By Peter Lee
While catching up with friends over coffee recently, our conversation drifted from family matters to business and politics. Eventually, one friend shared about the distribution of his friend’s parents’ estate, which had turned into a dispute among family members.
According to him, what started as a small disagreement gradually became ugly, ending with siblings no longer speaking to one another. He concluded by saying, “Sometimes money is not everything.”
Another friend quickly responded, “I agree but sometimes money is the only thing.”
Reflecting on both statements, I believe there is really no right or wrong answer. It depends very much on where we stand at that particular moment in life.
That conversation reminded me of an incident many years ago when I admitted my late mother to the hospital after she suffered a stroke. She was placed in the high dependency ward for observation. In the same ward, I overheard a conversation between another patient and his doctor. The patient had just undergone heart surgery.
When the doctor informed him of the surgery cost, his reaction was almost as if he was suffering another heart attack. He repeatedly asked whether any discount could be given, while the doctor tried to calm him by saying he would see what could be done.
At that moment, I realised that anyone placed in his situation would probably say money is indeed the only thing.
More recently, I witnessed two real-life incidents which again highlighted the importance of having sufficient funding and putting one’s affairs in order before desperate times arrive.
In one case, a surgical procedure went wrong, requiring a second corrective operation. The total medical and caregiving cost eventually came close to RM1 million. Part of the expenses was covered by insurance, while the remaining amount had to be funded from personal savings. Compounding the situation, the patient was also the primary caregiver for a spouse suffering from dementia.
Around the same period, another friend was diagnosed with cancer and advised to undergo immediate surgery to prevent the disease from spreading. Due to urgency, he had to borrow money from friends as his insurance coverage was insufficient. Seeking treatment at a public hospital was not a practical option because the waiting period could have been too long for his condition.
From these three incidents, I believe most of us would agree that when life itself is at stake, funding becomes the most important thing at that very moment. Equally important is ensuring that a Will is in place so that distribution of assets can be carried out according to one’s wishes.
Most of us understand these necessities, yet many delay taking action simply because there is no immediate life threatening situation before us.
None of us would wish to face such circumstances. However, these real-life experiences should serve as a wake-up call for all of us to plan ahead for ourselves and our families just in case the unexpected happens.
One of the first steps is to honestly assess how much medical funding we actually have if a crisis occurs. Our savings, EPF balances, liquid share investments or unit trusts may not always be sufficient. Therefore, there is no harm in considering medical insurance coverage. At the very least, it helps to ease the burden of hospitalisation costs and provides peace of mind to both ourselves and our loved ones. Subject to affordability, additional life or critical illness coverage may also be considered.
The next important aspect is the distribution of assets through a properly written Will. This becomes even more crucial when beneficiaries are incapable of caring for themselves due to medical conditions and depend entirely on us during our lifetime.
In such situations, careful thought must be given when appointing an Executor or Trustee who is capable, trustworthy and responsible. Equally important is deciding who should assume the role of caregiver. Distribution planning may also need to focus more on cash funding rather than illiquid assets. Consideration should therefore be given as to whether certain immovable properties ought to be liquidated, even during one’s lifetime, to ensure smoother administration later.
Ultimately, the objective of estate and financial planning is simple which is to ensure that when difficult moments arrive, everything we have carefully arranged will continue to stand by us and, more importantly, stand by those we love when we no longer can.
Because in life’s most vulnerable moments, what truly matters is knowing that our plans will always Stand By Me.