Are you working hard for the future of your loved ones? With that, it is important to ensure that your loved ones will benefit from the fruits of your hard work even after passing. A Financial Will is a legal document that distributes your assets and properties to your loved ones, ensuring a future for those you will leave behind. With this being said, what should you actually put on your will? You can find out from this article as we explain the necessary details, so read on ahead!
What Assets is Covered in a Will?
I. List of Assets and Ownership Structures
The primary categories of assets to consider are:
Movable: These assets are those that can be physically moved and are not fixed to one location. Examples include cash and bank accounts, stocks and bonds, vehicles, jewellery, and personal belongings such as furniture, electronics, and art collections.
Immovable: These assets are fixed to one location and cannot be moved. These include real estate properties such as houses, land, and commercial buildings, as well as fixtures permanently attached to real property, like built-in appliances or structures.
II. Ownership Type and Its Significance
It is important to note that the nature of your ownership or interest in each asset plays a crucial role. For instance, the distinction between co-ownership with your spouse in an HDB flat and sole ownership is significant. Legally, there are different forms of co-ownership, such as Joint Tenancy and Tenancy in Common.
Joint Tenancy: Co-owners under Joint Tenancy hold a unique ownership structure. Each co-owner possesses the legal right to the entirety of the property ("individually entitled to the whole property"). In essence, each co-owner has a 100% ownership interest.
Tenancy in Common: Ownership under Tenancy in Common differs from Joint Tenancy. Co-owners under Tenancy in Common hold distinct, quantifiable shares in the property (although the land itself remains physically undivided).
This distinction holds significant legal weight. Joint Tenants cannot typically include their interest in the property within their Will due to the concept of "Right of Survivorship." Upon the death of a Joint Tenant, their ownership interest automatically transfers to the remaining Joint Tenant(s).
III. Transferring Ownership Interest
If you desire to transfer your share of the property to someone outside the existing group of Joint Tenants, specific legal procedures must be followed. This process, known as "Severance," converts the ownership structure from Joint Tenancy to Tenancy in Common. Once converted, you can then include your specific share of the property within your Will.
Essential Elements of a Financial Will
Legal Parameters
The testator must be at least 21 years old and be mentally stable to ensure that they understand everything that they are doing in creating a Will and that they are not under the influence of any drugs or pressure from anyone.
The Financial Will must be written by hand and is signed by at the end of writing the Will and tampering with the already signed document is no longer allowed. Any written information after the signature will hold no legal binding at all.
Two Witnesses Who Are Not Beneficiaries
Two witnesses who are not beneficiaries should be present during the signing of the document to ensure that the testator is mentally stable during the signing and is not pushed into signing the document. The two witnesses should also sign the will in the presence of the testator and each other.
List of Assets
We recommend that clients should avoid listing a complete inventory of their assets. Instead, we suggest maintaining an updated list to share periodically with their executor. When considering what assets are covered in a Will, they generally fall into immovable and movable assets categories. However, it is important to note that certain items, such as joint accounts, joint assets, and CPF (Central Provident Fund), are not included.
Beneficiary
These are the people listed to receive a part of the testator’s assets. They usually are family or close friends of the testator. The names that are listed as the beneficiaries are not allowed to influence the Testator in any way at the time that the Will is being constructed.
Executor
This is a person (or numerous people) who will carry out and execute what was written in the Financial Will. This person is the one to ensure that the instructions are upheld and followed faithfully.
The executor is responsible for the distribution of assets based on the Will after the testator’s death. This is usually a close family, a friend, or a professional executor.
Method of Safekeeping Written Will
A Will is a legal document written by hand making safekeeping an important matter. Only the executor and trusted people should know where the original written Will is located and how to access it after the untimely death of the testator.
This is to ensure that no tampering with the written Financial Will could occur and to prevent the loss of the original written document.
Legacy Planning Expert
This is a professional who will be assisting the testator during the construction of the written Financial Will and will be ensuring that the written Will is with proper structuring, with no ambiguous language, able to maximise the distribution of properties and assets to the beneficiaries, all while being able to follow all the legal parameters of Singapore when it comes to Financial Will creation.
Most Important Step You Must Not Ignore
The most important step you must not neglect in writing your Financial Will is consulting a legacy planning expert. In writing your Will it is important to follow specific parameters within Singapore law. Following these guidelines will ensure a smooth sailing execution of your Will. Seeking professional help during the writing of your Will can significantly improve the writing of your Will and ensure its validity. Writing your Will is not just a case of dividing your assets but also a way to safekeep your legacy ensuring peace of mind to those you leave behind.
The Life Legacy guides with the legality and protection of your legacy. Contact us now and start your legacy planning.
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