Plan your legacy, write a will

If you’ve only got a minute:

• A will ensures your assets are distributed according to your wishes, not intestacy laws.
• A will allows you to specify who inherits your assets and in what proportions, providing for loved ones and minimising potential conflicts after your passing.
• Seek professional guidance to create a legally sound will, especially for complex situations or substantial estates, avoiding potential challenges during probate.

The loss of a loved one is often a difficult time, and it can be made even more challenging when families disagree about inheritance. This happens often due to the absence of a will.

According to a 2022 survey by a wealth management firm, 48% of Singaporeans don’t have a will. This lack of a will leaves many families facing uncertainty, confusion, and sometimes painful disputes. With a well written and documented will, this ugly situation can be avoided.

Why do you need a will?

A will is a legal document that lets you decide who will inherit your assets -your home, savings or cherished possessions – after you pass away. Without a will, Singapore’s Intestate Succession Act, with its fixed rules, will determine how your estate is distributed. These rules may not reflect your wishes.

Singapore’s Intestate Succession Act

Notes:

 ^ If a child has passed away, then the grandchildren can legally represent him/her to claim their parents’ portion of the estate

*If a sibling has passed away, his or her children can legally represent their parent to claim their parents’ portion of the estate

Muslims in Singapore can make a Shariah-compliant will under the Administration of Muslim Law Act, which follows Islamic inheritance rules. Without a proper will, your estate might not be distributed according to your wishes, whether under civil law or religious law.

Having a will is particularly important if you want to provide for unmarried partners, stepchildren, or causes you care about. If you have young children, a will lets you appoint guardians to care for them and manage their inheritance. Otherwise, the court makes these decisions, and the outcome may not align with your desires. Clear instructions in a will also help prevent family disputes, which can arise even in the closest families during times of emotional stress.

What is not covered by the Will?

While a Will is a useful tool, it's important to understand its limitations. A Will doesn't cover all types of assets. Jointly owned assets, like a house or a joint bank account, automatically pass to the surviving owner. Your CPF savings are distributed according to your CPF nomination, and certain insurance policies have designated beneficiaries. Assets held in irrevocable trusts are managed according to the trust's terms.

Legal requirements for a valid will

You must be at least 18 years old and of sound mind. The Will must be in writing and signed by you, the testator (the person making the Will), in the presence of two witnesses. However, your witnesses cannot be beneficiaries of the Will. Choosing a executor

Choosing an executor

Choosing your executor carefully is essential. Executors must be at least 21 years old, mentally sound, and not bankrupt. Consider family members, friends, partners, or professional executors like trust companies or lawyers.

Key components of a Will

Crafting a comprehensive Will involves several key components:

1. Identify Yourself - Clearly state your full legal name and address.
2. Appoint your Executor(s) and Trustees - Choose trusted individual(s) to manage your estate.
3. List Assets - Detail your possessions, such as property, investments, and personal belongings and state where they are located.
4. List Liabilities - Specify any debts that must be settled before distributing your assets.
5. Name Beneficiaries - Identify who inherits your assets and what should they receive.
6. Appoint Guardians (if applicable) - Designate guardians for minor beneficiaries.
7. Name Backup Beneficiaries (optional) - Provide alternatives if a primary beneficiary passes away before you.
8. Include a Revocation Clause - Invalidate any previous wills.
9. Include a Residuary Clause - Direct the distribution of remaining assets.

Probate and execution of a will

After you pass away, your executor can apply to the Singapore courts for a Grant of Probate, the legal right to manage and distribute your estate.

Disputes can arise if someone challenges a will. If needed, the Family Justice Courts can come into handle these disputes.

By anticipating potential challenges and having a clear will with a capable executor, it can make the distribution of assets a smoother process for all involved.

Useful tips

Marriages automatically revoke your will, unless it was stated that it was made in the knowledge of an impending marriage. However, a divorce or separation does not revoke it. It’s a good practice to update your will after major life events like marriage, divorce, or the birth or adoption of a child, as these changes can significantly impact how you want your assets to be distributed.

You may want to review your will at least every 5 years and after any major life event. If your will requires substantial revisions, consider drafting a new one entirely. This new will should explicitly revoke all prior wills and codicils. After creating the new will, destroy any previous versions to prevent confusion.

Appoint executor(s) who will potentially outlive you and have the capability and willingness to handle your affairs and take care of the financial needs of your children.

In your will, you may also wish to appoint alternate executors in the event your first choice is unable or unwilling to serve.

Finally, you should use clear and unambiguous language in your will to prevent misinterpretations and ensure your wishes are carried out accurately.

Options for drafting a Will

There are several options for drafting your will in Singapore. Do-it-yourself (DIY) wills, using online templates, can be a budget-friendly option, but they may not address your specific needs and could lead to legal complications if not prepared correctly.

Hiring a lawyer offers expert guidance, ensuring your will is legally sound and tailored to your situation, although this comes at a higher cost. If you have complex circumstances or significant assets, seeking legal advice may be a better option.

Store your will safely

Safeguarding your will is crucial, as your executor needs the original document to obtain a Grant of Probate and administer your estate. You can store your will at home, in a safe deposit box, or with your lawyer.

Regardless of where you choose to keep it, it is good practice to inform your executor or family about its location, including access codes if applicable. Furthermore, consider recording this information with My Legacy vault for long-term accessibility.

Conclusion

Having a proper will done provides peace of mind for yourself and your loved ones. It allows you to have your wishes respected, minimises potential conflict, and for you to leave a legacy.

There is no better time to think about making a will than now, when you can. So, avoid the mistake of putting it off until it is too late.