From The Straits Times    |

By Pamela Yeo, contributing writer for Get.com

Nobody likes thinking about death or illnesses. Yet it is something that we Singaporeans should all plan for, especially when it comes to managing our savings, because we need the assurance that we have done our best to provide for our loved ones when we are gone. As such, we are all strongly encouraged to make a will, which specifies how you wish to distribute your savings and assets.

A will is a written, legal document that sets out how a person’s estate (all your money and assets) should be distributed to beneficiaries after his/her death. A will also appoints an executor, that is, somebody who will administer the will and distribute the estate after the person’s death. Here are three important things you should know about making a will.

If you don’t make a will, you can’t control the distribution of your estate
The two main implications of not making a will are:
No choice over who administers the estate: If a person passes away without having made a will, the court has to power to appoint the administrator(s), usually the next-of-kin, to distribute the person’s assets.

No choice of over the distribution of assets to loved ones: The distribution of assets is made according to certain fixed rules under the Intestate Succession Act (for non-Muslims), or the Certificate of Inheritance issued by the Syariah Court (for Muslims).

Take for instance a person who passes away and leaves behind a spouse, children, and two parents. Under the rules of the Intestate Succession Act, half of his assets will go to the spouse, and the other half will be split equally among the children. The parents will not receive anything. If these rules are not aligned with how you want to provide for your family, you should certainly consider making a will.

You don’t actually need to consult a lawyer, but maybe you should
You can actually write out your own will, as long as you are at least 21 years old and of sound mind. But there is a risk in doing so.

For instance, if the writing is not clear, it could lead to future disputes over what could have been the actual intended meaning. In the worst-case scenario, the will could be invalid, and this could cause confusion resulting in unnecessary expenses for the beneficiaries.

So you have to balance between the cost of consulting a lawyer to write your will, and the risk that a self-written will could be challenged or ineffective.

Either way, remember to regularly review and update your will, especially after major life events such as marriage, or the birth of a child / grandchild.

Your will does not cover the distribution of your CPF savings
Take note that even if you make a will, it does not apply to the distribution of your CPF savings. You have a make a separate CPF nomination for that.

If a person passes away without making a CPF nomination, CPF Board will pass his CPF savings to the Public Trustee, who then distributes the assets to the next of kin in accordance with the Intestate Succession Act (for non-Muslims) or Certificate of Inheritance (for Muslims).

But at least you don’t need a lawyer to make a CPF nomination, and there is no fee to do so. You can either mail a nomination form to CPF Board or fill one out in person at their service centre.

This article was originally on GET.com at: Making A Will: 3 Things You Must Know

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