Why estate planning matters
A recent survey finds that only 22% of Singapore residents have a legally drafted will in place, while a substantial 60% have no plans to do so within the next 12 months1. These figures indicate how many individuals delay basic forms of planning—even though the consequences can be profound.
Without a will, asset distribution is governed by the Intestate Succession Act or by Muslim inheritance laws for Muslims—regardless of your personal wishes2. CPF savings require their own nomination process; failure to do so transfers funds to the Public Trustee’s Office for intestate distribution, often accompanied by fees and additional steps3.
Essential tools for estate planning
Estate planning doesn't have to be complex. Each of the following tools serves a different purpose. For most, a combination of these tools will suffice:
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A will specifies how your assets are distributed after death. But it doesn’t cover CPF savings and insurance proceeds with valid nominations.
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A CPF nomination directs who receives your CPF monies and a will cannot override this.
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An insurance nomination determines who receives your policy proceeds, and it allows payout directly to nominees without the need for a court process.
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A lasting Power of Attorney (LPA) appoints someone you trust to make decisions on your behalf if you become incapacitated. LPA operates during your lifetime rather than after death. Only around 19% of Singapore residents have made an LPA as of April 2024, though more than half are considering one1.
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A trust holds and manages assets for beneficiaries such as minors or vulnerable family members with conditions you set.
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A deed legally formalises certain transfers or arrangements, and it’s typically used alongside other tools for property or more complex estates.
For most Singaporeans, the practical combination is a will, CPF and insurance nominations, and an LPA—while trusts and deeds are added only if the situation calls for it.
Life insurance: support when you need it most
Life insurance plays a unique role in estate planning.
With a valid insurance nomination, policy proceeds go directly to beneficiaries, avoiding delays associated with the court process and potential disputes.4 It ensures quicker access to funds, helping beneficiaries manage urgent expenses such as funeral costs, housing or education expenses without waiting for estate distribution.
If no nomination is made, your insurer may pay up to $150,000 to a “Proper Claimant” as defined by the Insurance Act.5 This could be your spouse, children, parents, or your executor.
There are various types of life insurance plans, each serving different needs. Beyond offering a death payout, many life insurance plans offer financial support if you’re unable to work due to a terminal illness or total and permanent disability, ensuring your loved ones are cared for financially.
Practical steps to get started
A recent survey finds that only 22% of Singapore residents have a legally drafted will in place, while a substantial 60% have no plans to do so within the next 12 months1.
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Take inventory of your CPF balances, savings, property, insurance.
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Make nominations to ensure your CPF and insurance have designated beneficiaries.
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Write a will; even a simple one can make a difference.
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Consider an LPA, especially if you have dependants or ageing family.
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Review regularly. Update after major life events—marriage, parenthood, asset changes.
Regardless of where you are in your journey, HSBC Life can help you and your loved ones navigate the many uncertainties of life with a wide range of plans that suit your needs. To find out more, speak to an HSBC Life Financial Planner or visit www.hsbclife.com.sg. | 
