Here Are The Nominees...

Here Are The Nominees...

Not many people know this, but if you do not have a Will, your insurance proceeds will be distributed according to intestate law.

Case in point: Couple of days ago, a client called to ask me how much her mother will get from the whole-life policy she bought if she passed away. She was quite surprised when I told her that under the intestate law, her mum would get nothing. As it stands now, her husband will get 50% and the remaining 50% will be divided between her two kids.

But all is not lost. She can nominate her mother as a beneficiary under the Insurance Act.

There are two types of nominations:

  1. Trust or Irrevocable Nomination, commonly known as Section 49L.
  2. Revocable Nomination, commonly known as Section 49M.

For the first type of nomination, the beneficiaries can only be your spouse or children. You will lose all the rights to your policy. And as the name suggests, you cannot undo the nomination unless the beneficiaries agree to it (good luck to you if the beneficiary is an embittered ex-spouse). But the proceeds will be protected from creditors.

For the second type of nomination, which is what I recommended to my client, you retain all the rights to your policy and you can nominate anyone (yup, anyone…). Unlike the Trust Nomination, you can undo it any time you want. You do not need to beg or threaten. But the downside is that your money will not be protected from creditors.

 

So if for any reasons, you want somebody, who is not eligible under the intestate law, to get your insurance payout, you might want to do a Revocable Nomination. It is a cheaper option than doing a Will. In fact, it is free.

(Obviously, there are more to nominations than what I have written, but they are beyond the scope of this post. Will write more in another post.)

要查看或添加评论,请登录

Axl Ching (Estate/Wealth)的更多文章

  • Would You Have Something to Leave Behind?

    Would You Have Something to Leave Behind?

    You might remember Huang Wenyong, the veteran local actor and the first generation leading man of Singapore…

    3 条评论
  • The House of The (Former) President

    The House of The (Former) President

    In August 2022, Ong Tze Guan, the elder son of former president Ong Teng Cheong, brought a legal action against his…

    1 条评论
  • S'pore Couple Plans to Leave Money to Charity After Their Death

    S'pore Couple Plans to Leave Money to Charity After Their Death

    Around 10 years ago, Dr Audrey Looi and Dr Ang Beng Ti found out their son, James, suffers from a disease which causes…

  • When A Joint Owner Does Not Inherit

    When A Joint Owner Does Not Inherit

    (This is a real case that happened in Singapore and has been reported in the news.) In 1981, a father got one of his…

    2 条评论
  • How to Leave Money For Your Kids Without Spoiling Them

    How to Leave Money For Your Kids Without Spoiling Them

    Lydia Sum was one of the most popular and richest comedian in Hong Kong. When she passed away in 2008 from liver…

    3 条评论
  • Swatow Group Story: How It Could be Prevented

    Swatow Group Story: How It Could be Prevented

    The Swatow Group was a very successful restaurant chain in Singapore back in the late 80s. But when the owner passed…

    13 条评论
  • How To Prevent A KO to Your Plan?

    How To Prevent A KO to Your Plan?

    “Everyone has a plan until they get punched in the mouth.”– Mike Tyson When everything goes according to plan, the…

  • DO NOT READ THIS... If You Want Your Money To Go To People You Don't Love.

    DO NOT READ THIS... If You Want Your Money To Go To People You Don't Love.

    How would you feel if you found out that the Government has given all your money to your least favorite uncle/aunty or…

    3 条评论
  • Would You Like To Have This One Money Problem?

    Would You Like To Have This One Money Problem?

    Can you take a minute to imagine this…? On the 1st of this month, you receive $10,000 in your bank account. What will…

    4 条评论
  • Why Kind of Income Do You Want?

    Why Kind of Income Do You Want?

    “The question isn’t at what age I want to retire, it’s at what income.” – George Foreman, two-time world heavyweight…

社区洞察

其他会员也浏览了