Maximise Your Legacy: The Importance of Will Writing in Estate Planning

The function of a will is to help distribute your estate!

• Your estate includes everything you own – bank accounts, pensions, property, health care wishes, pets, insurance policies*, investments, etc. Your estate net value considers your assets and liabilities, fees and expenses, and the type of property owned (if applicable).
• An estate plan involves planning how you would like your estate distributed after you pass away. It is important to plan for the time when you are no longer able to care for your loved ones, no matter what your age or net worth. 
  
• There are multiple ways to transfer your estate, including a will, trust, probate and lasting power of attorney.

One of the key aspects of an estate plan is your will, which helps you in distributing your estate. Your will is a written document that is alterable at any time. If you are unsure as to whether your will is valid, it may well be worth seeking professional advice on the topic.

Do I Need a Will?

If you have dependents, such as children, then yes, we’d consider it essential for you to have a will. wills, like pensions or insurance, are often associated with the later stages of adulthood; however, it is in your best interest to prepare from a young age. Your will can be as detailed as you like.

Writing a will means that your estate is not distributed under Singapore’s Intestate Succession Act after you pass away. Take note of these rules, as they may not align with your interests!

Note – the Intestate Succession Act does not apply to Muslims who follow the Islamic inheritance law. Muslim estate beneficiaries must apply to the Syariah Court for an Inheritance Certificate to demonstrate each beneficiary's share. Following issuing an Inheritance Certificate, you may need to obtain a Grant of Probate or Letters of Administration. Muslim estates can be distributed through a hibah or nuzriah. Only a third of a Muslim's estate can be handed over through a will to individuals not entitled under the Inheritance Certificate.

We highly recommend writing a will, as the process under the Intestate Succession Act can take a lengthy amount of time and cause all sorts of grief and conflict amongst surviving family members.

What to include in a will?

• Who will inherit your estate? (beneficiary/beneficiaries) – this list could include people or even charities. You can choose to allocate your estate by proportion or by certain assets.
• What happens if your beneficiaries pass away before you do?
• Who cares for your dependents? Declare who will be the legal guardian for your children under 21, or, if you are single without kids, who will care for your parents/pets/siblings
• Who will you appoint as your trusty Trustee? A trustee is an individual appointed to manage the money and assets on your behalf. Needless to say, it should be someone you trust who will act in your best interests. 

You may find it tricky to answer the questions above, which is understandable. Your will is changeable at any time, assuming you are of sound mind. 

What Makes a Will Legally Binding?

You must:

• Minimum ages to write a will vary depending on the country.
• Be of sound mind.
• Have signed your will in the presence of two adult witnesses.
• Have the will been signed by both witnesses?

CPF Nomination

As mentioned previously, your CPF savings are not part of your estate and are not covered by your will. If you wish to prevent your CPF savings from being distributed under Singapore's Intestate Succession Act or the Islamic inheritance law, you must make a CPF nomination. 

There is no limit to the number of beneficiaries you can name; they can be either a person or an organisation.

Like a will, your CPF nomination will state the apportion and allocation of your CPF assets between your beneficiaries. The beneficiaries can receive funds through a one-time cash payout (via cheque or GIRO) under a cash nomination, via a CPF account under the Enhanced Nomination Scheme (ENS), or through monthly payouts under the Special Needs Savings Scheme (SNSS). Like a will, your CPF nomination is changeable at any time. 

Remember that you must be 16 years old or over and be of sound mind to make a CPF nomination.

For more information on the CPF Nomination Form, click here.

YOUR WILL. COMPLETED. ✅

Sources

1. https://www.dbs.com.sg/personal/articles/nav/retirement-planning/why-lasting-power-of-attorney-is-not-just-for-the-elderly 
2. https://www.dbs.com.sg/personal/articles/nav/retirement/the-importance-of-estate-planning?pid=sg-dbs-pweb-article-why-lasting-power-of-attorney-is-not-just-for-the-elderly-textlink-part1 
3. https://www.dbs.com.sg/personal/articles/nav/retirement-planning/why-lasting-power-of-attorney-is-not-just-for-the-elderly 
4. Header Photo by Melinda Gimpel on Unsplash