Importance of financial planning during one’s lifetime

Contributed by EUNICE LI DAN YUE – 

Financial Management Crucial For All

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For most of us, writing a will is certainly not in our agenda when we are still alive, especially when we are at the peak of our career. However, consider the following scenario: it can happen to both you and me, your grandchildren, or your in-laws.

Issued Faced By A Family Member When A Will Is Not Being Drawn Up By the Son Prior To His Demise

My Mom has a friend who has a son and a daughter. The friend was previously living with the son in his 40s and the daughter-in-law in a 3 bedroom flat, together with a baby and the maid. However, the son has a family history of high blood pressure which requires constant medication on a daily basis, though he usually skipped the medicine. On one day when the son skipped the medicine, he collapsed at work and passed away on the spot.

However, as the son did not make a will, his wife requested that the mother moved out of the house, as she wants to move to another house.

Luckily, the daughter agreed to sell her current bedroom flat, to purchase a 3 bedroom flat, and she sacked the maid so that the mother could help her look after the baby, when she and her husband are at work.

Consider the opposite too: if the daughter does not agree to let the mother move in with her, the mother would probably end up on the streets.

How To Prepare For Future Of Family Members During One’s Lifetime In Case Anything Untoward Happens?

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For many, they feel obliged to set aside a portion of their finances for their children and the younger generation.

This situation can certainly be solved when prior to the son’s demise, he wrote a will indicating what is to be done with his current house and his other possessions. I am sure that he would have decided carefully beforehand where his mother was to live should he pass away unexpectedly.

So what has this got to do with you and me? It has everything related to each one of us because this can happen to us too. For example: our children could end up being kicked out of their home if we do not plan in the event we are no longer around. If we have minor children, we certainly need to know if they can inherit our HDB flat if we pass away.

This highlights the importance of financial planning and its relevance to the ordinary man-in-the-street.

Importance Of Filial Piety In Chinese Culture

What makes our Chinese culture unique is the filial piety, that children and parents always plan the best well in advance, for each other. In this instance, it is always better to be safe than to be sorry.

 

By Eunice Li Dan Yue

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