Real estate planning in Singapore is one of the many things that you need to know and understand when investing in real estate in Singapore to make sure that your property portfolio will be sustainable for years to come. This article provides a comprehensive guide on some real estate planning tools you can use to plan your investment decisions:
1. Wills and testamentary trusts:
Wills are essential documents that help people deal with their assets after they die. They also provide clear instructions on how people’s assets should be distributed after death and who should inherit them. This includes details such as what types of shares or properties people may own and where these assets should go once someone dies.
2. Central Provident Fund (CPF) nomination:
The CPF is an insurance policy made by the government-run Central Provident Fund, allowing members to set aside money into a retirement fund upon reaching certain age milestones. It is managed with investments from the government’s reserves. The funds invested through this scheme cannot be withdrawn before the member reaches 55 years old.
3. Manner of holding of immovable property:
There are two ways in which immovable properties can be held individually or jointly as tenants in common. First, if an owner has immovable properties under the individual ownership structure, there are no restrictions on transferring rights over the properties among beneficiaries. As long as all requirements relating to title deeds are fulfilled, family members can share them.
4. Life insurance policies:
Life insurance policies are meant to cover life risks and liabilities. For example, a person can obtain monetary benefit upon death through life insurance plans. Different types of life insurance policies include term insurance policies and endowment policies. Other types of life contracts have different premiums and terms depending on the benefits and features provided by the insurer.
5. Lasting Power of Attorney:
LPA is a legal document executed by the principal to appoint another party as her representative to act on her behalf in case she becomes incapacitated due to any cause. In simple words, LPA acts like a power of attorney but with a more limited scope than a general power of attorney. There are different kinds of lasting powers of attorney available in Singapore, including durable and non-durable Powers of Attorney.
6. Advance Medical Directive:
This is a legal document issued by government agencies to specify how medical treatments and care will be given to patients if they cannot decide about their health care. This directive would state the type of treatment required and the physicians authorized to provide remedies.
7. Inter Vivos trusts:
An Inter Vivos Trust is a transaction initiated during a person’s lifetime for settling debts, paying off education loans, and so on. These trusts are governed by trust law and offer many advantages to those involved in setting them up. At times, inter vivos trusts are known as “testamentary trusts.”
8. Distribution of estates owned by Muslims in Singapore:
If the deceased owns at least one piece of real estate, then the laws applicable are based on Islamic Personal Law (IPL). According to IPL, only Muslim heirs are entitled to inherit these properties. However, according to the Civil Law System of Singapore, both Muslims and Hindus can own real estate jointly. The Court of Appeal determines the rules governing the distribution of assets under civil law.
If you want to know more about the Real Estate space in Singapore, you can check the website for more insightful information; several tools and insights can benefit you there. You can also reach out to me at 94508732; I’m always ready to serve.