Frequent Ask Question
Will
A Will is a legally binding document in which an individual states his or her wishes regarding the distribution of their estate after their passing.
Making a Will ensures that upon your death, your assets will go to the people of your choice. If you die without having written a Will, also known as dying intestate, the state will decide how your assets will be distributed, which may not be what you want.
- It must be made by a person who is at least 18 years old
- It must be made by a person who is of sound mind
- It must be made voluntarily and without pressure from any other person
- It must be signed by:
- the person making the will in the presence of two witnesses
- the two witnesses in the presence of the person making the will
Note: A beneficiary or spouse should not be a witness to your Will.
If you die intestate, your assets will be distributed according to the Distribution Act 1958, which divides your assets according to a fixed proportion based on whether you leave behind a spouse, children and/or parents. Such distribution may not be to your liking. Also, the time taken to obtain letters of administration to administer an estate without a Will is considerably longer than obtaining a probate when there is a Will.
In essence, you can designate ANYONE to be the beneficiary of your Will, including:
- Individuals regardless of their relationship to you
- The Executor of your Will
- A mentally disabled person (an appointed Guardian or an Attorney is required)
- Children below the age of 18 years (an appointed Guardian is required)
However, there are exceptions:
- Individuals with active bankruptcy status
- Witnesses to your Will
- Immediate family members of the Witness
The witness to your Will must meet the following criteria:
- He/she is not a beneficiary.
- He/she is not an immediate family member of the beneficiary.
- He/she must be aged 18 years old or above.
- He/she must be of sound mind.
- He/she is a third party to the testator (for example: friends, Will Writer).
Yes, you can revoke your Will at any time. A Will will be revoked automatically under the following conditions:
- when you write a new Will.
- when you get married or remarried.
- when the original Will is destroyed.
- When you voluntarily revoke the Will in writing, witnessed by 2 individuals.
Note: If you get divorced but do not remarry, your Will remains effective and un-revoked.
Yes, only the movable assets in a foreign country. The immovable assets will follow the law of the country where the property is situated and it may be advisable to write a separate Will for the specific immovable assets in that foreign country.
No. A beneficiary or his/her spouse must not be a witness. If he/she does, then he/she will lose his/her share in the Will. However, this will not affect the validity of the Will.
Trust
A Trust is a financial arrangement made between three parties;
- The party that creates the Trust – known as the Settlor – which could be an individual, a couple, a group of people, a company or a legal entity of some kind.
- The party that administers the Trust – known as the Trustee – which could be an individual, a couple, a group of people, a company or a legal entity of some kind.
- The Beneficiary or Beneficiaries of the Trust who receive the benefits of the property and/or money titled in the name of the trust.
Essentially, the Settlor transfers ownership of property and/or money to the Trust and the Trustee who then manages those assets for the benefit of the Beneficiary or Beneficiaries, as directed by the terms of the Trust, which are dictated by the Settlor.
Trust is useful when you have:-
- Minor children and spouse who is a homemaker or who is not the main bread winner.
- Special children requiring funds for medical, education and living expenses.
- A second family to provide for.
- To finance children’s tertiary education.
Trust ca be use for the purpose of :
- Quick distribution of assets (The money in the Trust can immediately be used to provide for the dependant as Trust assets are not part of the Testator’s estate
- Maintenance, education and medical funding of your dependants (effective immediately upon happening of certain triggering events eg. Death and TPD;
- Preservation of estate (eg. Prevent sale or delay inheritance until certain conditions has been met);
- Protection against spendthrift beneficiaries;
- Protection against Settlor’s creditors (provided that it is not against public policy);
- Protection against Beneficiary’s creditors;
- Protection against from claims in a Divorce (provided that it is not against public policy);
- Protection of the value of a business upon the death of business partner;
- Provision for second family or various families confidentially;
- Maintenance and medical funding of old age Single person (Settlor can be the beneficiary during his/her lifetime);
- Preservation of wealth for 3 generations or more;
- Family Business Succession;
- Charitable purposes;
Holding real properties for association or religious organisation; and etc.
One of the main benefits a Trust comes in to play when you want make sure that your beneficiaries receive their inheritance quickly.
The process of probate can easily take a year, or more, before the proceeds get distributed to the beneficiaries, particularly where there is property to be sold. Assets held in a Trust bypass that process, completely, and typically get passed on to the beneficiaries in around two weeks, which is a great reason to use one.
Yes, Any individual, including the Settlor, can be designated as the Beneficiary(ies) in a Trust.
As the Settlor of a revocable Trust, you have the power to revoke, amend, or modify its terms at your discretion
No. A beneficiary or his/her spouse must not be a witness. If he/she does, then he/she will lose his/her share in the Will. However, this will not affect the validity of the Will.
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