A well-prepared end-of-life experience doesn’t happen by chance; it requires intentional planning across various aspects—financial, legal, psychological, social, medical, and spiritual. This preparation not only eases the individual’s transition but also lightens the burden on loved ones.
In prolonged end-of-life scenarios, such planning becomes even more critical. For instance, if mental incapacitation occurs without clear communication of one’s wishes, loved ones might expend significant resources on treatments with uncertain outcomes. This not only heightens distress in the final days but may also lead to family conflicts and financial challenges.
Rather than waiting for a crisis, experts recommend proactive planning during periods of sound mental presence. This approach can prevent unnecessary expenditure, heartache, and complications for loved ones down the road.
Alfred Chia, CEO of financial advisory firm SingCapital and co-author of “Last Wishes: Financial Planning, Will Planning, and Funeral Planning in Singapore,” emphasizes that procrastination is a common financial mistake. Planning for death, according to him, should be seen as a celebration of life, advising early retirement planning to avoid future financial stress. Calculating the required monthly amount for post-retirement lifestyle and securing the right insurance policy are essential steps.
Chia also highlights the risks of falling victim to financial scams and investing in instruments unsuitable for one’s risk profile. He underscores the importance of managing wealth for the wealthy, emphasizing that early planning can maintain family unity and prevent inheritance disputes.
In essence, preparing for the end of life is a thoughtful process that encompasses various dimensions of life, ensuring a more graceful transition and reducing the challenges faced by loved ones.
Upon the conclusion of life, a multitude of issues arise for loved ones, necessitating proper resolution within the legal framework. While many individuals recognize the importance of wills, other considerations, such as trusts and Lasting Power of Attorney (LPA), also come into play.
A will primarily addresses the distribution of assets after an individual’s demise. In contrast, an LPA serves the purpose of appointing a person or persons, known as the donee, to make decisions regarding “health and wealth” on behalf of the individual before their death.
Doris Chia, a litigation partner at David Lim & Partners, emphasizes the relevance of an LPA for individuals with elderly parents. This legal tool enables access to parents’ bank accounts or assets to cover medical expenses when parents are unable to manage these matters themselves.
It’s crucial to note that the LPA only becomes operational in the event of a loss of mental capacity. Therefore, even if an LPA is executed now, its validity may only come into play years later, according to Ms. Chia. Alternatively, it may not come into effect at all if the individual who appointed the LPA remains mentally healthy.
