Many people assume that only old people usually need a will agreement. The truth is that dying “intestate,” or without a will, can put your loved ones through stress and other complications. Without a clear intention of your wishes, Singapore’s intestate succession laws will determine what happens to your estate. If you die in Singapore, what happens if you pass away without a will? Let’s find out.
Understanding Intestacy in Singapore.
When a person dies without a will, the Intestate Succession Act will kick in. This law helps to decide who gets what from the property of the dead. It applies to Singapore citizen and permanent resident non-Muslims only, since Muslims operate under a different set of rules as per Syariah law.
If you die without a will, your estate won’t go directly to someone of your choice. Rather, it is allotted by a fixed legal formula. Sometimes results can turn out differently from what you had planned.
Who Gets What: The Legal Formula.
If you die without making an effective will, your estate will be distributed to your family members.
1. If there are no children or parents, the spouse gets the whole estate.
2. The spouse will get 50% and the children will share the other 50%.
3. Children get everything, divided equally.
4. Spouse and parents (no children): The spouse and parents each receive 50%.
5. This is delivered to the parents, equally distributed.
6. If you do not have a spouse, children or parent, then your estate will go to your siblings, grandparents, aunts, uncles, etc., depending on who outlives you.
If there are no legal heirs, your estate will go to the government of Singapore.
What Happens to Jointly Owned Property?
Jointly owned property can complicate matters. In Singapore, if both you and your spouse own your home under joint tenancy, your home will pass automatically to the surviving joint owner upon your death. This is called the right of survivorship. If you hold the property as tenant-in-common, your share forms part of your estate and your share will be distributed under the intestacy rules.
Often, joint accounts have similar survivorship rules like bank accounts. However, personal belongings, individual accounts’ savings, and investments do not (belong to common pool) These assets will go through the intestate process.
Who Manages Your Estate?
If you die intestate, someone needs to take care of your estate. The application for the Grant of Letters of Administration shall be made to the Family Justice Courts by that person. This form allows them to receive and distribute your assets.
Usually, the spouse gets priority followed by children, parents and then siblings. The person in charge of your estate, known as the administrator, has certain duties according to law and must distribute your property fairly.
If no executor is named, the set-process may take longer if there is a dispute or hard to find suitable administrators.
Why Not Having a Will Can Be Risky.
Dying without a will can have many unintended consequences.
– Involve time to access the accounts, sell the assets.
– Disagreements among families over property allocation.
– It is an unfair distribution if your loved ones are not considered next-of-kin legally.
– It’s a botheration for those remaining behind who must approach the court.
A will lets you appoint guardians for minor children; intestacy laws do not provide for this option.
Take Control with a Will.
With a will, you may freely decide what happens to your property after death. You can appoint the heir, decide how much he/she receives and when. You can also decide who will manage your estate and who will care for your children if they are underage.
A simple will is not difficult or expensive to create. Seek the assistance of a lawyer or a will-writing service to ensure it’s a valid document.
Conclusion.
Your estate will be distributed in accordance with the state laws in the absence of a will. Intestate succession laws provide for a systematic way of dividing your estate. However, they may not reflect your relationships or preferences. A will can be one of the most thoughtful things one can do for one’s family members. It gives you peace of mind, protects your assets, and prevents extra stress in an already hard time.
Take the first step today. Contact me for a qualified estate planner or legal professional to draft your will and safeguard your family’s future.
