Will Writing: Is it for Everyone?
Did you know that according to recent surveys, over half (53%) of Singaporeans have not written a Will? Despite the country’s reputation for meticulous planning and financial prudence, many individuals overlook the importance of estate planning. This lack of planning can result in unnecessary legal disputes, tax burdens, and emotional strain on loved ones during already difficult times.
As of December 31, 2023, the Public Trustee's Office (PTO) in Singapore held a total of S$211 million in unclaimed monies. These funds are held by PTO to be distributed to rightful beneficiaries, but remain unclaimed if no claim is made. If no claims are made within 6 years, the unclaimed funds will be transferred to the government. As Singapore’s population ages and asset values grow, the importance of having a clear estate plan becomes even more crucial.
Is Will Writing for Me?
The truth is, everyone can benefit from having a Will, regardless of age, wealth, or family situation. A Will is a vital tool that ensures your assets are distributed according to your wishes. It helps to avoid family disputes, provides clarity, and ensures your loved ones are taken care of in the way you intend.
For example, if you are married or have children, a Will allows you to specify guardians for your minor children, ensuring they are cared for by someone you trust. It also provides peace of mind that your assets—such as property, savings, and personal belongings—will be distributed among your beneficiaries. Without a Will, your estate may be divided according to Singapore’s intestacy laws, which might not reflect your personal wishes or family dynamics.
What Happens if I Die Without a Will in Singapore?
If you pass away without a valid Will in Singapore, your estate is considered to have “died intestate.” In such cases, the Singapore Probate and Administration Act governs how your assets are distributed. The law prioritizes relatives based on a fixed hierarchy—spouse, children, parents, siblings, etc.—regardless of your personal relationships or intentions.
This process can lead to several issues:
- Unintended beneficiaries: Assets may go to relatives you did not intend to benefit.
- Delays and legal costs: Probate proceedings can be lengthy and costly, especially if disputes arise.
- Family disputes: Lack of clarity can cause disagreements among family members, leading to bitterness and strife.
- Inability to control asset distribution: You have no say over who inherits what, which might not align with your wishes.
Dying intestate can create added stress for your loved ones during an already challenging time. It underscores the importance of planning ahead with a proper Will.
What Happens if I Die with a Will in Singapore?
Having a valid Will in Singapore simplifies the distribution process. When you die with a Will, the document guides the executor to administer your estate according to your wishes. The process involves applying for a Grant of Probate, which confirms the validity of your Will and authorizes the executor to manage your assets.
Key benefits include:
- Control over asset distribution: You specify exactly who inherits what, including specific gifts or assets.
- Appointment of guardians: You can name guardians for your minor children, ensuring their care.
- Minimized disputes: Clear instructions reduce family conflicts and misunderstandings.
- Faster resolution: Probate proceedings are usually quicker when a valid Will exists.
It’s important to periodically review and update your Will to reflect any changes in your circumstances, such as marriage, divorce, or acquiring new assets.
The Importance of Clear and Coordinated Estate Planning: A Real-Life Experience
I once met a client, Mr. Tan, who had three children. He had a Will with the intention to distribute his home to his wife upon his demise, and after her passing, for the property to be divided equally among his children. At first glance, this seemed straightforward, but as we reviewed his estate plan, two issues emerged that underscored the importance of thorough and coordinated estate planning.
The First Issue: Inconsistent Wishes
Mr. Tan’s wife also had a Will, which indicated her desire to give 10% of her estate to her single sister and 30% to each of her three children. These intentions created a potential conflict. If Mr. Tan’s estate was distributed as per his Will, but his wife’s estate was distributed differently, it could lead to disagreements or even legal disputes among the children and other beneficiaries. Without proper coordination, the assets might not align with the family’s overall wishes or could create unintended inequalities.
The Second Issue: Age and Future Needs of the Children
The second challenge was more practical. Mr. Tan’s youngest child was only 2 years old. His two older children were 15 and 18, with significant age gaps. If the estate was distributed immediately upon his passing, the younger child might not have the maturity or resources to manage an inheritance at such a young age, while the older children might be well into adulthood. This raises questions about guardianship, trust arrangements, or staged distributions to protect the interests of the minor child and ensure fair treatment of all the children over time.
Lessons Learned
This experience highlights how having a Will alone is not enough. It’s crucial to ensure that your estate plans are comprehensive, coordinated among all involved parties, and tailored to your family’s unique circumstances. Proper estate planning might involve setting up trusts for minor children, ensuring that your assets are distributed in a way that reflects your family’s needs, and communicating your wishes clearly with your spouse and beneficiaries.
Conclusion
Writing a Will is a responsible and beneficial step for everyone, regardless of age or wealth. It provides peace of mind, ensures your wishes are respected, and helps maintain harmony among your loved ones. Whether you have a simple estate or a complex one, having a clear, legally valid Will can make a significant difference during difficult times. Without careful planning, even well-intentioned Wills can lead to confusion or unintended outcomes. Consulting with estate planning professionals can help you create a cohesive plan that considers all these factors, giving you peace of mind that your wishes will be honored, and your loved ones will be taken care of.
Don’t wait until it’s too late. Start planning today.
Download Our Guide Today!
Title: Will Writing – 9 Questions to Ask Yourself
This complementary guide will help you reflect on some of the most important decisions to make before writing your Will. It covers critical questions about asset distribution, guardianship, beneficiaries, and more, ensuring you’re well-prepared to create a comprehensive estate plan that truly reflects your wishes.
Disclaimer
- The views expressed in this media do not necessarily reflect the views of PFPFA Pte Ltd (“PFPFA”). The information provided herein is intended for general circulation and not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use will be contrary to local laws or regulation. You should also note that the information presented does not have regard to the specific investment objectives, financial situation or the particular needs of any specific individuals; and therefore, may not be appropriate to your individual needs. You should seek the advice of your financial adviser representative or a professional before making any commitment to purchase or invest in any investment product.
- Estate planning services is provided by PFP Legacy Singapore, a sister company of PFPFA Pte Ltd. Estate planning and/or will-writing services are non-financial advisory services and thus are not regulated under the Financial Advisers Act.
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