Just some things to note
HDB Flats / Private Property –
Depends on the ownership – Sole Name / Joint Tenancy (based on survivorship) / Tenancy in Common (based on percentage agreed – may not be so good for business owners who are personal guarantors for bank loans)
For HDB flats - Tenancy in Common might be tricky. You can’t own 2 HDB flats in Singapore.
E.g. Husband 50%, Wife 50%. Husband passes away and his 50% forms part of his estate for distribution. If he has children, estate distribution becomes Wife 50%, children 50%. (Intestate Succession Act, if without a Will)
Since the house is part of that estate, the children has to sell back their share to their mother if they are already HDB owners themselves. If the children are minors, then have to apply to hold in trust (subject to approval from HDB)
CPF – Goes to nominated person(s) but not via CPF, but cash or bank transfer. Processing time: about 5 weeks. Bypasses the Will. (Nominations are revoked by marriage)
But if the nominees are minors below 21, the funds will be transferred to Public Trustee which you have to pay a fee annually.
Insurance – nominated beneficiaries… bypasses the Will as well. Fuss free way to pass on your inheritance. However one thing to note is if your policy is bought before Sept 2009 and your named beneficiary is your e.g. Ex-spouse, you cannot change the beneficiary without his/her consent (Section 73 trust)
A good will should also encompass a Total Disaster Clause.
Writing your own will is possible but risky… any mistakes made will render it useless and revert your estate distribution back to following the state law of the country.
Joint Accounts also bypasses Wills but case to note is this: if your joint account is with e.g. Child A and you pass on without a Will… Child B and C etc can contest in court that the Joint Account is held in Trust, and not for Child A to inherit.
Those with young kids – writing a Will allows you to name up to 2 guardians in the event that both parents pass on together.
Guardians will be the appointed Trustees for finances and welfare. If parents pass on without appointing guardians, your children (below 21) will be placed in foster homes – strangers, until the court rules kick in, which can take months). And the problem is the court will just appoint any family member whom they think is the best. But if you are still alive, you know for sure you will NEVER place your child in their care.
Anyone in the midst of divorce should do a Will fast… Divorce takes time to finalise (months/years). If anything were to happen before that, your estate will still be distributed to your current wife aka ex-honey.
Best advice to all is find a proper Will consultant that does financial planning too.
Cheers!
