08 May 2020
Your legal beneficiary will be responsible. Here is how it works in Singapore.
Upon your demise and without a valid Will, the administrative process will take place and your estate (including the resale flat) will be distributed according to the Intestate Succession Act in Singapore.
Above all, the law will dictate who is the legal beneficiary for your resale flat. If you have an insurance policy that covers the mortgage, e.g. Home Protection Scheme (if you are using CPF to pay for a HDB), private term insurance, then the mortgage should be cleared.
Otherwise, your beneficiary will be responsible to clear your liabilities, or to sell the flat.
In order to prevent unnecessary complications, I will always advise my clients to go through comprehensive estate planning and to draft a Will. This protects both your beneficiaries and your rights.
I share quality content on estate planning and financial planning here.
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Without a will, you pass on all your assets and liabilities via the Intestate Succession Act.
So if you're unmarried and without kids but your parents are around, they'll get the property and the mortgage.
But since you're buying resale, you'll have the Home Protection Scheme which will clear the mortgage of your HDB upon your demise.
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