Special Cases

Families with special needs face unique estate planning challenges, emphasising care and financial security for dependents.

Overview
People with special needs are vulnerable people in our society because of the dependence on their caregivers for care and support. While anyone can experience neglect, abuse or aggression, a person with special needs is at greater risk because their ability to respond is limited. Caregivers have two main after-lifetime concerns: a Care Plan on how their dependents will be cared for, and a Financial Plan to ensure adequacy and liquidity for the dependents. Despite the urgent and pressing needs, most families with special needs tend to overlook their estate planning, partly also because most of the attention is allocated to other matters.
Challenges & Pitfalls

Caregivers commonly ask about who will care for their dependent’s day-to-day needs when they are no longer around? Will the next caregiver know the dependent’s preferences, daily routine, medical treatment, allergies and needs etc.? Such concerns are real, and it often leads to a decision paralysis especially when too many details are involved, thus leading to inaction.

When it comes to resources allocation, most caregivers find it challenging to balance the sentiments between their child with special needs and other children. Guilt and resentment are common emotions that come up, and a lack of proper planning can leave behind potential conflicts, tearing up the fragile family ties.

The lack of awareness with policies, initiatives and professional services leads to caregivers having difficulty expecting their other children to look after their children with special needs. In the worst-case scenario, caregivers may force other children to oblige and give up their personal aspiration.

Caregivers are also concerned with their own finances and how to ensure that they can accumulate sufficiently to ensure that their dependent with special needs do not run out of resources in their lifetime.

Applying for deputyship for their dependent with special needs. Before the dependents reach the age of 21, the caregivers are the default guardian to make decisions and the legal representative of the dependents. However, upon attaining 21, caregivers must be appointed deputy to continue being the guardian of the dependents with special needs.

Lastly, most caregivers forget to plan adequately for themselves. It is understandable that the concerns revolve around the dependents with special needs, seeking solutions to ensure that all gaps are closed. However, the caregivers did not pay attention and care to their own arrangement. For instance, caregivers tend to assume that as a healthy individual, they done up LPA form 1 to grant blanket powers to their donee, instead of an LPA form 2 where they could customised the power accordingly. While assumptions are made in this example, and sometimes a form 1 suffice, but nonetheless, it is likely due to lack of information that resulted in a lack of attention paid to the caregivers’ personal planning.

Overview
Often, you might run into the possibility that someone else tasked you to hold their assets in your name or hold them in trust informally. This could be especially so when the lines between the ownership of the assets become ambiguous.

For instance, an elderly mother of three children might designate her eldest son as a joint owner of her savings account, ensuring he has access to her funds if needed for her medical treatments.

You might be a guardian for your siblings’ children as well, holding their monies in Trust for the intended benefit for them for the next couple of years.
Challenges & Pitfalls

Communication Inadequacy
The relevant parties might not be aware of such arrangements, and this might lead to potential conflicts between the intended beneficiaries. In the example of the elderly mother appointing her son as her savings bank account joint owner. Upon her demise, her savings, which are intended for her three kids, goes wholly to her eldest son. Conflicts between siblings might arise due to the lack of communication on the intention of such an arrangement.

Unintended Distribution to Unintended Parties
Without proper guidance, your intended distribution of your wealth and assets might turn out the way you least expect. For example, where you are a guardian for your sibling’s children. When you’re no longer around, your estate might be distributed to your own spouse and children, without any provision for your sibling’s children, which might not align with your intentions.

Estate Liabilities Transference
Putting your assets under someone else’s name or holding assets in Trust for them might come with liabilities as well. For example, holding private property for someone else in a Trust might seem beneficial but you might be the one who pays the monthly mortgage if there is no proper provision from their estate.

Overview
Owning assets overseas has become more prevalent in today’s globalized economic environment. For instance, many young savvy investors engage trading platforms to purchase and sell investment assets across various assets. Investors might own properties overseas as well, some of which involve private agreements with the residents. However, these common situations will bring about significant estate planning issues.
Challenges & Pitfalls

Estate Taxes
Some countries levy estate duty or inheritance tax, which can reduce the value of your assets upon your death. If there isn't enough liquidity, you may be forced to sell assets quickly to raise cash, further diminishing their worth.

Capital Gain Tax
Certain countries impose capital gains tax; if your executor sells assets at a profit to settle your estate, these taxes could be incurred.

Ineffective communication
Without proper documentation, your executor may find it challenging to locate and access your assets. Many times, these properties might remain confidential, and their existence may go unnoticed upon death.

Inadequate asset inventory
Creating a comprehensive asset inventory is difficult when you have assets overseas and could be even more challenging to maintain it. If your assets are scattered or poorly organized all around the world, tracking them down poses a huge challenge when you pass away.

Overview
In every household where cohabiting exists, there are many motivations and reasons for such arrangements. It could be a situation where you are undergoing your divorce proceedings; You might be in a relationship with someone of the same gender or you and your partner may be in love with each other but prefer to avoid the legal aspects of marriage. No matter the reasons why you choose to live together, estate planning is essential if you truly care about one another.
Challenges & Pitfalls

Legal Rights and Intestacy
There is no legal binding between you and your partner. If one partner passes away without a will, the other is entirely excluded from their estate. This might not be the best outcome, especially when the deceased’s property is not inherited by the intended beneficiaries.

Insurance and Beneficiary Claims
A partner has no legal standing as a claimant to any insurance proceeds that the deceased has, unless designated as a beneficiary. Without nominations or Will, the surviving partner is unable to be the proper claimant of the estate and the insurance proceeds.

Financial Liabilities and Obligations
If you and your other cohabitants co-signed a loan or mortgage for the property that you’re living in, you might remain legally responsible for clearing any outstanding debts. Without proper planning, this might possibly add onto a huge financial and emotional burden to you.

Children and Legitimacy
In some case involving children, if the child is deemed illegitimate, their legal rights regarding the estate are limited. The Intestate Succession Act does not recognize illegitimate children, and this might pose a huge problem for them when one partner passes on without a proper plan in place to provide for them.

Access to Estate and Financial Claims
As cohabiting partners might not qualify as the immediate next-of-kin, they are unable to legally settle the deceased’s estate, such as bank accounts, insurance payouts and properties. If a partner passes on without a Will, it can be challenging to obtain permission to act as the estate administrator, as family members have priority.

What We Do

We are committed to offering comprehensive planning and solutions for wealth distribution, wealth succession, and estate administration for both individuals and families.