What happens after you die?
Have you ever had this question in your mind? Well i know i would meet our Lord Jesus in heaven, but what's going to happen to my loved ones whom i have left on earth?
This concern prompted me to attend a talk today organized by the workplace "Will as You Wish", so i can better provide for my family should i be taken away. A director from a financial advisory company came to educate us on the basic essentials on writing a will. It was very insightful, and i captured some notes to share with you guys.
A person can die with a will (testate) or without a will (intestate). If a will is present, the distribution of assets will be done according to the will; otherwise it will be done according to the Intestate Succession Act (ISA) instituted by the Singapore law.
In a nutshell, the ISA states that if a person dies, his assets will be shared equally among his spouse and children. If there is no spouse, then everything goes to children; if no children, then everything goes to spouse. The logic is not difficult to understand, but the only caveat is that the ISA does not provide for living parents. Suppose you have two living parents, spouse and children, all your assets will be distributed equally among the spouse and children only, and parents get nothing. Unbelievable, but this is indeed how the law works. Thus, an added motivation to write a will is so that you can give specific instructions to provide for your parents should you go before them.
The benefits of writing a will is multi-fold. A will makes it quicker and cheaper to ensure your assets are distibuted according to your wishes. With a will, things may get done within a 6 month period; without one it may take up to 1.5 years in the least!! This is because it gets very laborious for the government to trace all the living descendants in order to comply with the ISA requirements.
The following assets/properties cannot be distributed in a will (means no point to write them in your will):
a. CPF Monies - this is done by nomination
b. Joint Tenancy Property - by law the surviving tenant inherits the property
c. Sect 73 Insurance Policy - this is done by indicating the beneficiary at the point of purchase
d. Children Trust Policies - by nature of the policy the child is the beneficiary
e. Assigned Insurance Policy (e.g. mortgages)
f. NTUC Income Insurance Policy - this is also done by nomination
g. Trust Accounts (didn't really catch what this is)
When drafting your will, it should include the following elements:
1. Revokation Clause - say something to revoke all previous wills or instructions (if any)
2. Appointment of Executor/Trustee/Guardian
3. Special Instructions (e.g. i wish to be buried in Mount Faber)
4. Asset Distribution Clause (e.g. x% to Mom, y% to Wife, z% to kid)
5. Common Disaster Clause - indicate what happens if your executor or beneficiary dies with you
6. Signature (Yours + TWO Witnesses)
Doesn't sound that very difficult to write a will, and there are one hundred reasons why everyone should have one. I'm glad i've become more educated in this area :)
Truly enjoyable gathering of Glory friends!
