7 Risks Your Family Faces Without Estate Planning

February 6, 2025

Estate planning is one of those topics we often shy away from. It can feel uncomfortable—even unsettling—to consider what will happen when we're no longer here. Most of us want to feel sure that our loved ones will be cared for. We also like the things we’ve worked hard for to go to the people who mean the most to us. 

A 2022 survey revealed that 48% of Singaporeans do not have a will, leaving their assets subject to the Intestate Succession Act, which may not align with their wishes.¹ 

In this article, we’ll cover 7 critical reasons to consider estate planning. We hope these insights inspire you to take that first step toward securing your family’s future.

7 Risks Your Family Faces Without Estate Planning

1. Forced Sale of Assets at Low Prices

Consider the stress your family could face if they’re forced to sell your property or assets when the market is not doing well. 

Without a clear estate plan, the Intestate Succession Act determines how your assets are distributed, which may not align with your family’s needs.² If you do not provide instructions on how property or valuable assets should be split, your family may be forced to sell quickly, often at a loss.

Estate planning allows you to ensure your loved ones won’t be forced to make quick, stressful decisions during difficult times.

2. Inexperienced Beneficiaries Managing Your Investments

You have worked hard to build a solid investment portfolio, but what happens if the people inheriting it aren’t prepared to handle it? 

For many beneficiaries, stepping into this responsibility can feel overwhelming, especially without guidance. When unprepared, they may face challenges like poor management, rushed decisions, or even forced sales.

Taking the time now to prepare your beneficiaries, leaving clear instructions and appointing a trusted executor to manage your legacy temporarily can make all the difference. This gives your beneficiaries the breathing room and support they need as they step into their roles. 

3. Family Members Unaware of Your Assets

Many Singaporeans shy away from conversations about money or assets, largely due to cultural norms in Asian societies that view such topics as taboo. But this silence can lead to big issues when loved ones pass away. 

For example, a lot of money in insurance policies goes unclaimed simply because family members don’t know the policies exist. Some of these were bought decades ago, and with agents no longer in the industry, tracking them down becomes even tougher.³

And it’s not just about insurance. Families can easily overlook or lose what was meant for them without a proper list of assets like properties, bank accounts, or CPF balances. Even something as small as an unclaimed bank account can result in money being lost forever.

Creating a clear inventory of your assets and keeping CPF nominations up to date can save your family a lot of stress. It ensures nothing gets missed and protects their financial future. 

4. Overspending on Funeral Arrangements

Families often feel a strong sense of obligation to plan elaborate, sometimes costly, funerals. They may spend on expensive coffins, large venues, or big obituaries, thinking it’s what you would have wanted. Without clear instructions, your family may be left guessing, which can lead to unnecessary expenses.

Estate planning is an excellent way to communicate your wishes in advance. Discussing it openly before passing is also helpful, but putting it in writing provides everyone with a clear guide, allowing them to fulfil your wishes as intended. 

5. Financial Burden from Outstanding Debts

When we think about leaving a legacy, we want to provide for our loved ones, not pass on burdens. As such, outstanding loans and credit card balances don’t just disappear when we’re gone. If your loved ones had co-signed any loans with you, they could unexpectedly find themselves responsible for debts they weren’t ready to handle.

When your family is already coping with the loss, the last thing they need is to face unexpected bills or loan payments. By addressing outstanding debts now, you can spare your family any extra financial burden.

6. Guardianship Issues for Minors

If you have young children, estate planning helps ensure they are cared for by people you trust. Without naming a guardian, the question of who will look after them can become unclear, potentially leading to family disputes or even legal battles over guardianship. 

For children already dealing with the loss of a parent, witnessing family conflict can be confusing and emotionally overwhelming. Naming guardians in your estate plan not only protects your children from these uncertainties but also provides them with a secure path forward.

7. Complications in Business Succession

For family businesses, failing to plan for succession can cause significant problems. Without clear instructions, your family may struggle to decide who should lead, leading to confusion and disagreements. This can slow down operations or even result in losses which is something no one would want.

A succession plan provides a clear roadmap, setting out who should take over, how decisions are made, and what steps to follow. This ensures that your family isn’t left to figure things out on their own. Succession planning protects the business you’ve worked hard to build, allowing your family to carry it forward confidently.

The Bottom Line

When we neglect estate planning, we unknowingly pass on financial and emotional burdens to those we love. Your family might face tough decisions, unexpected expenses, or even disputes. Through estate planning, you can give them the clarity and support they’ll need during your passing. 

Consulting a certified estate planner can give you the peace of mind that your affairs are in order. Estate Planners have the expertise to guide you through the complexities of estate planning, ensuring that your wishes are clearly outlined and all potential blind spots are covered. With their guidance, you can spare your family from any confusion or surprise expenses down the road.

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We hope this article helped you in your financial journey. Share this with a friend who might need it too.

👋 Need additional advice and support on navigating your financial planning? Book a complimentary consultation with us.

Estate Planning services are provided by PFP Legacy Singapore Pte Ltd, a sister company of PFPFA Pte Ltd. 

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References: 

1. Dying without a will: 48% of Singaporeans surveyed do not have one | THE STRAITS TIMES
2. What Happens If You Die Without a Will in Singapore? | Singapore Legal Advice
3. What happens to a person’s assets when they pass on | Dollars & Sense

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_{The views expressed in this media do not necessarily reflect the views of PFPFA Pte Ltd (“PFPFA”). The information provided herein is intended for general circulation and not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use will be contrary to local laws or regulations. You should also note that the information presented does not have regard to the specific investment objectives, financial situation or the particular needs of any specific individuals; and therefore, may not be appropriate to your individual needs. You should seek the advice of your financial adviser representative or a professional before making any commitment to purchase or invest in any investment product.}

_{Estate planning and/or wills-writing services are deemed as prescribed non-financial advisory services. There are no regulatory safeguards for such services as they are not regulated under the Financial Advisers Act.}