I’m single and intend to buy resale flat in the next year or so, using bank loan. What if I pass away subsequently, without making a will? Who will continue to bear the liability of mortgage payment? - Seedly
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Anonymous

Asked on 07 May 2020

I’m single and intend to buy resale flat in the next year or so, using bank loan. What if I pass away subsequently, without making a will? Who will continue to bear the liability of mortgage payment?

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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.

More Details:

The Administrative Process on Dying without a Will in Singapore

Intestate Succession Act 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.

More Details:

What is a Will Singapore

I share quality content on estate planning and financial planning here.​​​

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Ninja

07 May 2020

All home buyers that buy hdb are required to sign home protection scheme. So hdb owners do not have to worry about it.
Pang Zhe Liang
Pang Zhe Liang

07 May 2020

Unfortunately, this is not always true. For instance, the home owner may not be using CPF to pay for the mortgage. What's more, he may have applied for an exemption. Therefore, it is not right to assume that the home owner do not have to worry about the liability. Even so, a Will ensures that the estate reaches the intended beneficiary. This is especially important as not everyone is eligible to inherit and keep a HDB flat in Singapore. I hope this clarifies. =)
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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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Thank You!
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