Many people wonder if they need to write a will. Here are 3 key reasons why you should write yours:
1. Specify who will administer your estate
Writing a will allows you to appoint the person, people, or organization whom you trust to administer your estate; and also carry out your wishes and safeguard the interest of your loved ones.
2. Specify who will inherit your estate
A Will allows you to specify who will inherit your estate. If you don’t have a written Will, your estate will be distributed according to the Interstate Succession Act upon death.
Under the Interstate Succession Act, one’s estate will be distributed as follows:
- For someone who is married with child (or children), 50% goes to the spouse and 50% to the child (or children)
- For someone who is married without child, 50% goes to the spouse and 50% to the parents
- For someone who is single, 100% goes to the parents
There are many scenarios where the Interstate Succession Act may be inadequate. For example:
- What if you’re married with kids and would like your retired parents to receive part of assets?
- What if you’re single and want your siblings to inherit part of your assets?
- What if you want to give part of your assets to charity or a non-relative?
Writing a Will also prevents your assets from going to the people whom you do not wish to benefit. (Eg. A parent or child whom you are not in good relationship with)
3. Specify the distribution of your assets in your estate
If you have a large estate and many heirs, you may not want all your heirs to receive an equal share. In this case, a Will
A Will can help supplement other financial tools like life insurance, trusts, joint ownership of properties, etc, to reduce the chances of legal dispute and safeguard your estate from unnecessary probate costs.
“What if I don’t have much to leave behind?”
A common reason why people don’t write their Will is because they feel they don’t have much asset to leave behind. If you look at the problem from another angle – since you don’t have much to leave behind, shouldn’t you plan your estate more carefully?
Another important question you need to ask yourself is…
“How much is my estate worth?”
Consider your HDB flat or private apartment, CPF funds, other investments, and cash – these assets can easily add up to a six-figure amount. A widow may not be able to handle such estate without the help of a professional advisor.
Furthermore, under the law where there are minors who are entitled to the estate, the Court would require 2 administrators. You cannot be sure that your administrators (who are likely to be your next of kin) would be the people of your own choice.
“How do I write a Will?”
The easiest way to write a Will is to approach a Will Writing Company. If you need recommendations for a reliable Will Writing company, please check with your Financial Planner or contact us for more information.
