Most people only require a simple will that
will cost a few hundred dollars to have a professional draft for
them. Many people in Singapore are “asset rich but cash poor”.
While they may not have large amounts of ready cash at their
disposal, many people in Singapore are putting away money towards
their home, which alone is often worth at least half a million
dollars in today’s prices, and likely to increase over the years.
It only takes a small investment to ensure that your assets (which
may number in the millions in a couple of years) are properly
distributed after you are gone.
That’s fine most of the time, but what happens
if your spouse passes on before you? Or if you both pass on
together (such as during a car accident). What if at some point
your spouse remarries, or has children or step-children with
another partner? By making out a will you can ensure that your
estate is distributed in the way that you want, to protect the
legacy that you leave behind, in a way that does not disadvantage
your spouse. Another important aspect of your will would be to
designate a guardian for your children if they are still minors
when you pass on.
If a person passes on without a will, in
Singapore the Intestate Succession Act (the “Act”) will apply, but
only to provide for default and very general rules as to how a
person’s estate shall be distributed. For example, under the Act,
siblings often do not receive any portion of an estate unless the
person passed on without being survived by any spouse, parents, or
issue. In addition, there is an issue of appointing an
administrator of the estate. Since there is more than one person
who will be eligible to administer your estate under the Act,
disputes may arise between beneficiaries as to who should
administer your estate.
The reality is, we will never know for sure
when and how we will pass on. In the absence of a will, issues such
as the appointment of guardians, and distribution of monies may
take many months, sometimes years if there is lengthy litigation,
to resolve. In the meantime, life for our loved ones such as young
children are severely disrupted especially if they have no means of
supporting themselves in the meantime.
There are no restrictions at law in appointing
a beneficiary of your will to be an executor as well.
Although it is recommended that you keep the
contents of your will private and confidential, eventually its
contents will be made public upon your passing. This is because
probate is a public legal proceeding, the details of your estate
may be publicly accessed by practically anyone. Including busybody
neighbours and companies looking to sell your beneficiaries
products and services. They can find out things such as the balance
in your savings account, the properties you own, and the like. If
you are interested in exploring possibilities in keeping your
private affairs confidential, do consider speaking to a competent
estate planning lawyer.
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