The
Following Should Answer Most Of Your Question:
1.
What if I don’t have a will?
2.
I already have a will. How often do I need it
updated?
3.
Will the will I obtain from this web site be legal?
4.
Do I need a will, even though I’m single?
5.
Should I have a will if I don’t have children?
6.
What about money in my Central Provident Fund
(CPF)?
7.
What can be done to cut costs in processing a
will?
8.
Where should I keep my will?
9.
Why is that a mistake to leave everything to your
spouse, and if the spouse dies first?
10.
Should two people be appointed as joint
guardians of my child?
11.
What is an estate?
12.
What is a codicil?
13.
What is probate?
14.
What is a trust?
15.
What is common disaster clause?
16.
What is the Intestacy Rules?
17.
Syariah Law?
18.
Who is the right person to be your Executor?
19.
Should I reward my Executor?
20.
Should everyone has an Estate Plan?
21.
Your assets held in joint tenancy?
22.
Your assets held in
tenancy-in-common?
23.
What happen to your children if both you and
your spouse die?
24.
How do I make sure my beneficiaries use their
inheritance wisely?
25.
Why is it important to start an estate plan
early?
26.
Can't my attorney take me through this
estate planning process?
27.
I am too busy to think about estate planning?
28.
How much money can it save me?
29.
I do not have an estate to worry about right
now?
30.
I do not know where to start?
31.
My family situation is too complicated and
I can't think about the estate planning right now?
32.
I cannot afford to create a Will or Living
Trust?
33.
I am young and have plenty of time to think about
this?
34.
What CPF nominations does not covered that form part
of your estate?
What
if I don't have a will?
If
you pass away without making a will, your assets will be distributed
according to the rules of intestacy as laid down in the Intestate
Succession Act. The Court will dictates how your assets will be
distributed. Your nearest relatives may get a piece of your property, but
no one else does-and no one gets more than the state-allotted share, even
if it’s unfair. Spouses usually suffer the most. According to Jane
Bryant Quinn, author of "Making the Most of Your Money"
(Prentice Hall), depending on state law, not all of the property may go to
your spouse. Your grown children may get some of the money you meant for
your spouse, leaving your spouse with too little to live on. The Court
will choose your children’s guardian. Stepchildren usually get nothing.
Your family might battle with the courts. A fight might break out among
your relatives over who get the children and who run the
inheritance.
Furthermore,
the people who look after your estate are not of your choice. The are
called "Administrators" instead of "Executors" whom
appointed by you personally although they perform a similar task.
Administrators have to apply to Court for "Letters of
Administration" and the procedure is generally more complicated and
higher cost than in the case when you have a will.
Whether
you do it yourself or with the help of financial advisers, writing a will
is key to ensuring that the people you want to leave your property to, get
it.
I
already have a will. How often do I need it updated?
Update
your will approximately every five years or to review your will every year
or two, because you might need to change it. You should consider changing
your will if you remarry, you divorce, you have a child or grandchild,
someone mentioned in the will dies, you move from state to another, or the
size of the estate has changed significantly.
Will
the will I obtain from this web site be legal?
Yes,
a will is valid if it is signed in compliance with what are called
"wills formalities". These formalities are laws governing how
many witnesses must be present when the will is signed and how those
witnesses and the will maker sign the document.
Do
I need a will, even though I’m single?
Everyone-single
or married-needs a will that explains how they want their assets
distributed when they die. A will clarifies what you want done with your
investments, personal possessions, even your pets. Even if you don’t
want to write a will for your own peace of mind, do it for your heirs. The
document will save them lots of time, legal and court expenses.
Should
I have a will if I don’t have children?
Everyone
should have a will, including you and your spouse. Believing that
everything the two of you own will pass automatically to the surviving
spouse when one of you dies is a risky proposition. Suppose that you and
your spouse bought a house or opened a brokerage account as joint tenants
several years ago, but the lender or brokerage firm fouled up and
mistakenly listed you as tenants-in-common. If you died before the mistake
was discovered, your interest in the property would not automatically pass
to your spouse. Instead, it would likely become the subject of lengthy
probate proceedings and your creditors could ask that the property be
liquidated to pay any debts that you left behind. Or, suppose you were
killed in an auto accident and the other driver’s insurance company
issued a big check to your estate. If you died without a will, the cash
would be distributed according to the state’s inheritance laws instead
of going directly to your widow. Those same inheritance laws would kick in
if you and your spouse died at the same time in a car crash or other
accident, which mean your combined assets might pass to relatives you
don’t even like.
What
about money in my Central Provident Fund (CPF)?
If
you have made a nomination under the CPF Act, your nominee shall be
entitled to the funds in your CPF account regardless of what is stated in
your Will. If you have not made a nomination, your funds will be
distributed under the law in accordance with the Intestate Succession Act,
as explained above in the paragraph What
If I Don't Have A Will?
If
you get married after making a nomination, please note that your
nomination is automatically cancelled, unless you say that it was made in
contemplation of marriage. Therefore, you ought to make a fresh nomination
after the marriage.
What
can be done to cut costs in processing a will?
The
processing or "probating" of your will can be expensive. An
executor or administrator generally receives a fee for his or her work,
which consists of identifying the assets; paying off debts, taxes and
administrative costs; and finally, disposing of the remaining assets to
the beneficiaries. Usually, an independent executor, such as a lawyer or
bank, collect between 2 percent and 5 percent of the estate’s value. If
you name a family member to be executor, he or she will usually charge far
less than an independent one or may refuse to accept a fee out of love for
the family. All fees, which can amount to thousands of dollars, are paid
by the estate. You can reduce substantially the cost of probating your
will by removing assets from your estate before your death. This can be
accomplished by giving away your assets as gifts, holding assets in joint
tenancy, entering into certain contractual arrangements, such as life
insurance or pensions, and setting up trusts. See your lawyer about these
and other estate planning tactics.
Where
should I keep my will?
After
the incident of September 11 terrorist attacks in NY City. Probably the
best place to keep the original of your will is with the Security Service
Provider that has the full facilities and solutions and not your lawyer or
to keep a copy for yourself. Click
here to register with MYJUSDE.COM and we put your name,
address and phone number on it so your survivors will know how to contact MYJUSDE.COM
when you die. You should not keep the original will at home or in a safe
that can be broken into, or destroyed by fire. Keeping the original will
in a bank safe deposit box is OK (not recommended), but only if your
survivors could get to it quickly when you die. Access policies differ
from one bank to the next. A survivor can get immediate access if his or
her name is on the box rental agreement. If it’s not, the bank may not
open it until a tax agent show up or a court order is presented, either of
which could take weeks or even months. An alternative would be to store
the original in a safe deposit box held by your executor. The catch: If
the executor dies before you do, you’ll have to start looking for a
place to store it all over again.
Why
is that a mistake to leave everything to your spouse,
and if spouse die first?
Many
married couples write a "Simple Will" that leaves
everything to their spouse or, if the spouse dies first, leaves everything
to their children. Unfortunately, such a will can cause huge problems
later. For example, say Mike and June have two children. Mike dies,
leaving everything to June. June later marries Paul, a widower with three
children of his own. Then June dies, leaving everything to Paul. All of
Mike's assets now belong to Paul, a guy he never met, and Mike's children
get nothing. And when Paul dies, Paul's own children will inherit his
assets -- which would now include everything that Mike and June had spent
their whole lives working for.
Should
two people be appointed as joint guardians of my
child?
It’s
perfectly legal to name a couple as guardians of your child (minor
children that under 18’s), but some lawyers and financial experts
suggest you name one particular individual instead. Why? "Because
couples get divorced, or they can’t agree on how to raise the
kids," according to The Five-Minute Lawyer’s Guide to Estate
Planning (Dell Publishing, New York). "Name the person you want, the
one you most trust to make the right decisions, and then the couple can
work out their respective roles between them." And, of course, to
provide the financial means for them to take care of your children.
What
is an estate?
Everything
you own - CPF account, bank accounts, savings, house, investment
portfolios (CPF or Cash), life insurance, personal property and retirement
plans.
What
is a codicil?
An
amendment to a will is called a codicil. You must formally execute a
codicil before witnesses, using the same formalities as when executing the
will itself. If you undergo a major life change, such as divorce,
remarriage, having more children, and so on, you may require the writing
of a whole new will by executing a new will that states it revokes the old
one.
What
is probate?
Any
property that is transferred by will is subject to probate, which is the
legal process of verifying your will through the courts. Probate can be
slow and costly. That’s why many people choose to create a living trust
to convey most of their property to their loved ones. Forming a living
trust makes sense for just about everyone, but it’s important to realize
that it does not prevent probate-it only speed up the probate process. You
still need a will that names an executor for your estate and a guardian
for any minor children. All wills must go through probate.
What
is a trust?
A
testator could name trustees in the will to hold his/her properties in
trust for the benefit of his/her beneficiaries. These are particularly
important if they are minors or dependants with long term special needs.
Such trust would only take effect upon the death of the testator and not
before. During his lifetime, he/she could change the content or
instructions of the will as often as he/she likes.
What
is common disaster clause?
In
the event of both husband and wife perish together, and the times of death
could not be established, the older person would be deemed to have died
first (usually the older person was a man.) His estate would be subject to
estate duty before passing on to his wife (spouse.) What happens if the
wife, after inherited part or all of the husband's estate? Her estate
which now includes the husband's, would be estate dutiable. The wife's
share in the husband's estate (partly or all) would be subject to estate
duty twice. To avoid paying twice the estate duty, it is advisable to
include a common disaster clause in the will.
What
is Intestacy Rules?
Failure
to leave behind a will if a person dies, the Court will decide the
distribution of your estate determined by the Intestate Laws. In other
words, the Court will have the final say of who gets what. Under the Intestate
Laws (PDF), half the estate went to the wife and rest to his
children but nothing was left to his mother... more.
Syariah
Law?
Some
of the provisions mentioned above do not apply to a Muslim. Generally,
Muslims can only dispose off or give away 1/3 of his estate.
But the giving away of 1/3 of the estate has to be with the
consent of Islamic heirs of the deceased. Under S115(1) of the
Administration of Muslim Law Act, 1985, the beneficiaries are bound to
apply to the President of the Syariah
Court for an Inheritance Certificate to establish the share of
each beneficiary.
Who
is the right person to be your Executor?
Naming
your spouse as the executor is usually a good idea, but you'll want to
consider a few things. Your spouse already will be emotionally drained
upon your death. Taking on the role of executor may be too much of a
burden. If your spouse is not financially astute, he or she may be
susceptible to an unscrupulous relative or other people offering to take
care of the estate for huge fees.
If
you're not married or you don't want to name your spouse as executor, you
can choose a relative you trust, a friend or a professional associate.
Should
I reward my Executor?
Consider
the executor that controls your estate from the time you die until the
last estate duties or tax returns have been filed and all your assets have
been distributed to your beneficiaries. It is this person who ensures that
what you wanted -- and whom you wanted to get it -- happens.
An
executor's job is not a glamorous role. It's typically unappreciated by
other family members and involves tedious work with few obvious rewards.
He or she has to set up the estate with the respective government
department, get a tax identification number, and file estate and income
taxes until the estate is settled and closed.
The
executor also has to figure out every asset in your estate and the amount
of any debts you owe.
“Every
asset” does not mean just what is in your probate estate. It also means
your retirement plans, insurance policies and anywhere else you may have
squirreled away a few dollars.
There
is an enormous amount of time and energy required should be compensated in
some way, especially if it's one of your children and the others are not
spending much time on the estate. You can specify using the standard
executor fee rates, or you can name any rate you want as long as the Court
considers it reasonable. By paying the relative who's acting as executor,
you reduce that person's resentment for having to do all the work while
reducing any guilt feelings among other family members for not being
involved.
Should
everyone has an Estate plan?
Everyone
should has an estate plan, whether intentional or by default. If you think
you have no plan, because you have not made out a will or a trust, you
still have a plan--it is simply one that is dictated by the laws of the
state where you reside at your death. People who die without wills or
trusts are said to die Intestate. State law provides the rules of
distribution that must be followed when a person dies Intestate.
In most cases Intestate estates must be probated, which involves a
court proceeding, and in many cases state law may require a distribution
that you would not want. It is a very good idea to avoid intestacy by
having a will or a "living trust" that is designed for your
particular needs.
Your
assets held in Joint-Tenancy?
A
joint tenancy exists where two or more persons own a single property
together. On the death of a joint owner, that owner's right is
extinguished and the property vests in the surviving owner or
owners.
No
joint owner could, before March 1, 1994, dispose of an interest in a
property to others by Will. However, with effect from March 1 1994, a
joint tenant may now sever the joint tenancy by Will.
If
you have an estate plan and your assets are held in joint tenancy. For
many people put their assets in joint tenancy for the purpose of avoiding
probate. What people do not understand is that joint tenancy only avoids
probate when there is a surviving joint tenant. In other words, joint
tenancy does not avoid probate all together--it only delays it.
When
the last former joint tenant dies, the property will be probated, unless
it has been transferred to a trust. The joint tenancy form of ownership
may also have many unintended and unfavorable consequences. For example,
if a person places a home in joint tenancy with a son or daughter the entire
property is usually subject to attachment by a creditor of any one of the
joint tenants.
Another
problem with joint tenancy is that once the asset that is held in joint
tenancy passes to the surviving joint tenant he or she owns the property
outright. Once again the property is subject to attachment by that
person's creditors. Also, the survivor has absolute control over the
property. If the surviving joint tenant is a surviving spouse who
remarries, it is quite possible that the property may never end up in the
hands of the decedent's children. There are also significant estate, gift,
and income tax problems that can arise from joint tenancy. Holding
property in joint tenancy usually has unintended bad results.
Your
assets held in Tenancy-in-Common?
Under
a tenancy-in-common, each co-owner holds a separate and definite share in
the property but all of the co-owners can enjoy the whole flat regardless
of the share they hold in the property.
The
rule of survivorship does not apply to a tenancy-in-common. Upon
the death of a co-owner, the deceased owner's share passes to the persons
named in their Will, or if there is no Will, then to their heirs according
to the Intestacy Laws.
What
happen to your children if both you and your spouse die?
Under
the state/country Law, any minor children -- children who are under age 18
or 21, depending on the state/country -- can't make their own own
decisions about major matters such as their schooling and healthcare, and
generally need adult guidance and supervision. A Will provides you with a
legal vehicle for designating the adult you want to raise your kids and
make important decisions for them should both you and your spouse die
pre-maturely.
This person is called a personal guardian.
How
do I make sure my beneficiaries use their inheritance wisely?
If
you have a concern over your beneficiaries, and to insure that an
inheritance is used wisely, set up a trust in your will (called a Testamentary
Trust). Trusts are popular among people with beneficiaries who
aren’t able to manage property well. This includes elderly beneficiaries
with special needs or a relative who may be untrustworthy with money or
minor children or dependent siblings or adults. It may be a good idea to
require such beneficiaries to obtain money from a trustee who would
exercise discretion about how to distribute it, instead of giving the
money outright in your will. It’s a trust in which your instructions to
the trustee carefully control how much money is released from the trust
and at what intervals, so you can keep an irresponsible beneficiary from
getting thousands of dollars in one stroke.
Why
is it important to start an estate plan early?
Death.
Disability. Incapacity. These
are the "facts of our life"
At
any age, death, disability and incapacity are realities of life that
should be strategically planned for or at least thought about. As we age,
the need for such planning becomes increasingly more important and
urgent.
The
distribution of your wealth, of your personal estate after you die is not
something you should leave to chance.
How
long will you wait? And, what are you waiting for?
Can't
my attorney take me through this estate planning process?
How
many attorneys do you know that REALLY specialize in estate planning...
there aren't many you can find.
Many
attorneys have to work in many fields of interest and do charge a
respectable amount per hour ranging between $150~$250 per hour. However,
your attorney may or may not be qualified to prepare your will or trust
that meet your specific needs or family interest... especially if you do
ask for a low cost type of simple will done for you. And you may
not find your current attorney willing to invest his or her time to help
you figure it out or if you will to ask for free advice.
I
am too busy to think about estate planning?
Yes,
it does take time and need you to set your own priority now, but it also
takes more time and money for your spouse and children if you do not
invest the time now!
How
much money can it save me?
We
cannot answer that question. We have had many customers write to us and
say that they can saved a few hundred dollars up to a few thousand. This
was as a results of their being able to avoid paying professional
consultation and advice charges.
I
do not have an estate to worry about right now?
If
you do think that you do not have an estate, you may want to think again.
Your estate consists of all property or interest in property that you own,
both real and personal. If you own anything, it has to go to someone, it
is never too early to think about it now.
I
do not know where to start?
Most
people don't so do not feel bad. That is a good reason why you can call us
to find out more... you will be given a FREE consultation at no
charge.
My
family situation is too complicated and I can't think about the estate
planning right now?
If
your family circumstances are complicated, this might be the right time to
start planning. Think about it, if you die with the current situation you
have, what do you think would happen?
Any
attempt on your part is better than no attempt at all. Call
us, we may even ask questions that will help you solve your
problem(s).
I
cannot afford to create a Will or Living Trust?
That's
fair. However, you cannot afford not to think about it. Even Public
Trustee do charge a statutory fee for an estate below $50,000. And it is a
lot more expensive than writing a Will.
I
am young and have plenty of time to think about this?
The
reason why most people say that is because they are not sure what to do
and what will cost them. Jus de Associates will help you plan and will
show you how to understand and perform your estate plan.
What
CPF nominations does not covered that form part of your estate?
(a)
All cash and investments held in the CPF Investment Account under the CPF
Investment Scheme - Ordinary Account (CPFIS-OA).
(b)
All investments held under the CPF Investments Account under the CPF
Investment Scheme - Special Account (CPFIS-SA), except for fixed deposits
which will liquidated and returned to the Special Account to form part of
CPF savings covered under the CPF nominations.
(c)
New Singapore Shares (NSS).
(d)
Properties bought with CPF savings.
(e)
Shares bought under the DelGro Shares Scheme.
