What is a Will and Why you should have a Will?

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What is a Will?

In Singapore, Wills are governed under the Wills Act 1938. A Will is a legally binding document that outlines a person’s instructions and wishes as to how their assets and affairs should be managed after their death. It allows the person (called the testator) to specify who will inherit their assets, and who will carry out their wishes (called the executor). A Will can include instructions about distributing money, property, personal belongings, and even funeral preferences.

A Will is validly created when the following requirements are met:

  1. The testator must be at least 21 years old.
  2. The testator must be of sound mind, meaning they understand what a will is and the effects of making one.
  3. The Will must be in writing.
  4. The Will must be signed by the testator in the presence of two witnesses, who must also sign the Will.
What happens if you do not have a Will?

If someone passes away without a valid Will in Singapore, the deceased’s assets will be distributed in accordance with the Intestate Succession Act 1967. This law applies a default formula to divide their estate among surviving family members. While this might seem straightforward, the distribution may not reflect the deceased’s personal wishes or family dynamics.

Complications can also arise if the deceased’s loved ones are unaware of all the assets they own. Without a clear record, additional time and resources uncovering overlooked or undisclosed assets may be required. Below further lists some key reasons as to why one should have a Will.

Why you should have a Will
  1. Consolidation of assets
    A person can own different types of assets, and a Will helps to consolidate and list them in one document for the benefit of their named beneficiaries after their death.

    In Singapore, property ownership is common, and with rising property prices, a HDB flat holds significant value. Whether you intend to sell the property or pass it down, it remains a substantial asset. It is one that could benefit future generations for decades, or even longer, depending on the lease.

    Individuals also often hold other assets such as bank accounts, investments, and digital holdings. Some may have just one or two simple accounts, while others manage multiple accounts across different banks or maintain a diverse investment portfolio. In some cases, individuals also hold overseas accounts, which can further complicate estate matters. With the growing popularity of cryptocurrencies and other digital assets, the need for a Will becomes even more crucial. These assets may be overlooked or inaccessible if not clearly accounted for, but they could hold considerable value in the future.

    Without a Will, a deceased’s estate could become tangled for months or even years due to administrative delays. Thus, a Will would help to consolidate a list of assets for the executors to act quickly and efficiently, reducing unnecessary stress from the deceased’s family.

  2. Distribution of assets
    When it comes to the distribution of assets, the Will plays a critical role in ensuring that one’s intentions are clearly laid out. One of which is the appointment of an executor. This role carries significant responsibility and often involves complex tasks that require honesty, organisation, and good judgment. Choosing a trusted person ensures that the testator’s estate is handled efficiently and in accordance with their instructions. A reliable executor can also help prevent conflicts among family members while maintaining transparency throughout the process.

    A well-drafted Will should also specify exactly how one’s assets are to be distributed, clearly naming their chosen beneficiaries and detailing what each individual is entitled to receive. For instance, one may wish to leave their home to one child, specific heirlooms or jewellery to another, and divide the remaining savings or investments equally among their grandchildren. You can also make special provisions for minor beneficiaries who are not yet able to manage their own assets. Additionally, beneficiaries are not limited to family members. One may choose to leave part of their estate to lifelong friends, charitable organisations, or religious institutions. These options and the control offered over one’s assets are only available if they has a Will in place.

  3. Prevents complications which may arise due to old age
    Having a Will done up early in life is important because it ensures that one’s wishes are legally documented while they are of sound mind, helping to prevent future disputes or invalidation due to mental illnesses. If a person waits until their mental capacity is in question due to conditions like dementia, Alzheimer’s, or other cognitive impairments, their ability to make legally binding decisions can be challenged. This may lead to the Will being contested or deemed invalid in court. By drafting a Will early, one safeguard their intentions and provide clarity and protection for their loved ones, minimising legal complications down the line.
Conclusion
Knowing that your affairs are in order gives you peace of mind. For your family, a clear and legally valid Will prevents unnecessary confusion, potential conflict, and costly legal battles. Additionally, the Will may also provide for funeral arrangements which also helps your family through their grief. Wills can be written quite affordably and do not need to be filed with the government until death. Furthermore, in Singapore’s fast-paced environment, where family and financial responsibilities evolve rapidly, early estate planning is not only wise but also essential. Thus, creating a Will is a responsible and thoughtful step, no matter your stage in life.

If you require any assistance in drafting a Will, you may contact our team at:

Geralyn Danker, Director