Wills Archives - Wills, Trusts & Property Blog

May 24, 2018May 24, 2018

Communication is key – Appointing of guardian

One would have heard more than once: Communication is key.

Unfortunately, there may be some instances when separated (or divorced) parents fail to communicate their choices of guardian(s) for their children in the event they pass away. In such situations, there may be conflicting choices of guardians in each parent’s will. What happens then?

While not an ideal situation, particularly for the child(ren), pursuant to section 7 of the Guardianship of Infants Act (Cap. 122, 1985 Rev Ed) (the “GIA”), each parent has separate authority to appoint any person to be the guardian of the infant after his or her death, by will or by deed. In this regard, we would clarify that while the term “infant” is not defined in the GIA, a “child” is defined in the Women’s Charter (Cap. 353, 2009 Rev. Ed) as a “child of the marriage as defined in section 92 but who is below the age of 21 years”.

Where one parent passes first, then the surviving parent shall be guardian of the infant, either alone, or (subject to objection by the surviving parent) jointly with any guardian appointed by the deceased parent.

An alternate situation may occur if both parents appoint the same guardians. In such instances, the guardians, after the death of the surviving parent, are required under section 7(5) of the GIA to act jointly.

If, there should be a dispute between the joint guardians, then any of them may apply to the High Court or a Family Court for that Court’s direction under section 8 of the GIA. Such Court also has the power under section 10 of the GIA to remove any guardian from guardianship and appoint another guardian in his/her place. In exercising such power, the Court is to have regard to the welfare of the infant and shall, where the infant has a parent or parents, consider the wishes of such parent or both of them.

At the end of the day, and as set out in the Singapore Court of Appeal case of Re C (an Infant) [2003] 1 SLR (R) 502, there exists an “overriding power of the court, in exercise of the jurisdiction conferred under the Act of either removing that parent as a guardian over the child, if it is established to the satisfaction of the court that it is not in the welfare of the child to be in the custody, care and control of that parent, or appointing another person as an additional guardian to act jointly with the surviving parent”.

As the cardinal principle is succinctly encapsulated at section 3 of the GIA, the welfare of the infant is to be the first and paramount consideration.

April 29, 2019April 29, 2019

Joint Accounts – Who does the money belong to after the death of an account holder?

The use of joint accounts is a common way for us to manage our finances, and many of us have a joint account with either our spouse or parents. However, the convenience of joint accounts can easily turn into a nightmare after the death of an account holder.

This article sheds some light on whether the credit balance of a joint account forms part of the deceased’s estate, and if it does, what an executor of the deceased’s estate should do to gain access to the joint account.

Is the credit balance of the joint account part of the deceased’s estate?

After the death of an account holder, the credit balance in the joint account can either vest in the remaining account holder(s), or it can revert to and form part of the estate of the deceased.

In most cases, the survivor(s) of the joint account will be entitled to the credit balance in the account when a joint account holder dies. This is because most Terms and Conditions (“T&C”) governing joint accounts contain a clause that stipulates the automatic transfer of the credit balance in the joint account to the surviving account holder(s) upon the death of an account holder (commonly known as a survivorship clause).

However, if the T&C governing the joint account does not contain a survivorship clause, for example, in cases where the joint account operates with joint signing authority, then the deceased’s estate will be entitled to the credit balance (in the relevant proportion) upon the death of the account holder.

Notwithstanding the above, either the executor of a deceased’s estate or the surviving account holder(s) may bring an action in the courts to dispute on who is truly entitled to the credit balance in the joint account.

If such a dispute arises, the court will have to determine the intentions of the deceased in order to decide who is truly entitled to the credit balance, which is seldom an easy task.

Some factors (not exhaustive) that the court may take into account are set out below in Table 1.

Table 1

Factors pointing towards the survivor(s) of the joint account being entitled to the credit balance	Factors pointing towards the deceased’s estate being entitled to the credit balance in the joint account
T&C governing the joint account contains a survivorship clause.	Money in the joint account comes solely from one account holder (the deceased).
Joint account was opened and held between persons in established categories of relationships (e.g. husband and wife, or parent and child), and the deceased is either the husband or parent.	The joint account was opened solely for the convenience of the deceased opening the account rather than as a gift to the other joint account holder(s).

As illustrated above, it is not always clear who will be entitled to the credit balance in a joint account after the death of an account holder. If an individual seeks certainty, he should keep his monies in a sole account instead.

What should an executor do to gain access to the joint account(s)?

The process of gaining access to a joint account is outlined below (subject to T&C governing the joint account):

In the event the credit balance in a joint account forms part of the deceased’s estate, the first thing an executor of the deceased’s estate should do is to provide notice of the account holder’s death to the relevant bank. Such notice is given by providing the bank with a copy of the death certificate. After receiving notice of the death of an account holder, the bank will be entitled to freeze the account.

Following which, the executor has to make an application for a grant of probate, and once the grant of probate is issued and collected by the executor, he will have to produce the grant of probate to the satisfaction of the bank to gain access to the joint account.

March 8, 2018March 8, 2018

Absence of an executor

In drafting a will, one is often advised to consider every possible situation conceivable so that the “what happens now?” situation does not arise. For instance, what if one’s husband perishes in a common accident? What happens if one’s children who inherits the house do not agree on what is to be done with it? What happens if one’s child loses his mental capacity?
What happens if one’s executor rejects the appointment? Even if one appoints alternate executors, the question may still arise. What if (even) my alternate executor renounces his right to act as such?
There are several reasons why there may be no executor to administer the estate:
(a) No executor is appointed by the will;
(b) The executor(s) appointed are legally incapable of or have renounced the right to act as such;
(c) No executor survives the testator (i.e. the person making the will);
(d) All the executors die before probate is obtained or before the estate is completely administered; or
(e) The executors appointed do not appear and extract probate.
Pursuant to section 13 of the Probate and Administration Act (Cap. 251) (the “Act”), on the failure of appointment of an executor in the situations set out above, the Court may grant letters of administration to person(s) which the Court deems fittest to administer the estate (in accordance with the terms under the will).
In this regard, the Act also sets out an order of priority of right to a grant:
i. The sole beneficiary of an estate or a beneficiary who receives the residuary estate under the will.
ii. If the beneficiary described in (i) above is deceased, the legal personal representative of that (deceased) person
iii. Such person or persons, being beneficiaries under the will, as would have been entitled to a grant of letters of administration if the deceased had died without a will.
iv. A beneficiary having a beneficial interest.
v. A creditor of the deceased.
Regardless whether the priority of right described above is acceptable (or even ideal) to you, we would recommend that thought be nonetheless given to who one’s executor should be, and at least who the alternate executor should be in the event that the first appointed executor is unable to act, for whatever reason. This would remove the stress and anguish that one’s loved ones may otherwise have to be confronted with having to (possibly) appear in Court for an application for the letters of administration. Needless to say, please also obtain the appointed executor’s agreement to act before penning down his or her name so that he or she can be prepared for the duties and responsibilities well in advance!

February 14, 2018February 14, 2018

Rights of a beneficiary under a will

There is no dispute that wills are generally regarded as documents of a private nature. Unlike in the movies where the deceased’s lawyer comes to the house to read out the gifts made under the will, there is generally no requirement for anyone to do so.

You may have been told by your late mother before she passed that your family home was yours to inherit. But she did not name you executor of her will, nor are you aware of the terms of the will. You only know that you are to receive a part of her estate, and that your uncle was made executor of your late mother’s will. Unfortunately, you have not always been on good terms with your uncle. Could it be that he is delaying the process to prevent you from receiving what is rightfully yours?

If asking the executor is a futile exercise, what are your entitlements as a beneficiary? Are you entitled to a copy of the will?

Notwithstanding the (generally) private nature of wills, the will becomes a public document after it is filed in Court. By way of background, before the executor is entitled to administer the deceased’s estate, the executor must file an application in Court for the grant of probate, which requires, amongst other things, the executor to file the will.

In this regard, since the will becomes a public document, beneficiaries may apply to Court to request for inspection of the will. This may involve the filing of a sworn (or attested) statement by you of your knowledge of the existence of (and details of) the will.

However, please note that this does not automatically mean that the will will be made available for your inspection. Whether or not the Court grants the application will depend on the circumstances. Generally, if there is strong evidence to show that you are a beneficiary under the will or are otherwise entitled to the estate, the more likely an application will be granted.

January 30, 2018February 14, 2018

Can I be an Administrator?

Our sincere condolences if you have just lost a loved one.

What happens now? To your knowledge, there is no will (and therefore no executor appointed), and you have been told that your loved one’s estate will be distributed according to the Intestate Succession Act (Cap. 146) (the “Act”).

But who will administer the division of assets?

Generally, the persons who are entitled to apply to be appointed as administrator of the deceased’s estate (and are granted with the letters of administration) are the persons who are entitled to receive distributions under the Act, i.e. in the following order of priority:

spouse;
biological or legally adopted children;
parents;
brothers and sisters;
nephews and nieces;
grandparents; and
uncles and aunts.

What if the persons ahead of you in the list are still in grief, incapable of administering the estate, or are simply not interested in doing so?

Even if you do not have the highest priority in the order above, you may still be appointed as administrator if you obtain the consent of the beneficiaries who rank more highly in the list than you. Their consent, however, should be recorded in writing and attested (i.e. signed under oath).

Please let us know if you require our assistance.

December 14, 2017December 14, 2017

Who should be my executor?

Technically speaking, anyone of sound mind above the age of 21 (and who is not a bankrupt) can be your executor.

Briefly, an executor is the person responsible for carrying out your wishes as set out in your will in the event you pass on. Their duties typically include making funeral arrangements, applying to Court for a grant of probate to allow them to start distributing your estate, locating your assets, settling any debts which you may owe and distributing your assets per your wishes under the will. Considering the duties of an executor, you would probably prefer to pick someone who you know personally and whom you trust. Crucially, a close relative or friend will often be in the best position to know you and your wishes well, as well as being fond of your beneficiaries.

That said, what happens if after your death your executor decides to reject his or her appointment? Particularly at a time of mourning, being faced with various administrative responsibilities and possibly a court appearance may be seen as burdensome and stressful.

A possible solution could be to alternatively, or in addition to your relative/friend, appoint a professional executor to guide your personally appointed executor through the process and/or to take charge of the more complex administrative duties. This will prove particularly useful in situations where more complex legal matters arise such as where it may be likely that relatives challenge the will (where they are intentionally left out without their knowledge), where assets are located overseas, or where there are trust instruments involved.

Please let us know if you require our assistance.

December 7, 2017February 14, 2018

Food For Thought: Can Frequent Flyer Miles be inherited?

I came across an interesting question the other day. Can one will away one’s air miles?

Odd as it may seem, with the increased utility of air miles as the equivalent of “cash” in modern times, could air miles be considered personal property such that a person was entitled to bequeath them to another upon his demise?

After all, air miles today are not simply a currency to redeem air tickets, but can often be used for, amongst other things, in-flight purchases, or conversion to cash vouchers for groceries! Since air miles are (almost) as versatile as traditional currency, and if converted to personal property would be in a form fit to be bequeathed as inheritance, what is stopping air miles from being bequeathed in their original form?

Though air miles are “crypto-currency”, they are fundamentally borne out of airline membership programmes. Therefore, the rules governing the use or transfer of air miles will typically be found within the terms and conditions of that membership programme.

In respect of our national carrier’s membership programme, KrisFlyer, having reviewed the Terms and Conditions of the KrisFlyer programme, it seems that the question has already been duly considered. The relevant clause is set out below:

Membership will terminate immediately upon death of the member. Miles and rewards earned but not redeemed at the time of death, as well as benefits and privileges, will be automatically forfeited on the death of the member. Miles and rewards do not constitute personal property and may not be bequeathed or otherwise treated as personal property.

So the answer, insofar as it relates to KrisFlyer miles, is clear: KrisFlyer miles cannot be inherited.

Better redeem those miles quickly!

Caveat: We should mention that our observations above are subject to any changes which may be made to the terms and conditions of the airline’s rewards programme.

November 30, 2017

Old technology, but new age of wills?

With the world talking about the movement into a paperless digital age, cryptocurrency and blockchain technology, the technologizing of wills is still up for debate.

As written earlier, the proposal that text messages be accepted as a medium for wills was rejected by the United Kingdom’s Law Commission.

On the contrary, the Supreme Court of Queensland has in October 2017 accepted an unsent, draft text message on a dead man’s mobile phone as an official will. While we emphasise that the text message was unsent and in draft form, the Court there made some useful comments as to the amount of evidence which they needed to be satisfied that the deceased drafted the text message as a will. This included, amongst other things, the wording of the text message, e.g. the use of the words “my will”. The deceased also made clear references to his house and superannuation, while specifying that his wife was to take her own things, all of which indicated that he was aware of the nature and extent of his estate.

While we cannot comment substantively on Australian law, we understand that the law in Queensland was changed in 2006 to allow less formal types of documents to be considered as a will. We also understand that in Australia there has generally been movement away from strict compliance to traditional will formalities.

Further to the foregoing, while there seems to be a divergence in views (i.e. between English and Australian law) as to whether wills by text can be accepted, given that there has yet to be any legislative change in Singapore similarly allowing less formal types of documents to be considered as wills, it is unlikely, in the event someone tries to apply for a grant of probate in Singapore using an ‘unsent, draft’ text message as a will, that that unsent draft text message will be recognized as a will.

That said, if you would like to draft a will, take note to ensure that the formal requirements are met. This includes, inter alia, signing the will in the presence of two witnesses (both of whom should not be beneficiaries under your will).

July 30, 2017November 30, 2017

Wills by Text

WARNING: Morbid description

Imagine, god forbid, that you are involved in a serious car accident, and help is too far away. At that point, you know you would not be able to make it back home alive, but you want to ensure that your assets are passed on to your loved ones in a specific manner, for instance, your grandmother’s wedding ring is to pass to your eldest daughter, and your holiday home to your brother. But you have not yet made a will to that effect.

Under Singapore law, strict requirements must be complied with in order for a will to be valid. For one, every will must be signed at the end by the testator (or by some other person in his presence and by his direction) in the presence of two witnesses present at that time.

Taking a step back, what if, hypothetically, you could, draft a valid will by way of text message, or, dare I say, by voicemail?

This is precisely what has been proposed by the Law Commission in the UK earlier this week. Armed with a warning that the current legislation on wills is out of step with the digital world and puts people off writing a will, the Law Commission has proposed that text messages, emails and voicemails be considered legally binding records when dividing deceased’s estates. If accepted, this would no doubt rock the world in an overhaul of the pre-existing Victorian laws on wills.

While this proposal is a breath of fresh air in the midst of old laws generally (and gives effect to people’s wishes particularly in situations of emergency), it may create more problems than it solves. At the outset, are these digital memos verifiable? To elaborate, can one conclusively say that the testator was the person creating and/or sending the voicemail/text message? What if there are no witnesses to the act?

The Law Commission has, in this regard, proposed that judges be empowered to decide on the balance of probabilities whether the recording or note is an accurate summary of that person’s wishes. But if the issue is commonplace, would that then not give grieving families more grief, since any ambiguity (where so challenged) will be conclusively decided by an outsider?

At the end of the day, while it may well be time to overhaul the Victorian laws on wills (including the Singapore Wills Act), it cannot be adequately stressed that safeguards must be put in place to ensure that the distribution of an estate goes smoothly without having to put a grieving family through more pain.

Update: The English government has rejected the proposal that the laws surrounding wills be changed to allow people to send wills by text message, citing reasons of potential fraud and exploitation. In light of the numerous practical difficulties associated with the proposal, we would tend to agree with their decision, at least until adequate safeguards against the risks of fraud and/or exploitation are put in place. Stay tuned!

November 29, 2017November 29, 2017

Will the state take all my money if I pass away without a will?

In most situations, this is nothing more than a myth. If one dies without a will, your assets (including your money) will be distributed to your legal or biological next-of-kin surviving you under the Intestate Succession Act (the “Act”). Under the Act, the following persons may be entitled to share in the distribution, under the rules prescribed therein:

Spouse
Legal or biological child
Parent
Brother/sister (or if deceased, their children)
Grandparent
Uncle/aunt

Only rarely, in cases where there is no will and no distribution is possible as there is no next-of-kin as set out above, will the deceased person’s assets be distributed to the state.

Separately, we specify “legal or biological next-of-kin” because, under the Act, only biological or legally adopted children are entitled to claim against their natural parent’s estate. A “child” as defined under the Act does not include step-children, nor does it include persons who are not legally adopted.

In this regard, if you have step-children or children who you have long treated as your own (but did not legally adopt) and you wish your assets to pass to them on your death, we strongly advise that you create a will to provide as such. The law will not otherwise recognise their entitlement to your estate, no matter how the evidence may point to the presence of a paternal/maternal bond between you and them.