What is a Will?

A will is a legal document that becomes effective upon the demise of the person who made the will. It dictates how your estate is to be distributed when you are no longer around. Without a will, your estate will be distributed according to the Intestate Succession Act in Singapore.

Here are some advantages of having a well-drafted will:

• Estate will be distributed in accordance to your own wishes
• Guardians of your choice can be appointed if beneficiaries are minor
• The arduous process of applying for a grant of probate can be avoided
• Reduce the chances of family disputes if done correctly

 

Potential pitfalls when writing a will

Drafting a will is never an easy task. Here are some common pitfalls people make while crafting a will:

• Assuming that your current assets will be the same when you pass on. This might not necessarily be true.
• Presuming that your appointed executor would willingly take on the role
• Allowing beneficiaries to inherit a sum of money when they might not be able to manage these monies prudently
• Equally distributing the estate, thinking it's a fair distribution when it might not be so
• Failing to understand the difference between gifting the asset and the ownership of the asset

 

What is a Trust?

A trust, more specifically a testamentary trust, usually accompanies a will and is created to provide legal protection for the trustor's assets. It can be used to ensure that funds are used for a certain cause. The truster (usually the same person who crafts the will) gives another party, the trustee (can be an individual or organisation), the right to hold the legal title to property and/ or assets for the benefit of a third party namely the beneficiaries.

Some advantages of having a trust are:

• Helps reduce conflict among beneficiaries
• Protects the assets against creditor
• Prevents assets from being utilised in ways against trustor's wishes
• Protect vulnerable beneficiaries from undue influence
• Coming up with a comprehensive will and trust is part /of preserving your legacy.

Equipped with the relevant skills needed, our Estate And Succession Practitioners on our team would be sure to provide you with useful advice on how you could leave a lasting legacy beyond your own demise.

Click here to find out some of the pitfalls people make when drafting wills so as to avoid them!