Question: My father died recently. My mother was shocked that she needs to pay $12,600 in tax to have my father’s property transfer to herself. I thought estate duty was already abolished. Why my mother need to pay so much in estate duty?

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Question: “I am the only child of my mother and my father is no longer with us. My mother is currently bedridden. I am married with no children. I intend to write a will to give all my property to my mother and my wife in equal shares. However, in the event that my mother shall predecease my wife, I would like the remaining of my given shares to be given to my wife. How shall I articulate the will? - Max”

(The above question was posted by someone on this website HERE but it did not receive a proper reply because it was thought that the question is a legal question. Actually, it is a financial planning question. Here is my two cents' worth reply.)

Answer:

Question: "I have a spouse and an age old mother (currently staying with my young brother, who is not married), with no children. My spouse is a PR and a housewife, with not much saving. I have my own HDB flat, under single owner scheme, when I dies, my wife have to sell away the flat, according to HDB rule. I still cannot decide the percentage of giving to both of them. As I do not have children, if i give high percentage to my wife, it will be unfair to my mother, as she brought us up in hardship. If I give high percentage to my mother, when she die one day, my asset will go to my brothers. So I am still in a confuse stage to calculate out the percentage."

Question: “I am not writing my Will because the default distribution under Intestate Succession Act serves my needs. Moreover, I hold my assets as joint account with my wife.” - A married individual with young children.

Answer:

Question: “When I obtain the CFP or ChFC designation, will I be able to provide professional financial planning service?”

Answer: In my view, the CFP and ChFC is like a basic degree in financial planning. But like all basic degree, the individual is still greenhorn in the subject matter. It is like a person who graduates as degree in IT, but is he now a professional IT personnel? Of course not. It depends on the experience. Many advisers have CFP and ChFC but they do not practice what they learn or rather they do not have a chance to practice what they learn. As a result, they remained greenhorn and after a while of not practicing, their financial planning knowledge and skills become like that of other ‘normal’ advisers. Put it this way, if you get your driving license but do not practice it for 10 years, do you think you know how to drive? You will be the same as a non-license holder.

Question: “I am not writing my Will because it may be subject to many revisions and hence incur costs.”

Answer:

Question: “I am sick and tired of doing insurance sales. My manager only teaches me soft skills in selling. I feel like quitting the industry altogether.”

Answer: There is one thing which financial advisers like you differ from all other occupations is the ability to persuade customers to buy your products. The financial industry has trained up some very good sales people who have acquired very advanced selling skills. Top producers are able to close the deal in every case because of the art of persuasion. They have the skills in overcoming clients’ objections. They can turn objections to become opportunities. Unfortunately such advanced skill in persuasion can be very harmful to clients if the products sold did not meet the needs of these clients.

Question: “I am not writing my Will because of lack of knowledge”

Answer:

There is no need to be knowledgeable to have a Will. In fact, that burden of knowledge should be born by professional estate planners.

Question: “I am not writing my Will because I cannot afford the fee. It may be subject to many revisions and hence incur costs."

Answer:

Why is it that all household have a television set regardless of how poor they are?

Why is it that people has no hesitation to spent money on traveling?

Question: "I am not writing my Will because my asset and cash are all in joint account/name with my wife. If anything happen to me, she should not have problem to take over the asset and cash. "

Answer:

Question: "My main obstacle for not wanting to write a Will is this : Will there be maintenance and upkeeing fees involved in making a meaningful will?"