By Jermaine Koh
If you’ve only got a minute:
- Estate planning is a vital step for ageing parents to ensure their assets are protected and their wishes are carried out clearly.
- A comprehensive estate plan prevents delays, reduces conflict and safeguards family harmony.
- Key documents such as wills, Lasting Power of Attorney (LPA), Advance Medical Directives (AMD), Advance Care Planning (ACP), CPF nominations, insurance nominations and trusts work together to create a complete plan.
When we think about estate planning, we often associate it with the wealthy or the elderly. But it’s something everyone - regardless of income - should have.
Your parents may already need help to manage their doctor’s appointments, medications and financial matters. But what happens when they lose mental capacity and are entirely unable to make decisions? Or if something unexpected occurs - an accident, a medical crisis or an unexpected demise?
Why estate planning is essential – especially for ageing parents
Many elderly Singaporeans assume that estate planning is unnecessary, thinking their children will “naturally” inherit everything. Others avoid the topic altogether - viewing it as morbid or “tempting fate.” However, avoiding the conversation may only complicate matters in future.
As life expectancy increases in Singapore, the risk of age-related illnesses such as dementia and chronic conditions also rises. Without proper legal preparations in place, families may face frozen bank accounts, court applications and prolonged disputes.
Estate planning is about setting out how you want your estate (or your assets) to be managed and transferred. It gives your parents control over what happens to their assets and care, and spares the family from emotional and legal turmoil during already tough times.
By addressing these gaps early, you not only help secure your parents’ legacy - but you also help to preserve harmony within the family.
Key estate planning documents
A complete estate plan doesn’t hinge on just one document but a set of tools that work together to support your parents in life, medical crises and after their passing.
Common estate planning tools in Singapore
Tool | Purpose | Why It Matters |
|---|---|---|
Will | Specifies who gets what and how much of assets after death. Names executor(s) and guardian(s). | Avoids intestacy rules, enables efficient distribution and management of your estate. |
Lasting Power of Attorney (LPA) | Appoints someone to act on your behalf for personal welfare and/or property matters if mental capacity is lost | Allows trusted person to step in without court intervention
|
Advance Medical Directive (AMD) | Documents person’s wishes to refuse extraordinary life-sustaining treatment in the event of terminal illness or unconsciousness
| Ensures medical preferences are honoured; removes burden from family to make a difficult decision |
Advance Care Planning | Encourages conversations and documentation of a person’s broader care preferences – such as treatment goals, values and choice of place of care | Offers clarity and direction to loved ones and doctors when making medical decisions on the person’s behalf |
CPF Nomination | Directs how CPF savings are distributed after death | Avoids savings being distributed according to intestacy laws; speeds up disbursement |
Insurance Nomination | Directs how insurance payouts (e.g., death benefits) should be distributed | Ensures prompt and direct payouts to intended recipients |
Trust | Protects and manages assets for specific needs (e.g., minors, dependents with disabilities) |
Offers structured asset management and can protect beneficiaries from financial mismanagement |
Let’s unpack each in more detail:
Will
This is the cornerstone of most estate plans. It outlines how your parents want their assets distributed and who should manage their estate.
Common pitfalls to avoid:
- Appointing unsuitable executors or trustees
- Using beneficiaries or their spouses as witnesses (which invalidates their entitlement)
- Not including a residuary clause to capture unlisted or future assets
- Not planning for contingencies like a beneficiary predeceasing them
A well-written will avoids these issues and ensures a smooth process. For example, if your dad lists only his HDB flat and a bank account, but later opens a new investment account that isn’t mentioned, it could be distributed under intestacy laws unless a residuary clause is in place:
“I leave the remainder of my estate to my children in equal shares” - can ensure that all assets even those acquired after the will is being written or accidentally omitted are distributed according to his intentions.
Lasting Power of Attorney (LPA)
An LPA allows your parents to legally choose someone they trust to manage their finances and/or personal welfare if they lose mental capacity due to illness, accident or age-related conditions.
Without an LPA, you would need to apply for deputyship via courts – often a long, costly and emotionally draining process.
Encouraging your parents to register for an LPA early (while they are still mentally sound) helps avoid these complications and ensures their care is entrusted to someone they know and trust.
CPF
CPF monies such as those in the Ordinary, Medisave and Special/Retirement Accounts don’t fall under a will. A CPF nomination is needed to ensure those funds go directly to the people your parents choose.
For example, widow Mdm Chua had 3 sons but was estranged from the youngest one. She had wanted to bequeath her CPF savings to her 2 older sons who were more filial to her, leaving nothing to her third son.
Unfortunately, Mdm Chua passed away without making a CPF nomination. According to the Intestate Succession Act, her CPF monies were distributed to all 3 children equally, something she would have not wanted.
Without a valid CPF nomination, the Public Trustee’s Office takes over, applying intestacy rules and charging a fee. Worse still, the final recipients may not be who your parents would have wanted.
Encouraging them to log in to the CPF website and check/update their nominations is a simple but powerful step.
Advance Medical Directive (AMD)
AMD is a legal document stating the wish not to be resuscitated or kept alive by extraordinary means if they are terminally ill.
These documents reflect your parents’ wishes regarding life-sustaining treatment in serious medical situations.
Advance Care Planning (ACP)
Unlike the AMD, which focuses only on life-sustaining treatments, ACP is a broader discussion and formal documentation of healthcare preferences ), including where they want to be cared for. ACP also helps individuals appoint up to 2 Nominated Healthcare Spokespersons (NHS) to speak on their behalf when they can't.
Doing an ACP encourages your parents to reflect on their values, lifestyle goals and care preferences – such as whether they’d prefer to be cared for at home or in a hospital, and whether palliative care is more important than aggressive treatment.
Both AMD and ACP ensure their preferences are respected and relieves loved ones of the burden of making those tough calls without guidance.
Insurance nomination
Life and accident insurance policies can result in significant payouts. If your parents don’t nominate beneficiaries, the proceeds may go to their estate - which means delays and possible disputes.
An updated insurance nomination ensures faster disbursement and avoids unintended outcomes (like payouts going to an ex-spouse):
Mr. Tan named his ex-spouse as his insurance nominee years ago and forgot to update it. When hedied without a will, the payout went to his ex-wife instead of his current wife and child. If he had a later will that indicated another beneficiary for that insurance plan, it could have superseded his initial insurance nomination.
Trust
If your parents have complex financial arrangements or vulnerable dependents, setting up a trust can offer long-term protection. A trust allows for more control over how, when and to whom assets are distributed.
For instance, if they want to provide monthly allowances to a special needs child or hold assets until a grandchild reaches a certain age, a trust can make that happen.
How to talk to your parents about estate planning
I get it - talking to your parents about death, illness and finances can be awkward. But putting it off doesn’t make it go away.
Here’s how to ease into the conversation with empathy:
1. Start the conversation early and gently
Choose a calm, private moment. A casual setting like a family dinner or television time often works best.
“I read something recently about how many families face delays with CPF or bank access when someone falls ill or passes away. I thought it might be good for us to have a plan.”
Bring up the subject in a caring and respectful way and more importantly, frame it as a way to protect the family.
2. Normalise the process
You could refer to friends or articles to show this is a common and wise move:
“I saw DBS had an article about how important it is to get this in place early—it’s not just for the wealthy.”
3. Use real-life examples
Use stories of families who benefited from good planning or faced difficulties due to its absence to highlight the practical benefits without causing alarm.
4. Focus on peace of mind and reassurance
Explain that planning ahead spares the family from unnecessary stress and confusion, especially during challenging times. Let them know you’re there to support, not take over.
5. Offer practical support
Suggest going through the forms together, volunteer to help with paperwork and accompany them to meetings with lawyers or financial advisors.
Sometimes, the paperwork is the most intimidating part.
6. Be patient
If they’re hesitant, don’t push. Revisit the topic gently over time and let them lead when they’re ready.
Final thoughts
Estate planning isn’t about being pessimistic. It’s about taking proactive steps so your parents and your family are better protected when life throws a curveball.
With a proper estate plan in place, it gives everyone a peace of mind. If your parents haven’t started the process yet, today is a good time to begin. A thoughtful conversation now can prevent painful uncertainty later.
It’s not just about legal forms - it’s about love, responsibility and readiness.
