Writing a will is essential especially if you have children or elderly dependents. With a will, you can determine how much of your assets can go to your delegated beneficiary of choice and make sure that your loved ones are well taken care of even after you have passed.

Despite its importance, it is estimated that no more than 10 to 15 percent of Singaporeans have made wills. Dying without a will means to die “intestate.” It usually refers to a case whereby the deceased has not properly distributed his assets to his family members.

When this happens, the Singapore government will make the decision for you and distribute your assets through the Intestate Succession Act. The Act determines things like who should get your assets, estate and the amount to be distributed.

Who can write a will?

As long as you are 21 years old and above, you are eligible to write a will. You will have to sign at the bottom of the will, and your signature has to be witnessed by at least two witnesses. Witnesses cannot be a beneficiary, and your witnesses are required to sign on the will as well.

You also do not require a lawyer to write a will.

Who gets to distribute my assets?

Assets refer to items such as the amount of money in your bank account, any insurance plans that you own, income tax, cars as well as properties.

Right after you have passed, your assets would be frozen, which means that they are untouchable.

Your next-of-kin can apply for a Grant of Letters of Administration in order to get access to your assets. Once approved, your next-of-kin acts as an administrator of your assets. He/she can help to collate all the assets that you have, pay off any outstanding debts and distribute the rest to beneficiaries.

Your next-of-kin does not get to decide who gets what amount, but rather acts as a moderator of your assets. The proper distribution of your assets will still be done according to the Intestate Succession Act.

If you are planning to write a will early in life, adding in a residuary clause is also recommended. A residuary clause is basically an instruction for any other assets that you may acquire from the time the will was created. You can choose to give all the balance assets to a beneficiary, so that you do not have to rewrite your will every time you obtain a new asset.

Why should I write a will?

A will allows you to distribute your assets to your beneficiaries as per your wishes.  It can also prevent any conflict that may arise among your loved ones over the splitting of your assets.

If you have spent a good part of your life putting money into a life insurance plan or a retirement plan that offers death benefits, your money may go to the government instead if there is no proper will or nomination put in place. 

A nomination is the act of choosing who can receive the amount from your insurance plan in the event of death or permanent disability.

If the nominees of your insurance policies are the same as the beneficiaries of your will, listing your insurance policies in your will may make it easier for them to find information on the policy, and contact the correct insurance company upon your death.

It pays to be safe than sorry. Drafting a will should not be seen as a taboo or something to be done when we are older. If you are interested in making a will, there are online will makers that you can use to help you when drafting your own will.

Disclaimer:

This article is for general information only and does not take into account the specific investment objectives, financial situation or needs of any particular person. The views expressed herein do not necessarily reflect the views of AXA Insurance Pte Ltd and should not be construed as the provision of advice or making of any recommendation. There is no intention to distribute, or offer to sell, or solicit any offer to purchase any product. We recommend that you seek the advice of a qualified financial advisory professional before making any decision to purchase an insurance or investment product. Whilst we have taken reasonable care to ensure that all information provided was obtained from reliable sources and correct at time of publishing, information may become outdated and opinions may change. We are not liable for any loss that may result from the access or use of the information herein provided.