Pre-planning for death

Preparing for death is one of the most empowering things you can do.

Will writing

All you need to know about writing a will in Singapore

Formalities of a Will

Will must be made in writing.
Testator must be at least 21 years old.
Testator must sign at foot of will in front of 2 witnesses.
Witnesses must also sign the will in the testator’s presence
2 main witnesses cannot be beneficiaries of the will.
Spouses of beneficiaries cannot be the main witnesses either

Source: Singapore Legal Advice

While not mandatory, engaging a reputable wills lawyer is recommended because of the intricacies involved. Professional advice from a trained consultant will help you devise the necessary content to include in a will, preventing unnecessary losses, conflicts or confusion in the long run.

What to Include in a Will

A list of all of your assets. A jointly-owned bank account or real estate property cannot be devised by a will.
A list of all your liabilities. You must state how you want your debts to be paid off before your assets are distributed to the beneficiaries.
The beneficiaries (who to give the assets to) and guardians (for if the beneficiaries are not of age), and how much each one is to receive. You may also want to include reserve (i.e. backup) beneficiaries in the event of simultaneous death.
The executors (to carry out your will). A beneficiary may also be the executor.
The advisor or specialist involved. E.g. lawyers and accountants.
A revocation clause to nullify any wills that has been prepared previously.
A residuary clause that distributes any remainder of your estate according to your wishes. For example, if a beneficiary dies before you, the asset bequeathed to him becomes the remainder.

In Singapore, it generally costs between $200 to $400 to engage a lawyer to draft a simple will.

Lasting Power of Attorney

A lasting power of attorney is a legal document that allows a person aged at least 21 - called the donor - to voluntarily appoint another individual - called a donee - or multiple people to make decisions and act on their behalf if they lose mental capacity. About 30,000 people under 50 have drawn up a Lasting Power of Attorney (LPA) since 2010 but more Singaporeans need to get on board.

How to make an LPA

The Ministry of Social and Family Development (MSF) is working with the Ministry of Health (MOH) to promote the importance of planning early and there are plans to launch a digital campaign as well. Here are the steps on how to make an LPA:

Step 1 – Choose your donee(s)
1. Choose what decision powers to grant them – Personal welfare and Property
A. Personal welfare: making decisions relating to your daily activities and where you should live
B. Property & Affairs: making decisions on your financial matters, etc managing your bank account and property or both
2. If you have more than 1 donee, decide if they will act
A. Jointly: Donees have to act together and not individually
B. Jointly or severally: Donees can make the decision together or individually. One donee can act without consulting the other
Step 2 – See a certificate issuer (CI)
a. Who are CIs: Accredited medical practitioners, practising lawyers, registered psychiatrists
b. Role of the CI: Ensuring that you are not being forced or deceived into making an LPA, understand the power of an LPA and the powers given
c. Where to find a CI
i. List of accredited medical practitioners
ii. Directory of lawyers
iii. Directory of psychiatrists
d. Other than these CIs, there are also not-for-profit organisations who offer LPA certificate issuing services
i. Life Point's LPA One-Stop Services
ii. Potter's Place Community Services Society
(Applicants will have to pass a Means Test)
iii. Mount Alvernia Outreach Medical Clinic @ Enabling Village
(Only for referrals from MSF or social service organisations and persons with disability)
Step 3 – Submit your LPA
e. Mail it to the Office of the Public Guardian (OPG) where they will verify your documents and accept your LPA for registration. If no valid objections have surfaced in the following 3 weeks, the LPA will be registered
f. Mailing address: 20 Lengkok Bahru #04-02, Family @ Enabling Village Singapore 159053

Benefits of an LPA

a) Enables a person to make a personal, considered choice of a trusted proxy decision maker, who is reliable and competent to act in his/her best interests should he/she lose mental capacity one day
b) Reduces the stress and inconvenience faced by loved ones who need to apply for a Deputyship order if the person loses mental capacity without an LPA in place

Convenience and Cost of Making an LPA

a) The OPG has extended the LPA Form 1 application fee waiver for Singapore citizens to 31 March 2023, to encourage more Singaporeans to plan ahead and apply for a Lasting Power of Attorney

b) Nonetheless, applicants are required to pay a fee to engage an LPA Certificate Issuer to witness and certify their applications
c) Click here to view the List of Most Visited LPA Certificate Issuers and the fees they charge. This list includes Non-Government Organisations who also offer LPA Certificate Issuing services

Requirements for making an LPA

a) At least 21 years of age
b) Have the mental capacity to make the LPA
c) Must not be an undischarged bankrupt if you wish to make an LPA for property & affairs matters

Other important things to note when making an LPA

a) Parents of children with intellectual disability may apply to the Court to be appointed deputies if the children are likely to be still lacking in capacity after 21 years of age.
b) The witness for the revocation form can be any individual above the age of 21, who is not a donee or replacement donee appointed in the new LPA (if there is one). A lawyer or medical practitioner can be the witness too.
c) A red seal is needed to be affixed onto the LPA as the LPA is a deed, which is a legal document. It is currently a legal requirement under common law for a red seal to be affixed on certain deeds, including the LPA. This seal allows the LPA to be relied on by third parties when the Donee acts on behalf of the donor when the latter loses mental capacity.

Estate Planning

Estate Planning – Managing a loved one’s estate after their passing in Singapore

You have the flexibility of choosing whether to transfer your estate before or after your death

Transferring before death

Transferring after death

During your lifetime, your assets (e.g. your savings, property and investments) can be transferred to anyone as gifts or through trusts

Regardless of whether you have a will, the estate transfer would be done through the probate process

Gift: Once the asset is unconditionally given away, you no longer hold the title to it, and the receiver becomes the new owner.

If you don't leave a Will, your estate will be distributed to your beneficiaries according to the intestacy laws or Will substitutes.

Trust: A trust transfers your assets to a trustee, with specific instructions on how you want the assets or income from the assets distributed.

Intestacy laws are inflexible and the settlement process is long. Wills and Will substitutes ensure that your estate is distributed more quickly, and according to your wishes.