Wills in Singapore
We’ve written previously about the importance of drafting your Will in Singapore.
However, writing a Will is something many Singaporeans put off, or completely ignore. We’ve speculated that this is a cultural phenomenon, and that Singaporeans are generally pantang about anything to do with death.
Unfortunately, most people don’t realize that if you do not write a Will, your property will be distributed in accordance to intestacy laws, or Syariah law, if you are Muslim.
To find out more about Wills in Singapore, read:
- What are the benefits of making a Will in Singapore?
- The DIY Guide to Drafting Your Own Will in Singapore
- Example of a Will in Singapore
Lasting Power of Attorney in Singapore
While most Singaporeans have at least a rough understanding what a Will encompasses, less are familiar with the Lasting Power of Attorney.
In general, a Lasting Power of Attorney allows a person or persons you appoint to manage the decisions revolving around your personal welfare and/or finances should you lose the mental capacity to make a decision in the future.
Most people don’t think too much about losing mental capacity in Singapore. It’s easy to fall into the trap of thinking that it’s something that only happens to “other people”. However, the range of situations that can lead to a loss of mental capacity tends to be wider than most people think.
It’s not just a situation of not being able to make decisions for yourself when you develop a mental illness, such as dementia. Unfortunately, this seems to be a popular misconception. In fact, one of the more common situations in which a Lasting Power of Attorney comes in handy is when there are serious accidents leading to a coma.
When one lacks the mental capacity to make decisions, it also means that their assets are stuck, as family members or close relatives have no standing to make the necessary financial and personal decisions for that person. This can lead to unforeseen and unintentional burden to the family members, who may then have to take up lengthy, cumbersome and costly applications for deputyship in Singapore.
To find out more about Lasting Power of Attorney in Singapore, read:
CPF Nomination in Singapore
CPF savings (monies in Ordinary, Special Medisave and Retirement Accounts) cannot be willed away and do not form part of your estate. The method of distributing your CPF money is through a CPF nomination.
If you do not make a CPF nomination, your CPF savings and/or discounted SingTel shares will be distributed by the Public Trustee in accordance to the intestacy laws. However, do note that the CPF Dependent’s Protection Scheme is something entirely different.
There are three types of CPF nominations:
- Cash nomination – this means that your CPF nominees will receive the CPF monies in cash.
- Enhanced Nomination Scheme nomination – this means that your CPF monies will go into your nominee’s CPF account.
- Special Needs Saving schemes – this scheme allows parents to nominate their children with special needs to receive the CPF savings due to them on a monthly basis.
It is recommended that a CPF nomination should be made in person at one of the CPF service centres so that they are able to advise you accordingly.
If you intend to opt for the Enhanced Nomination Scheme nomination and/or the Special Needs Saving Scheme, the nomination needs to be completed at the CPF service centres.
However, if you are certain and familiar with the CPF nomination, and only want to do a cash nomination, the CPF nomination may be made by filling up the requisite form in front of two witnesses who are Singaporeans, above 21, and are not your nominees.
Why you should do your Will, Lasting Power of Attorney and CPF Nomination at the Same Time
For the purposes of estate planning, it makes a lot of sense to do your Will, Lasting Power of Attorney and CPF nomination at the same time.
These three documents are the main pillars of estate planning in Singapore and the faster you get to having them drafted, witnessed and signed, the faster you stop having to be concerned about how to protect your loved ones after you pass on.
Do your Will, Lasting Power of Attorney and CPF Nomination at the same time at an affordable, packaged rate. Get in touch with us here.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information and content available on this website are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.