On average, Singaporeans are getting richer according to an annual wealth report by the Credit Suisse Research Institute.
Singapore’s adult population has an average wealth of about US$276,885 per person, up 1.4% compared with the middle of last year.
We are top in Asia and seventh globally among major economies.
Not all of us are rich, but for those who have that much money, what happens to that money when we die? We can’t bring it with us into the coffin for sure.
Here’s where the individual will comes in.
So why should we have a will?
A few reasons. But one important reason is that wills with specific instructions can help to avoid scenarios where families go to court over inheritances.
It is important then to make a will to ensure your assets are distributed according to your wishes.
What if a person dies without a will?
Without a will, the state can direct the distribution of a deceased person’s assets according to the Intestate Succession Act.
The 9 simple rules in the act determines how the the deceased’s assets are distributed to his survivors.
| SURVIVOR | ABSENT | WHO GETS WHAT |
| Spouse | Children, parents | Spouse gets everything |
| Spouse, children | Spouse gets half, children gets the other half in equal portions | |
| Children | Spouse | Children get everything in equal portions. Grandchildren can claim their parent’s share in equal portions if their parent is dead |
| Spouse, parents | Children | Spouse gets half, parents get half in equal portions |
| Parents | Spouse, children | Parents get everything in equal portions |
| Brothers and sisters (or children of the deceased brother or sister) | Spouse, children, parents | Brothers and sisters get equal portions. Their children can claim their share for them in equal portions if they are deceased |
| Grandparents | Spouse, children, parents, brothers and sisters or children of such brothers and sisters | Grandparents take the estate in equal portions |
| Uncles and aunts | Spouse, children, parents, brothers and sisters or children of such brothers and sisters, grandparents | Uncles and aunts take the estate in equal portions |
| None | Everyone | Government takes everything |
It may sound morbid or “pantang” to talk about leaving a will when we are alive and well. But actually, having a will in place gives you the assurance that your children and your spouse will be entitled to what is rightfully theirs, according to your wishes, in the event something happens to you.
According to Zac Tay, an Estate Planner from Rockwills Singapore, there is an increasing number of young parents aged between 35 and 45 in Singapore who are already writing their wills. They are afraid that their children may not be able to cope especially if they are still young when the parents pass away. They also don’t want their children to receive a lump sum of money or assets when they may not be matured enough to handle it wisely.
Imagine if a husband and father of a family of 5 meets with a traffic accident and passes on. What happens next? With a will, his estate will be distributed according to his wishes. Without a will, the estate of the husband will be distributed according to intestate act, which will distribute 50% to his wife and 50% share to his children equally. If the child is under 18, the assets will be held under public trustee till he or she reaches 18 years old. But is 18 or 21 years of age, old enough or financially capable enough to handle and manage the wealth that you leave behind? Could a gift be a burden to your children if not planned properly?
Zac Tay added that most of the time, estate planning tends to be the least priority on a person’s mind. Time can fly by before the documents are in place. Unforeseen circumstances can occur that will cost chaos to your estate and your loved ones.
With proper estate planning, your loved ones will benefit from your inheritance. To plan your estate properly, it might be good to have a consultation with a estate planner so that you can have a peace of mind.
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