Many years ago, when I was still working in the banking industry and very much a greenhorn in the field of Estate Planning, I had asked a friend whether he had given any thought to having his Will written.
No, he has not, he told me.
So why not get one written? It would make life so much simpler for your family if you are no longer there to guide them.
And I went on to explain that according to the law, the Distribution Act would divide his estate in set, prescribed percentages: his wife would get so much, his daughter would get this much and his aged mum would receive that much. Is that what he wanted?
Oh, I’m quite comfortable with that. I don’t mind if my mother were to get something from me if I were gone, and I’m sure my family will not mind too.
That’s family piety for you, making sure that not only would his wife and daughter get the bulk of his estate, but his mother would also be taken care of.
So it set me thinking … is there no other way to convince my friend that that was not the right thing to do?
But of course, there is! There are many other ways. I will not be delving into all of them here but if you just leave it to the Distribution Act to divide your estate, you may find that your estate may eventually end up in the wrong hands of people who should not benefit from you.
For example, what you give to your parents will be theirs to give away eventually. When you pass on and they pass on later without Wills of their own, their share of your estate does not automatically revert back to your spouse or children. Their share will go to their other surviving children — meaning, your brothers and sisters.
You can just imagine the irony. Fruits of your hard-earned money eventually ending up with your brothers and sisters because you had faith that the Distribution Act will make the right decision for you.
Needless to say, this simple explanation was enough to change my friend’s mind.