Do you want to ensure that your family and loved ones are taken care of even after you depart from life? Well-known in numerous films and series, Financial Wills are typically depicted to be something that is created by older people who want to distribute their assets properly. However, death can come at any age, so it is better to be prepared while you still can.
You will learn all about the creation of a Financial Will in this article. But first, let us talk about the legal parameters for a Financial Will.
Legal Conditions For Making A Financial Will
A valid will under the Wills Act (Cap 352) must meet the following legal requirements:
The testator or creator of the Will must be at least 21 years old and should be of sound mind.
A Financial Will must be written, and signed by the testator at the end, and ensure that there are no additional writings other than the signature to maintain the document's integrity and validity. These requirements aim to safeguard the authenticity of the testator's intentions and prevent fraud or disputes after their passing.
At least two witnesses are required to be present to witness the testator's signature and sign to testify each other's presence. Beneficiaries and their spouses will not be able to act as witnesses, or the Will will be deemed invalid.
The testator must have the necessary testamentary capability, meaning they must be of sufficient mental capacity to think about the Will properly.
The Financial Will must comply with the internal law of the territory where it was executed or the testator's domicile, habitual residence, or nationality.
Steps to Create a Financial Will
Drafting a Will is a crucial step towards ensuring that your assets are distributed according to your wishes and that your loved ones are taken care of after you're gone. While this process may seem daunting, our step-by-step guide will help you navigate through it with clarity and confidence. We strongly recommend consulting with our Practitioner throughout this process to receive personalized guidance and ensure that your Will meets all legal requirements.
Ensure Legal Eligibility:
Before proceeding, confirm that you meet the necessary legal requirements. In Singapore, this involves being at least 21 years old and of sound mind. This ensures that you have the legal capacity to draft a Will and that it will be valid under Singaporean law.
Asset List:
We recommend creating and regularly updating a list of your assets. Will typically categorises assets as either immovable (land, property, buildings) or movable (jewellery, car, furniture). It's important to remember that things like joint bank accounts, jointly owned property, and CPF accounts are not included in this list.
Identify Beneficiaries:
Clearly identify who you want to inherit your assets. It's essential to think through this step carefully and ensure that your intentions are clearly stated in the Financial Will. Consider any vulnerable beneficiaries who may require special provisions, such as minors or individuals with disabilities.
Decide Distribution Method:
After debts and taxes are paid, the remaining assets are distributed to the beneficiaries as specified in the Will. Distributing assets from a Will involves several key methods, primarily through specific bequests, the residuary estate, and real estate allocations. Specific bequests allow the Testator to give particular items or sums of money to named beneficiaries. These can include cash gifts, personal property such as jewellery, artwork, collectables, and family heirlooms, all directly bequeathed to certain individuals.
Following the distribution of these specific bequests, the remaining estate, known as the residuary estate, is divided among the beneficiaries as specified in the Will. This division often involves set percentages or portions for each beneficiary, ensuring that the remaining assets are distributed according to the testator’s overall wishes.
Select Executor:
Select an executor whom you trust implicitly to carry out the instructions specified in your Financial Will. The executor's role is crucial, as they will be responsible for distributing your estate, paying debts and taxes, and distributing assets to beneficiaries according to your wishes. Discuss this decision with the chosen individual beforehand to ensure their willingness to fulfil the responsibilities.
Appoint Legal Guardian:
If you have minor children, it's imperative to appoint a legal guardian in your Will. This guardian will have the legal authority to care for your children and make decisions on their behalf should something happen to you. Additionally, consider making financial provisions for the upbringing and education of your children, such as setting up a trust.
Consultation with Legacy Planning Expert:
Work closely with our experienced legacy planning expert to draft your Financial Will. During this process, they will guide you through potential blind spots, offer tailored solutions to meet your unique needs and ensure that your Will accurately reflects your intentions. This step is critical for minimising the risk of oversights and ensuring that all legal requirements are met.
Include Essential Clauses:
To safeguard the validity and clarity of your Financial Will, consider including essential clauses. A revocation clause nullifies any previous Wills, preventing confusion about which document is legally binding. Specify the jurisdiction where your Will is effective (whether locally or internationally) and include a residuary clause to cover any assets not explicitly addressed.
Secure Document:
Once your Will is finalised, ensure its safekeeping. Store the original document in a secure location, such as a safe deposit box or with a trusted legal service provider like PreceptsGroup. It's crucial to inform your chosen executor of the Will's location to facilitate its prompt retrieval when needed.
Regular Review and Updates:
Regularly review and update your Will as needed. Life events such as marriage, divorce, the birth of children, or significant changes in financial circumstances may necessitate revisions to ensure that your testamentary intentions remain current and reflective of your evolving situation.
Creating a Financial Will is a responsible step that ensures your wishes are carried out and your loved ones are provided for according to your intentions. By following these steps and consulting with our dedicated team, you can create a comprehensive and legally sound Financial Will that provides peace of mind for you and your family. Remember, our legacy planning experts are here to support you throughout the process and address any questions or concerns you may have. Start today to protect your legacy and ensure your assets are distributed as you wish.
Other Factors To Take Into Account
Comprehensive Writing
A WIll should be precise and complete with no ambiguous or unclear wording.
Complete Information
You must provide the complete information of your wishes in the Will to prevent confusion.
Reviewing and Updating
Wills should be updated every 3-5 years to take any major life changes into consideration.
Taking Digital Assets Into Account
Digital assets such as accounts or stored data should not be neglected to prevent conflict among beneficiaries.
Encompassing All Property Ownership
Make sure all forms of ownership and assets are stated in the will to not leave anything unaccounted for.
Articulate Your Will With A Professional Through The Life Legacy
Creating a Will by yourself is not an optimal choice. Since it is your first time creating a Will, why not hire experts to help you articulate exactly what you want to happen after your death? Legacy Planning experts have vast knowledge and skills in the topic, so you can ensure that your Financial Will is precise, adheres to Singaporean laws, is well-constructed, and is free of any loopholes to avoid conflict among your beneficiaries.
Here at The Life Legacy, you can be sure to create your Will the way you want it through the assistance of our Legacy Planning Experts. Contact The Life Legacy and secure your future today!
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