Why estate planning matters even if you are not rich

When Singaporeans hear the words estate planning, most picture tycoons arguing over mansions, family businesses, or offshore trusts. Ordinary folks shrug it off, thinking: “That is for the rich, not me. I only own an HDB.”

But here is the truth: if you own a home in Singapore, whether it is a landed, condo or HDB, you already have an estate big enough to spark disputes, legal costs, and family headaches.

What a HDB owner might pass down

Singapore is a country where “ordinary” assets add up quickly.

• The median resale HDB price in 2024 is over S$600,000.
• Add your CPF savings (average balances for Singaporeans in their 40s are around S$180,000–S$200,000).
• Throw in insurance payouts (a basic life policy can easily cover S$200,000–S$500,000).

Suddenly, you are looking at an estate worth S$1 million or more, even without private property or flashy cars. That is not small change.

Without a proper estate plan, the distribution of these assets falls under the Intestate Succession Act (ISA) if you do not have a will. And the ISA does not care about your family dynamics or personal wishes; it follows a rigid formula.

What happens if you do not plan

Here is how intestacy works in Singapore if you die without a will (and you are not Muslim, as Muslim estates follow Syariah law):

• If you leave behind a spouse and kids → your estate is split 50% to your spouse, 50% to your kids.
• If you leave behind a spouse but no kids, and parents are alive → 50% to spouse, 50% to parents.
• No spouse, no kids → everything to parents.
• And so on.

Sounds fair? Not always.

Example: Imagine a middle-aged couple with an HDB and two kids. When the house was first purchased, it was bought solely under the husband’s name before he was married. The husband then passes away unexpectedly without a will. By law, half the HDB share goes to the wife, but the other half is split equally among the kids. That means the children who are legally minors now co-own the flat. The wife cannot sell or refinance the flat without applying to court on their behalf. Extra legal costs, extra stress, all while grieving.

CPF and HDB: overlooked legacies

• CPF does not follow your will. It follows your CPF nomination. If you have not updated it since before marriage or kids, your money may go to the wrong person.
• HDB joint tenancy vs tenancy-in-common. Most couples buy HDBs under joint tenancy, which means the surviving spouse automatically inherits the deceased’s share. But if you have chosen tenancy-in-common (e.g. for financial planning reasons), the deceased’s share follows intestacy or the will. Few people understand the difference until it is too late.

Common myths about estate planning in Singapore

• “I do not need a will, my spouse automatically gets everything.”
  False. If you have children, your spouse does not inherit 100%.
• “Estate planning is expensive, only lawyers can do it.”
  A simple will in Singapore can cost as little as S$200–S$400. That is less than a family staycation.
• “I already have life insurance, so I am covered.”
  Insurance pays money, but estate planning ensures it goes to the right people, in the right way, without legal bottlenecks.

What a practical estate plan looks like

You do not need a trust in the Cayman Islands. For most Singaporean families, estate planning boils down to four key steps:

• Make a will
  Decide who inherits your property share, cash, investments, and personal belongings. Avoid intestacy complications.
• Update your CPF nomination
  Especially after marriage, divorce, or kids. CPF overrides your will.
• Review life insurance beneficiaries
  Ensure payouts go to the right people. Some prefer to name their spouse; others use a trust if beneficiaries are young children.
• Plan for guardianship
  If you have young kids, appoint a guardian in your will. Without this, the courts decide who takes care of them.
• Consider Lasting Power of Attorney (LPA)
  Estate planning is not just about death; What if you are incapacitated? An LPA lets someone you trust manage your affairs.

A Singapore example: the family dispute that could have been avoided

A widowed mother of two died suddenly, leaving behind a fully paid 4-room HDB. She had no will. By law, her estate (the HDB flat) was split equally between her two adult children. The problem? One child wanted to sell and cash out, while the other wanted to continue living in it. The dispute dragged into court, souring family ties.

Had she made a simple will, she could have clearly stated her wishes, sparing her children from both legal costs and emotional conflict.

The bottom line

Estate planning is not about wealth. It is about clarity, peace of mind, and protecting your loved ones from unnecessary disputes.

If you own an HDB, you already have a valuable estate. Do not leave it to chance, outdated laws, or assumptions. A few hours spent planning today can save your family months (or years) of stress tomorrow.