Advantages of the Will (other than Insurance Nomination Law ) & 7 things to look out in a will
January 21st, 2010 by ALVIN SOONG
The Insurance Nomination Law that came into effect in September last year has simplified the rules governing the process of nominating beneficiaries for life policies but this covers only life policies and not other assets such as cash, shares, immovable property and businesses. A will is still important to have. For some people, they think it is more convenient to make a will so that they do not need to deal with different insurers if they have bought policies from different insurers.
Some of the advantages of the will:
1. Other than people, the bequest of the the will can be animals or charity based on the person’s instructions in a will. They can even use the will to upkeep the regular monthly maintenance of the animal or assets
2. One can also stipulate that certain conditions be met before the beneficiaries collect their share of the estate.
3. Special Request: one can even use a foundation or their will to payout to the custodian in the will so as to ensure the asset that is willed can be paid out a monthly amount to their descendants ( one request was a couple willed their pernakan museum to only male descendants of $2000 per month until the lineage of male descendants runs out.The payments are for the custodian’s personal use and maintenance of the museum)
Another Special Request is also one who indicated their beneficiaries must marry people of the same race if they were to get the bequest. This is still practiced among some minorities.
4. Will can indicate after one methodology of how their funeral can be done with the money that is left over.
5. The Court of Appeal ruled that illegitimate children are not entitled to maintenance from a deceased parent’s estate. Under a will, if it indicates that it must provide for the two illegitimate children, this rulw would be incontrovertible.
7 Things to look out for in a while:
1. Choice of executors
Weigh up his educational level, ability to understand legal matters pertaining to the estate, relationship with likely beneficiaries and the level of trust between both of you.
2. Check on status of assets
It is important to establish whether the property is capable of being bequeathed by way of a will. (eg. Real estate held in joint tenancy cannot be disposed of by way of a will and instead passes automatically to the surviving joint owner or owners)
3. Overseas property
Take care when including overseas property as the law in that country will apply. It is always prudent to ask a foreign lawyer first whether that property can be distributed by will in the way intended.
4. Pre-empting a challenge
Sometimes a person may not want to give anything to his wife or a particular child. In this situation, it is prudent to include in the will a specific provision such as: ‘I am not giving anything in my will to ABC because I have already given her in my lifetime such of my assets as I think she deserves.’ Or you could provide a nominal sum. This eradicates a possible challenge by ABC claiming that he was unfairly left out of the will or that there was pressure from some quarters to cut him out.
5. Witnesses
A will has to be signed in the presence of two independent witnesses who are above 21. If a will has to be made while you are in a hospital or a hospice, get the doctor to be one of the witnesses so that any challenge to your mental capacity can be eradicated.
6. Muslims
Muslims must take note that they are not free to distribute their property as they like and they must comply with the provisions of the Administration of Muslim Law Act.
7. Review your will
Review your will every three to five years or if there is a life-changing event such as a marriage, divorce or birth of another child. Note that wills are invalidated when a person marries, so a new will must be drawn up.
Summarised from Sunday Times and various sources
