Writing Your Own Will
Recently, some friends (mostly young parents) talked to me about writing their own will. Some asked if it’s necessary to engage professional legal services or can go about it on a DIY approach.
I thought it’d be good to share some facts on will writing and estate planning here (extract from Law Society).
What is a Will
A person makes a Will to provide for the administration and distribution of what he owns ('his estate') among his beneficiaries after his death. This person is called 'the testator'. 'Beneficiaries' are those who inherit or benefit under the Will. The 'Executor' is the person nominated by the testator to administer and distribute his estate upon his death. Usually, the same person is appointed as executor and trustee (a person who has the power to hold the estate of the deceased on the death of the deceased).
If there are beneficiaries who are minors (persons under the age of 21 years) named in your Will, it will be preferable to have at least two Executors/Trustees who would be able to administer or hold any assets or invest or use any money for the benefit of the minors.
Do You Need a Lawyer
If you are 21 years and of sound mind, you may make your own Will and change it at any time during your life without consulting a lawyer. But the risk is that your home-made Will may be ineffective or invalid, causing your beneficiaries to suffer unnecessary expense. It is therefore in your interest to consult a lawyer who can advise you and draft your Will for you according to law. Furthermore, a copy of your Will can be lodged with the Registry of Wills to facilitate estate distribution in event of misplacement/loss of the original.
Administering Your Estate
Your Will takes effect upon your death. Your executors would have to apply to Court for a Grant of Probate. The Court will only issue the Grant after it is satisfied that all procedural requirements are met. Estate Duty clearance will be required before a Grant is obtained, (before the abolition of Estate Duty in 2008).
If you pass away without making a Will, your assets will be distributed according to the rules of intestacy as laid down in the Intestate Succession Act. If you die without making a Will, your estate may be distributed to persons to whom you do not intend to give anything.
Also, you cannot choose the people who will look after your estate. They are called "administrators" instead of executors although they will have the same responsibilities. They have to apply to Court for "Letters of Administration" instead of the Grant of Probate and the procedure is generally more complicated and lengthy. For example, the administrators will have to provide two guarantors unless they get approval from the Court not to have such guarantors.
Therefore, if you want to provide especially for your family members, friends or a charity after your death, you should consider making a Will as it will be easier and more convenient.
Assets NOT covered by a Will
Examples include:
- Joint Tenancy Properties;
- CPF Account monies (require CPF Nomination or else distributed by Intestate Succession Act rules);
- Assigned Insurance Policies;
- Trust Accounts/Nominations.
Since September 2009 with the inception of the Insurance Nomination law, it’s also important to consider this in the planning of one’s estate. The use of Trust or Revocable Nominations for claim proceeds from one’s insurance policies may feature significantly in your estate plan depending on your life stage (married or single?) and the nature/size of your assets. Best of all, it’s free!
