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32. Finances 101: 10 Perspectives - From my point of view. 6. Five Perspectives: Values. Value #5: L

My last post was spent talking about taking care of what we have, via protection with mainly, insurance.

Today I cover the last of the 5 values that govern my finances world, leaving a legacy for the future.

After all is said and done, what am I living my life for? What happens when I move on from this world? What will I leave behind?

From the start, when my wife and I decided to have kids, one of the main things in life is to bring them up well, as kids are one of the main legacies we leave behind. Their upbringing, their lives, their values, etc. But that’s a story for another day.

Now, I want to focus on the financial parts of the story.

How do we plan such that what you have built lives on?

  1. Identify people, key people you want to leave your assets or properties to. For example, your children, someone or two from your family, some best friends;

  2. Arrange for contingencies such that in the event that you pass from this world, at any time, there will be arrangements in place to pass over the required finances to the parties in (1) above;

  3. Prepare a list of what you have that you want to pass down to loved ones. Some examples are:

  • EPF

  • Insurance policies (all types)

  • Assets: House, car, investments, fixed deposits, savings accounts, current accounts, piggy banks, etc

  • Businesses

  • Intellectual Property

  • Special items: memorabilia

  1. Prepare a list of all the liabilities you have, that you want settled to ensure they don’t burden your loved ones. Some examples are:

  • Housing loans, car loans, personal loans, credit card balances

  • Taxes due to the Inland Revenue

  • Business creditors

  • Informal loans from individuals, friends, etc

  • All types of bills: quit rents, other bills from any types of property maintenance

Minimising debt to be passed on to loved ones

  1. Housing loans / car loans: Ensure that you take MRTA (for property) and insurance such that upon your death or permanent disability, the insurance policies can kick in and settle all those liabilities, leaving clean slates and allowing those assets to remain in your possession.

  2. Credit Card bills: Ensure you pay all balances all the time so that at any given time, you only owe the bank the current month's bill

  3. Taxes: Pay all your taxes on time, owe nothing to the Inland Revenue, and manage your taxes such that at any point in time you owe them only the current year's taxes. If you are working as an employee, ensure that your employer performs monthly deductions from your salary so that you pay as you earn, and don't have large outstanding bills.

  4. Informal loans from friends and family: To the best of your ability, repay all such loans as soon as you can, try not to owe anyone money.

  5. All types of bills: Keep them all promptly paid up. Keep a list of such bills such that if you depart abruptly, your loved ones know what ty=hey have due, and can easily decide if they want to continue payments or stop any such services.

  6. Business creditors: Keep good records such that whomever taking over your business will know who is owed what

Ensuring loved ones receives your assets

  1. Will writing: Engage a professional will writing company to assist with safekeeping your will, its contents and being the executor in case / when you go. In your will, name a few people you trust to handle these stuff for you.

  2. Insurance: Ensure all your insurance policies are updated with the people you want to leave the money to.

  3. EPF: Go check once in a while to ensure the beneficiaries in the EPF records are who you want them to be.

There are many more ways to future proof yourself... but that is another story...


Living life is difficult, but planning for leaving life can be quite difficult as well. For the financial area, we need to be strong… plan it so that there is less hassle moving forward.

Have you prepared for the future?

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