such as multiple properties, business interests, or investments, a Trust can include specific instructions for managing and distributing those assets that may be more detailed than what a Will can provide.
  
• Special Needs:
  If you have beneficiaries with special needs, such as minor children, individuals with disabilities, or spendthrift tendencies, a Trust can be tailored to address those needs by providing for their financial well-being while ensuring that assets are managed responsibly.

Practical Considerations

Start Early While Still Able

It is beneficial to start estate planning early, especially when you have assets to protect and loved ones to provide for. Some key milestones and life events that often trigger the need for estate planning are:

• Marriage:
  When you get married, you would want to create or update your estate plan to ensure that your spouse and loved ones like parents and siblings are provided for.
  
• Children:
  Once you have children, it is crucial to establish guardianship provisions in your estate plan.
  
• Assets Acquisition:
  As you accumulate assets, such as a home, savings accounts, investments, or a business, you should consider how these assets will be managed and distributed in the future.
  
• Life Changes:
  Any significant life changes, such as divorce, remarriage, or death of loved ones, can warrant updates to your estate plan.
  
• Retirement:
  As you plan for retirement, consider how your assets and income sources will sustain you during retirement and what will happen to your assets when you pass on.

Getting Professional Help

There are various professionals and services you can engage for estate planning:

• Wealth/Financial Advisers:
  Wealth/Financial advisers can help you assess your financial situation and develop a comprehensive estate plan that takes into account your investments, insurance policies, retirement accounts, and other financial assets.
  
• Estate Planning Lawyers:
  Estate planning attorneys specialise in creating legally sound estate plans that meet your specific needs and comply with Singapore laws.
  
• Private Trust Companies:
  Private trust companies can act as a trustee to your Trust and manage your assets according to your instructions.
  
• Insurance Agents:
  Insurance agents can help you select appropriate policies and coverage for your protection needs. Life insurance can be used for instant estate creation. 

At Providend, our Client Adviser would work with you and engage a network of lawyers and private trust companies to coordinate and execute a comprehensive estate solution for you.

Conclusion

Estate planning is another crucial aspect of life planning. The primary objective of estate planning is to ensure that your assets are managed, preserved, and distributed according to your wishes after your passing. Ultimately, we want to ensure that our loved ones are provided for financially with proper estate planning.

– Footnotes –

[1] Intestate Succession Act: https://sso.agc.gov.sg/Act/ISA1967

[2] Muslim Inheritance Law: https://www.syariahcourt.gov.sg/Inheritance/Overview

[3] Wills Act: https://sso.agc.gov.sg/Act/WA1838

[4] My Legacy Vault: https://mylegacy.life.gov.sg/vault/

[5] SAL Wills Registry: https://wills.sal.sg/

[6] Insurance Act: https://sso.agc.gov.sg/Act/IA1966

[7] LIA: https://www.lia.org.sg/

[8] Trustees Act: https://sso.agc.gov.sg/Act/TA1967

Later-Life Planning: Living Your Later Life with Dignity

An article first published on Providend website here:
https://providend.com/later-life-planning-living-your-later-life-with-dignity/

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Later-Life Planning, commonly known as End-of-Life Planning, is the process of making important decisions and arrangements for your future medical care, financial matters, and personal preferences as you approach the later stages of your life or if you become unable to make decisions due to terminal illness or mental incapacity. It involves thoughtful consideration, communication, and documentation of your wishes to ensure that they are respected and honoured during the final stages of life.

In 2020, the Ministry of Health (MOH) and Public Service Division (PSD) set up the My Legacy portal[1] to serve as a one-stop resource to provide information on Later-Life Planning and Legacy & Estate Planning. It also provides a vault to securely store your legal, healthcare and estate documents, and share them only with the people you trust.

Agency for Integrated Care (AIC)[2] has a nicely done infographic[3] that shows you the tools for Later-Life Planning and Estate Planning, and when you should apply and activate these tools at different stages of your caregiving journey:

In this article, we focus on the often-neglected Later-Life Planning in Singapore context.

Why is Later-Life Planning Important?

In the later stage of our life, we may encounter a medical crisis which impairs our own capacity to make decisions. In such cases, we need our loved ones to participate in decisions related to taking care of our health, managing our personal welfare, property and affairs, and deciding whether to carry out extraordinary life-sustaining treatment when we become terminally ill and unconscious.

Planning ahead can help you document your wishes on receiving the care you want and make things easier for your loved ones in deciding how to care and manage for you. It involves thinking and talking about:

• How would you want to be cared for at the later stage of your life?
• Who can make decisions for you when you lose mental capacity?
• How would you want your assets to be managed when you are mentally incapacitated?
• Do you want extraordinary life-sustaining treatment to prolong your life?

Later-Life Planning Components           

The components for Later-Life Planning in Singapore are Advance Care Planning (ACP) [4], Lasting Power of Attorney (LPA)[5], and Advance Medical Directive (AMD)[6].

Advance Care Planning (ACP)

ACP is a planning process, not a legal document. It lets you communicate what you want for your own health care and guide your loved ones in making important care decisions for you when you encounter a medical crisis which impairs your capacity to make decisions.

Some examples of care preferences would be:

• Comfort-focused treatment, which aims to provide you with a reasonable quality of life, or full treatment, which pulls out all the stops to keep you alive.
• Location of care in nursing home, hospital, hospice facility, or at home.
• Do-Not-Resuscitate (DNR) Order, where you indicate that you do not want resuscitation attempts in the event of cardiac arrest.

Steps to Draft Your ACP

1. Reflect on what you want:
   Think about the quality of life you want, and the medical treatment you are comfortable with. To explore and share your care preferences, you may use the ACP Workbook here: https://www.aic.sg/resources/Documents/Brochures/ACP Publications/Workbook/ACP Workbook-EN.pdf
2. Choose your Nominated Healthcare Spokesperson (NHS):
   Your Nominated Healthcare Spokesperson is someone you can trust to convey your care preferences, should you no longer be able to do so. This someone is usually a family member or close friend.
3. Record your choices:
   Find a certified ACP facilitator to discuss and submit your ACP to the National Electronic Healthcare Record (NEHR)[7]. You may find an ACP facilitator here: https://mylegacy.life.gov.sg/find-a-service/find-advance-care-plan-facilitator/.
4. Review your ACP:
   ACP is a reflection of you. As your life changes, you may make new decisions. When you do, update your ACP and loved ones.

For more details in making your ACP, you may refer to My Legacy website here:
https://mylegacy.life.gov.sg/end-of-life-planning/make-an-advance-care-plan/

Some Consequences if You Don’t Have ACP

• Healthcare providers may be uncertain about the types of treatment you would want or refuse in critical medical situations and can lead to delays in treatment.
• Medical professionals may default to providing aggressive treatments to prolong life, even if those interventions are not aligned with your preferences.
• Family members may have differing opinions about the appropriate medical care for you and can lead to disagreements, conflicts, and added stress for your loved ones.

Lasting Power of Attorney (LPA)

LPA is a legal document governed by the Mental Capacity Act (MCA)[8] passed in 2008. It allows you (the ‘Donor’) to appoint one or more trusted people (the ‘Donee’) to help you make decisions on your behalf when you lose mental capacity.

A mental incapacity could happen due to advanced dementia, a mental health illness, a coma, and unconsciousness caused by illness or medical treatment. Once your loss of mental capacity is certified by a registered medical practitioner, your Donee(s) can use the LPA to manage your personal welfare and/or property & affairs.

Steps to Draft Your LPA

1. Choose your Donees:
   You can appoint 1 or more Donees to manage your personal welfare and/or property & affairs. You can also appoint replacement Donees as a standby to take over all or some of the authority that the original Donee has been given when he/she is no longer able to carry out the responsibilities.
2. Complete your LPA Form 1 or Form 2:
   • With LPA Form 1, you may appoint 1 or 2 Donees, appoint 1 replacement Donee, and grant Donee(s) general powers with basic restrictions. You can draft your LPA Form 1 through the Office of Public Guardian Online (OPGO) portal:
     https://opg-eservice.msf.gov.sg/OPGO/Login.aspx
   • However, if you want to appoint more than 2 Donees, more than 1 replacement Donees, or grant Donee(s) customized powers, you have to engage a lawyer to draft your LPA Form 2.
3. Certify your LPA:
   Once all your Donees have accepted their appointments, you will need to certify your LPA by visiting a Certificate Issuer (CI), who can be an Accredited Medical Practitioner, a Practising Lawyer, and/or a Registered Psychiatrist. You may find a CI here:
   https://opg-eservice.msf.gov.sg/LPA/CIMapService.aspx
4. Register your LPA:
   Your LPA will only be valid after it has been registered with Office of Public Guardian (OPG)[9].

For more details in making your LPA, you may refer to My Legacy website here:
https://mylegacy.life.gov.sg/end-of-life-planing/make-a-lasting-power-of-attorney/

What Happens if You Don’t Have LPA?

If you lose your mental capacity without an LPA, your loved ones must apply to the Family Courts to be appointed as your deputy before they are authorized to make decisions and act on your behalf. The deputyship application process can be time-consuming, costly, and potentially stressful for your loved ones.

While the court process is underway, there may be delays in making important decisions about your medical treatment, personal welfare, and financial matters. These delays can be problematic, especially for urgent decisions.

The deputyship application must state the care and financial plan for you, the deputy powers to apply for and which powers various organisations need to let you perform transactions as your deputy. It is a legally demanding process, likely involve lawyers, and the outcome is subject to the Courts’ approval.

For more details in Deputyship Application, you may refer to the SG Courts website here:
https://www.judiciary.gov.sg/family/deputyship

Advance Medical Directive (AMD)

AMD is a legal document governed by the Advance Medical Directive Act (AMDA)[10] passed in 1996. It allows you to state whether you want any extraordinary life-sustaining treatment to prolong your life when you are suffering from an incurable terminal illness and incapable of expressing rational judgement on the treatment.

Some reasons you might opt out of extraordinary life-sustaining treatment:

• Quality of life deteriorate due to severe pain, unnecessary suffering or loss of autonomy
• Avoid financial burden on your families from expensive medical treatment
• Emotional and psychological impact on your loved ones watching you undergo aggressive treatment with little chance of recovery

Steps to Draft Your AMD

1. Obtain an AMD form:
   You can obtain the forms from medical clinics, polyclinics, hospitals, or download the AMD Form 1 online from:
   https://www.moh.gov.sg/docs/librariesprovider5/forms/form1amd(270905).pdf
2. Consult a doctor with a witness:
   The AMD must be made through a doctor, who has the responsibility to ensure that you are not being forced into making the AMD, not mentally disordered, and understand the nature and implications of making the AMD.
3. Return the form to the Registrar of AMD:
   The completed form must be submitted in a sealed envelope by mail or by hand to the Registrar of AMD at MOH, located at College of Medicine Building, 16 College Road, Singapore 169854.

For more details in making your AMD, you may refer to the MOH website here:
https://www.moh.gov.sg/policies-and-legislation/advance-medical-directive

What Happens if You Don’t Have AMD?

If you lose your mental capacity and suffer from an incurable terminal illness without an AMD, your doctor will discuss with your family members and decide on whether to prolong your life by giving or applying extraordinary life-sustaining treatment. This would place emotional burden on them in making difficult decisions on your behalf, especially if they are unsure about your wishes.

There could be disagreements among family members about the best course of medical treatment for you, rendering the decision-making process more difficult to reach a consensus. The absence of clear decisions could lead to delays in receiving necessary medical treatment.

Practical Considerations

Start Early While Still Able

Later-Life Planning is a critical aspect of life that often goes unaddressed until it’s too late. Many would think that accidents or medical mishaps won’t happen to them when they are young. Mental incapacity is usually the furthest concern in their mind. However, we know that such crisis can strike anytime in our life.

Starting Later-Life Planning early is a proactive and prudent step that offers numerous benefits to us and our loved ones. Initiating the planning process well in advance can lead to better outcomes and greater peace of mind for everyone involved. We can ensure our wishes are respected, reduce emotional stress for our loved ones, facilitate honest conversations with family members, avoid hasty decisions in times of crisis, secure legal documents (LPA and AMD) in place, give you time to evaluate various care options, and provide clarity to your loved ones.

Make Use of National Registry Services

Do make use of the following National Registry and Depository Services to register and store your Later-Life Planning documents:

• ACP: National Electronic Health Record (NEHR), ACP facilitator will submit for you
• LPA: Office of Public Guardian (OPG)
• AMD: Registry of Advance Medical Directives, need to submit at MOH office
• My Legacy Vault: https://mylegacy.life.gov.sg/vault/

The My Legacy Vault is particularly useful to consolidate all your documents in one secure storage, and you can share them with your trusted loved ones.

Engage Professional Help

As you can tell from the steps in making ACP, LPA and AMD, the process involves a fair amount of cultural, medical, legal, and practical considerations in preparing these documents. Therefore, it is beneficial to engage professionals to help you in preparing these tools.

Here are some reasons for getting professional help:

• Complex Legal Framework:
  There are specific legal requirements and regulations governing matters such as LPA and AMD. Legal professionals can help you in navigating these legal complexities and ensuring that your documents are valid and compliant.
• Cultural and Religious Considerations:
  Singapore is a diverse society with a range of cultural and religious practices. You will need professionals who understand these nuances in creating a later-life plan that respects your cultural and religious beliefs, ensuring that your wishes are upheld while adhering to cultural norms.
• Minimizing Family Conflict:
  In a culture that value family harmony, professional guidance can help prevent potential conflicts among family members. Professionals can provide an objective perspective and guide discussions to ensure that everyone is on the same page regarding your preferences.
• Safeguarding Assets and Finances:
  Engaging financial planning professionals ensure that your financial assets are properly managed and distributed according to your wishes.
• Navigating Healthcare Decisions:
  Medical professionals can help you understand the implications of healthcare and medical choices and guide you and your caregivers in making well-informed medical decisions.

Conclusion

Later-Life Planning is a crucial aspect of Life Planning that ensures our desires and preferences are respected during times of vulnerability. In Singapore context, we can tap into various organizations that provide resources in making later-life plan with ACP, LPA, and AMD. By embracing Later-Life Planning, we can find peace of mind, relieve our loved ones of burdensome decisions, and live our later life stage with dignity.

– Footnotes –

[1] My Legacy: https://mylegacy.life.gov.sg/

[2] AIC: https://www.aic.sg/

[3] Infographic: https://www.aic.sg/caregiving/PublishingImages/Content%20Images/What-You-Should-Apply.jpg

[4] ACP: https://www.aic.sg/care-services/all-about-acp

[5] LPA: https://www.msf.gov.sg/what-we-do/opg/lasting-power-of-attorney/what-is-a-lasting-power-of-attorney

[6] AMD: https://www.moh.gov.sg/policies-and-legislation/advance-medical-directive

[7] NEHR: https://support.healthhub.sg/hc/en-us/articles/15823581714073-What-is-National-Electronic-Health-Record-NEHR-

[8] MCA: https://sso.agc.gov.sg/Act/MCA2008

[9] OPG: https://opg-eservice.msf.gov.sg/

[10] AMDA: https://sso.agc.gov.sg/Act/AMDA1996