Making a Will: Why It’s Important, and What You Should Know

This was originally posted on Planner Bee.

What is a Will?

A will, also known as a last will, is a legal document that outlines a person’s wishes regarding the distribution of their property, assets, and the guardianship of any minor children upon their death.

It allows individuals to specify how they want their estate to be managed and who should inherit their assets. When writing a will, one may also designate an executor, the person responsible for carrying out the instructions in the will. In Singapore, this is legally recognised by the Wills Act.

Must you write a Will?

Creating a will is an essential part of estate planning, ensuring that one’s wishes are legally recognised and followed. This becomes especially pertinent when you have dependents like young, disabled children or elderly parents.

1. You decide how your assets will be distributed

Without a will, the distribution will follow the Intestate Succession Act. However, this will not apply to Muslims. The distribution of property belonging to a deceased Muslim domiciled in Singapore at the time of death is governed by Muslim law and the Syariah Court.

With a will, you can decide who receives your inheritance, including charity organisations.

2. You can appoint Guardians(s) to take care of your children

If a common disaster happens, resulting in both parents not being around to take care of their minor children, a pre-appointed guardian can be arranged to ensure the same level of care for their minor children will be continued. Without an appointment of a Guardian, it will be up to the Court to appoint one, and the outcome may not be aligned to the parents’ preferences.

3. You can appoint Executor(s) to manage your estate

With a will, you can appoint people you trust to execute your will and give them the power to act according to your wishes.

Without a will, the person who can have the power to manage your estate will be appointed by the court (usually the next-of-kin, husband or widow of the deceased).

4. Choose your funeral arrangements

With a will, you can state how you want your funeral arrangements to be carried out. It can be due to personal reasons or religious beliefs.

5. Relieve your family members’ pain and potential disagreements

With a will, you can minimise the possibility of disputes among your family members. This can allow your family members to mourn in peace.

Read more: Making a Will: What Is It, Why Is It Important, and What Happens When You Die

What is in my Estate?

• Properties such as HDB flats and/or any private properties
• Investments such as shares, unit trusts and/or bank accounts
• Liabilities such as debts and/or hire-purchase
• Personal items such as antiques, jewellery and/or luxury watches
• Other relevant items such as life insurance policies, business arrangements

Read more: How To Make a Nomination for Your Life Insurance in Singapore

Key appointments in a will

• Executor(s)

You can name the primary executor as well as substitute executors, in case the primary executor cannot act on your behalf. An executor can also be a beneficiary on your will.

• Beneficiary or beneficiaries

You can name your main beneficiaries and substitute beneficiaries so that you can take care of different scenarios that may happen to them. In this way, you can minimise the possibility of amending your will.

• Guardian(s)

You can name a guardian if you have minor children. This will usually take effect when both parents of the children are no longer around.

Making your will

You can approach a law firm to have a lawyer assist you in making your will. Alternatively, you can approach a will writing company, which specialises in will writing, to assist you in getting it done. There can be a cost difference in choosing between these two.

The requirements for a valid will in Singapore are:

• You must be at least 21 years old.
• You must be of sound mind.
• Your signature must be witnessed by 2 or more witnesses, who must also sign the will in your presence.

• The 2 main witnesses cannot be beneficiaries of the will, or spouses of beneficiaries.

Schedule of Assets

This document is a list of all your assets that make up your estate, such as your properties, investments, and liabilities, including their estimated value. It is a supporting document attached to your will.

If this document is not available, the executor with the assistance of a probate lawyer will have to prepare one, and this may take a long time as there will be a process to write to different institutions like banks and verify your assets under them. This may also incur additional costs.

It is always advisable to review your Schedule of Assets. This can take place whenever there are significant changes in your assets or a regular annual review. By doing this, your executor will not have a difficult time confirming your assets to prepare for submission to the Court.

A sample of Schedule of Assets

Key points to take note of:

• The distribution of CPF monies is not covered by a will. You will need to make a CPF nomination online to handle the distribution of your CPF monies.
• If you make a will when you are single, it will be revoked once you are married. However, this may not be the case when one is divorced. Therefore, it is important to review and make the necessary changes if the distribution arrangements differ.
• The Right of Survivorship rule in joint account situations. In most cases, the surviving joint account owner will claim all the money in the account. However, if there is a legal dispute, then the process of determining the intentions of the deceased joint account owner will be crucial and the whole process will not be so straightforward.

In summary, making a will is a responsible and considerate act that allows you to have control over the distribution of your assets, care for your dependents, and minimise potential conflicts among your loved ones. It is a fundamental aspect of comprehensive estate planning that provides peace of mind for both you and your family.

Read more: 3 Simple Steps To Nominate Your CPF Online