One day, all of us will eventually forget to wake up (i.e. pass away). When that happens, we are sure you will have last words for your loved ones. With those last words read out from a will, you can leave this world with peace of mind knowing that your assets and loved ones are looked after. If you have not made a will yet, don’t forget to make one!
Reasons to make a will
I am not rich
- A Will is not just for the rich. Even if you have little or no assets to give away, you need a will to appoint an executor to manage your estate (i.e. handle the paperwork); for e.g. liaise with the bank to close your account or with your insurers to pay out the proceeds to your beneficiaries. If you don’t appoint someone to manage your estate, the court will do that for you. The latter option is longer, expensive and potentially acrimonious. Think about it: if your son was selected in your will as the executor, it feels like a badge of honour for him (~ ‘Mum trusts me, that’s why I got to do it’). In contrast, if he was appointed by the court as the administrator, it may feel like a burden to him (~ ‘I have to do it since no one wants to do it’).
Customize and feel special
- If you don’t have a will, the laws of intestacy will apply to your assets. But the intestacy laws may not suit everyone.
- Example 1: you are married with 2 children. Under the intestacy laws, your spouse gets 50% and the 2 children get 25% each. If your spouse is already 70 years old and suffers from dementia, do you really want to give so much to him/her? Your assets could be put to better use if you give more to your 2 children who are in their physical prime.
- Example 2: that cuddly grandchild of yours won’t get anything under the intestacy laws. Don’t you want to leave him/her something so that the child will remember grandpa or grandma?
Your arrangement may not be foolproof
- You may have arranged to open up joint bank accounts with each of your children. Your intention is that upon your death, all proceeds in the account will automatically go to the other joint account holder. Not quite. The surviving joint account holder may not have the right to close the account and take over the funds. Unless there is a right of survivorship clause as part of the terms and conditions for the bank account, the surviving joint bank account holder does not have the right to the money1. The bank will need to see a grant of probate, or a grant of letters of administration before releasing the money. In this regard, nominating an executor in your will is necessary so that you need to only apply for a grant of probate, as opposed to a grant of letters of administration which is more costly and tedious.
- Also, it may be impossible to pinpoint a beneficiary for each and every asset. The older one gets, the more things one accumulates. Some of these things, which may seem like rubbish now, may well turn out to be valuable in future. Disputes may then occur over the ownership of these ‘overlooked’ assets. If you make a will, your lawyer will include a residue clause so that these ‘overlooked’ assets will be distributed according to your wishes.
I already have a Lasting Power of Attorney (LPA)
- A will is different from a LPA. First, a LPA takes effect when you lose your mental capacity. But you are otherwise still alive. In contrast, a will takes effect upon your death. Second, a LPA is to appoint someone to act on your behalf, in terms of your personal welfare and/or property and affairs. In short, the intended beneficiary of a LPA is yourself. In contrast, the beneficiaries of a will are people other than yourself.
- It is preferred that have both a will and a LPA.
How to make a valid will
- In order for your will to be valid in Singapore, it must satisfy s. 4 – 6 of the Wills Act. In summary:
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- You (the will-maker) must be at least 21 years old;
- The will must be written (audio recordings not allowed);
- The will must be signed by you (the will-maker) at the end of the document, as well as by at least 2 other witnesses in the presence of each other (i.e. 3 of you if there are 2 witnesses);
- The witnesses must not be beneficiaries under the will.
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Conclusion
- Writing a will is like buying insurance. It you wait until you need it, it’s too late. Once you forget to wake up (i.e. pass away), it’s too late then to write a will. So, write to your loved ones your last words and get your will done today!
1 Lim Fung Peen, Where There’s A Will…A guide to setting up a Will and managing a loved one’s estate (Marshall Cavendish 2021) p 56.