A will is one of the basic building blocks of estate planning and wealth transfer. A survey shows that individuals in one of the world's greatest wealth hubs are not properly prepared and many do not have the paperwork in place.

A study of 495 people in Singapore has found that more than half of them (56 per cent) don’t have a will and only 28 per cent of them have a completed will, suggesting that many individuals haven’t started to prepare for transferring assets when they die.

The study was conducted by the Society of Trust and Estate Practitioners, the global industry association.

The survey showed that 39 per cent of people have no delegations or directives in place should they become incapacitated, such as lasting powers of attorney, and a huge 80 per cent do not have life insurance.

Such findings are a reminder that while the wealth management industry boasts a range of asset transfer, growth and protection services and products, the most elementary tool – the will – is often neglected. It is noteworthy that this study coincides with the COVID-19 pandemic, which may have put mortality risk under a harsher spotlight.

STEP said its study shows that the notion of “it will never happen to me” endures in Singapore and that people should think much more carefully about preparing for end-of-life events and incapacity. STEP called for more education, particularly with respect to the impact of digital technology and trusts on the administration and succession to their property. Irrespective of culture, age, occupation and income, death and disability are events that all adults need to consider if they want to ensure that their wishes are carried out.

Of those people polled who have a will, 14 per cent have one that is up to date, 14 per cent said they have one but it is inadequate or does not properly express their wishes, and 16 per cent have no will currently but claim to have one in development. Some 62 per cent of those who own businesses do not have a succession plan.

“Research on estate planning and the factors that impact estate planning decisions is relatively limited in Singapore. This survey provides an interesting insight into Singaporeans and is consistent with the lament of asset owners as they look to the development of the COVID-19 situation in Singapore and across the world that they have not made adequate arrangements for their families and loved ones,” Bock Eng Sim, branch chair at STEP in Singapore, said. 

“Singaporeans are not adequately prepared for end of life and disability. The results point to the need for more education on the importance of planning for your family’s future, and the role that STEP-qualified advisors can play in this,” she said.