9 Common Mistakes to Avoid when preparing Your Will

You finally decide to have your own Will written to distribute your assets instead of leaving it to Intestacy laws.
You may wish to take note of below common pitfalls:

1) Debts & mortgage

Any debts left unpaid by you upon death will have to be paid out of your estate before your executor is able to distribute the remaining estate to the beneficiaries under your will.

If you have a loan taken jointly with a family member, he/she would have to assume the responsibility to repay the loan.

If you took a mortgage loan from a bank to finance a property, the joint owner of this property would have to take over the repayment of the mortgage loan upon your death. It would be prudent to purchase mortgage insurance to minimise the sudden financial burden on your loved ones. The lending bank has the right to foreclose on (take possession of) the property if the loan is not repaid.

Read about Alien Huang.

2) Digital Assets

In this digital era, most of us own some online assets such as social media accounts and email. Some of these digital assets, such as photos and social media accounts, might hold financial or sentimental value. Others, like login passwords, may be prone to misuse if you do not leave clear instructions.

It is important to list your digital assets’ information in your will/schedule of Assets. Your executor(s) need to be able to access your social media accounts and close those accounts based on your instructions in your will.

Make it a point to tell your loved ones where your original documents are…. the executor(s) need to produce the original copy of the will before the Court will issue a Grant of Probate.

3) Witnesses

You need to have 2 adult witnesses (Above age 21) when you sign your Will.

The 2 witnesses must not be beneficiaries or spouses of your beneficiaries in your will.

Failing to adhere to above could lead to an invalid Will.

4) Executor(s)

You may appoint anyone above 21 years of age (not a bankrupt, and of sound mind) to be your executor. While appointing a beneficiary under the Will to be the executor of your Will is possible, however, given the extensive responsibilities associated with the appointment as well as the corresponding legal obligations, you may prefer not to burden your loved ones with this onerous task.

It is vital that you consult the intended executor and obtain their consent to the appointment. Note that he can still renounce the role eventually when the time comes provided he has not intermeddled in the estate.

You may also consider appointing a corporate executor instead. Professional executors such as lawyers, or licensed trust corporations, are well-equipped to deal with legal complications which may arise.

5) Marriage and Divorce

A divorce does not revoke a will. Your previous will to your ex-spouse will remain valid even when your marriage has legally ended if you have not created a new will.

On the other hand, a will is automatically revoked upon marriage or re-marriage. The exception is if the Will expressly contemplate the marriage.

It is imperative to review and update one’s Will, especially upon:
• marriage or divorce;
• birth of your child;
• adoption of a child;
• death of a beneficiary;
• death or incapacity of your named executor, trustee, or guardian.

6) Joint Tenancy

Properties held in joint tenancy cannot be willed away. The surviving owner(s) takes ownership of the property automatically. Properties held under tenants-in-common can be willed. You may approach a conveyancing lawyer to convert the ownership from joint tenancy to tenants-in-common.

7) Lasting Power of Attorney (LPA) and Advanced Medical Directive (AMD)

A Will takes effect upon death only. Once you have planned to leave well, do not forget to plan for below scenario: alive but not well.

If you are still alive but lose mental faculties or becomes terminally ill and unconscious, it will be best to prepare “living will” documents such as the LPA and AMD.

8) Domicile

For non-citizens, different inheritance laws may apply to different types of assets.

Local inheritance laws apply for immovable properties. However, for movable properties such as bank accounts, stock, and shares, the governing law on inheritance would depends on your domicile.

Likewise, if you own overseas assets, check the applicable laws and if estate duties will be applicable.

9) Failing to fulfil family obligations

There may be legal provisions applicable to protect the interests of certain classes of immediate family dependents in the event they have not been reasonably provided for in a Will.

Such Wills may become contentious which may lead to disputes and disharmony among the family members, causing delays in estate administration.