8 Reasons to Make a Will
A Will is a legal document that outlines your wishes for how your loved ones (eg. your minor children) can be taken care of and how your estate should be handled after your death.
If you pass away without a will, the rules of intestacy will apply, and your wishes might not be honored. Your children may also be left without a suitable legal guardian to care for them.
Creating a will offers several important benefits that can help ensure your wishes are respected and that your loved ones are cared for according to your preferences.
Here are some key benefits:
Clarity and Certainty
: A will provides clear instructions on how your assets should be distributed, reducing the likelihood of disputes among family members and loved ones. It ensures that your estate is handled according to your wishes.
Appointing Guardians for Minor Children
: If you have children under 21, a will allows you to designate a legal guardian to care for them, if both parents pass away. This can provide peace of mind knowing that your children will be provided for and cared for by someone you trust.
Executor of Your Choice
: In a will, you can appoint an executor to manage your estate. This person will be responsible for ensuring that your assets are distributed according to your instructions, paying off any debts, and handling any other administrative tasks.
Protection for Beneficiaries
: You can make specific provisions for beneficiaries, including setting up trusts to manage assets for young or vulnerable individuals, ensuring they receive support in a structured way.
Minimizing Legal Complications
: Without a will, your estate will be distributed according to Singapore’s Intestate Succession Act, which might not reflect or align with your personal wishes. A well-drafted will can help avoid legal complexities and potential conflicts among beneficiaries.
Flexibility in Asset Distribution
: A will allows you to specify how your assets should be divided among your beneficiaries. You can leave specific items or amounts to individuals or organizations, such as charities, which might not be otherwise possible if you die intestate.
Provision for Non-Family Members
: If you wish to leave assets to friends, distant relatives, or organizations outside your immediate family, a will is essential. Without one, these individuals or entities might not receive anything from your estate.
Peace of Mind
: Knowing that your affairs are in order and that your loved ones will be taken care of according to your wishes can provide significant peace of mind.
Read more: Can an Executor of a Will Be Forced to Execute the Will by a Judge?
Case Study: The Importance of Having a Will – The Tan Family
Background
Mr. Tan was a successful businessman in Singapore, that owned multiple properties, investments, and ran a thriving business. He was married with two young children. Despite his busy schedule, Mr. Tan did not draft a will, as he had assumed that his assets would automatically be passed on to his family in the event of his death.
The Unexpected Event
Tragically, Mr. Tan passed away suddenly in a car accident. With no will in place, his family was left to navigate the complex process of distributing his estate according to Singapore’s intestacy laws.
The Consequences of Intestacy
Under the Intestate Succession Act, Mrs. Tan was entitled to half of her husband’s estate, while the remaining half was to be divided equally between their two children.
However, several issues arose:
Distribution of Business Interests
: Mr. Tan’s business was thriving, but without a will, there was no clear plan for its succession. The business assets had to be divided among Mrs. Tan and the children, which caused complications in the management and continuity of the company.
Guardianship Concerns
: Mr. Tan’s children were both under the age of 21. With no will in place, the court had to appoint a suitable legal guardian to care for the children, together with Mrs Tan. This process was lengthy and caused additional unnecessary stress for Mrs. Tan, who was already grieving.
Family Disputes
: The division of Mr. Tan’s estate led to disagreements among extended family members, particularly regarding the properties. The lack of clear instructions about how Mr Tan wished for these properties to be dealt with, resulted in significant delays and increased legal costs, putting further strain on Mrs. Tan and her children.
Increased Financial and Emotional Burden
: The absence of a will meant that Mrs. Tan had to spend significant time and money on legal fees to settle the estate. The emotional toll on the family was substantial, as they had to deal with legal complications on top of their loss.
Conclusion
This case study underscores the importance of having a will in Singapore. A will not only ensures that your estate is distributed according to your wishes but also provides much-needed protection and peace of mind for your loved ones. By taking the time to draft a will, individuals can avoid unnecessary complications and ensure that their family is cared for in the event of their unforeseen passing.
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