4 Unexpected Consequences of Not Having a Will

If you were to ask the average Singaporean whether they have a Will, chances are they’d say no, citing the common belief that “the government will settle it for me”. But is this entirely accurate?

The simple answer is:

“Yes, but not quite.”

You might wonder, what exactly do we mean by “not quite?”

While it’s true that the Intestate Succession Act (Cap. 147) provides guidelines for asset distribution if you pass away without a Will, it doesn’t address who will oversee this distribution.

Inheritance involves not just the allocation of assets but also the designation of the individual responsible for managing and distributing them.

Who is responsible for distributing my assets if I don’t have a Will?

Despite what many believe, the government does not handle the distribution of your assets. Instead, when the situation arises, the Intestate Succession Act (Cap. 147) and the Probate and Administration Act (Cap. 251) collaborate, empowering the Courts to select someone to manage this task on your behalf ¹.

The mere necessity for the Courts to appoint someone to handle your assets can result in unforeseen outcomes.

Before delving into those scenarios, it’s important to grasp the concept of the process of probate. If you’re already familiar with it, feel free to skip ahead.

What is Probate?

Probate is a legal process that occurs after an individual’s death. Essentially, it involves applying for the authority to initiate the distribution of the deceased’s assets.

• If there is a Will

The Probate process will focus on:

1. Determining that the Will is a valid Will.
2. The Will is the last Will of the deceased.

• If there is no Will

The Probate process will focus on:

1. Determining who the deceased’s next-of-kins are.
2. Determining who will distribute the deceased’s assets.

If you want to understand the probate process in more detail, we explain it in our comprehensive article here.

Now, let’s return to the main question:

“What’s so bad about the Courts appointing someone to distribute my assets?”

The Consequences of not having a Will

Consequence 1: You don’t know who is going to distribute your assets

• If you have a Will

You would have appointed an Executor, an individual responsible for distributing your assets.

• If you do not have a Will

Without a Will, no one is assigned the task of distributing your assets.

As mentioned earlier, the Courts handle this during Probate. It’s not a random selection. your next-of-kin must apply, and the Courts make the decision. This means that virtually anyone could potentially apply. It’s highly doubtful that the Court knows your next-of-kin better than you do.

Consequence 2: All your assets are frozen - Your loved ones may have to wait up to a year before getting any money

• If you have a Will

In the Probate process, having a Will simplifies matters significantly, as it primarily focuses on verifying the validity and authenticity of the Will itself.

Consequently, Probate with a Will takes up to 3 months.

• If you do not have a Will

Without a Will, the Probate process becomes more complex, involving two main tasks:

1. Identifying the deceased’s next-of-kin.
2. Appointing someone to distribute the assets.

Consequently, Probate without a Will, is considerably lengthier, potentially taking up to a year or even more.

Imagine this scenario.

_>You’ve passed away, leaving behind massive hospital bills. Even if your loved ones are self-sufficient and don’t rely on your assets, these unexpected expenses can hit hard. With Probate taking up to a year without a Will, your family faces a long wait while waiting for the Court to name a personal representative, called an Administrator, to distribute your assets under intestacy laws in Singapore. This adds additional stress and complexity for your family during an already difficult time. Meanwhile, your family must shoulder the burden of your hospital debt, placing undue financial strain on them. This is especially difficult for retired surviving parents who are unable to seek employment due to their age, intensifying their hardship during this challenging period. _

If you do not have a Will or designated beneficiaries for certain assets such as life insurance policies, your family may also have to deal with the added costs and complexity of working with probate lawyers to distribute your personal property, estate, and assets, which can be avoided by having a Will and obtaining a Grant of Probate.

This prolonged timeline can have significant implications, especially considering that during Probate, all the person’s assets, bank accounts are frozen, and properties cannot be accessed.

Consequently, the family may face financial challenges, particularly if the deceased was the primary source of income. The inability to access funds during this period can disrupt the family’s ability to cover essential expenses, posing significant hardships.

For further details on obtaining the Grant of Probate, delve into our comprehensive article, where we cover the required documents, eligibility criteria for applicants, and the court procedures involved in obtaining it. Access the article here to gain a thorough understanding of this important legal process.

Consequence 3: It’s more expensive - Your loved ones may have to spend up to S$1000 more on legal fees.

As we’ve mentioned above, Probate is a Court process involving a court application. Therefore, it would likely involve lawyers. As you know, the longer lawyers are involved, the more expensive (they charge you hourly rates, remember?).

We’ve checked out the prices on the market, and found that Probate applications for people without Wills start from S$2400. By contrast, probate applications for people with Wills start from S$1400. That’s S$1000 more expensive - and we’re only talking about the lower price range for legal services! If you think about it, writing a Will with a lawyer may cost about S$500. This is half the (additional) cost of passing away without a Will! If you’re using WillCraft, which starts at S$99, the cost for passing away without a Will and going through probate court is approximately 20 times more!

Consequence 4: The chance of family disputes increases

After a death in the family, emotions and tensions are understandably high. To add to all that stress, your loved ones still have to make decisions such as:

1. Who should take on the responsibility of distributing the deceased person’s assets;
2. Who should settle the hospital bills, if you’ve got hospital bills to pay;
3. Who should take out loans to settle outstanding bills, if loans are required from financial institutions.

To add to that, they won’t be getting the inheritance to ease the situation until a year after the time of death! Additionally, without a Will, the deceased’s assets will only be distributed to family members in accordance with priority rules, under the Intestate Succession Act, which can potentially lead to family disputes and tensions.

Imagine this scenario.

Meet Sarah, a successful businesswoman and loving mother of three children. Unfortunately, Sarah unexpectedly passes away without having made a Will. Under the intestate law, her estate would be distributed according to predefined rules. As a result, her husband would receive 50% of the estate, while the remaining 50% would be divided equally among their children. However, Sarah had always intended for her eldest child, who has special needs, to receive a larger portion of her assets to ensure ongoing care and support. Without a Will to express her wishes, Sarah’s estate distribution does not align with her intentions, emphasising the crucial need for proper estate planning through a Will.

Don’t wait until it’s too late and your family is left to sort out disputes over your estate - take the time to write your own will, which is such a crucial legal document, and ensure your wishes are carried out through proper estate planning.

I don’t know about you, but it’s stressful just thinking about it. If you’ve got a Will, all that goes away, or in any case, is kept to a minimum. All your family needs to do is follow the instructions and preferences set out by you in the Will, allowing them to grieve in peace.

And that’s where we at WillCraft step in! WillCraft is the first online Will Drafting platform in Singapore. And the first thing that probably comes to mind is: “Can I trust an online service with something as personal and private as this?”

Do not fret, our Wills are drafted by Singapore qualified lawyers. In fact, WillCraft’s parent company is a law firm itself. So with just a small additional fee, we give you the option to have your Will reviewed and witnessed by our own lawyers! Furthermore, the packages and prices listed on our website are all indeed a flat fee! Yes, no hourly rates, no sky high prices, just honest work at an affordable cost. Don’t leave your life up to chance before it’s too late, secure your future for your loved ones today with WillCraft!

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Frequently Asked Questions

What happens if you die without a Will in Singapore?

If you die without a Will in Singapore, your assets will be distributed according to the intestacy laws of Singapore. These laws dictate how your assets will be divided among your surviving family members, depending on factors such as marital status, whether you have children, and other familial relationships. It's important to note that without a Will, you won't have control over who receives your assets, which can lead to potential disputes or unintended outcomes. To ensure that your assets are distributed according to your wishes, it is advisable to create a Will outlining your desired distribution of assets and appointing an executor to carry out your wishes.

What happens to bank accounts when someone dies in Singapore?

When someone in Singapore passes away, their bank accounts may be frozen temporarily by the bank to prevent any unauthorised transactions. The executor or administrator of the deceased's estate will need to provide the necessary documents, such as the death certificate and letters of administration, to access the funds in the deceased's bank accounts. The bank will then release the funds to settle any outstanding debts, taxes, and distribute the remaining balance according to the deceased's Will or Singaporean laws of intestacy if there is no Will. If the deceased had insurance policies, the insurance company would require to see the Grant of Probate or Letters of Administration to know they are paying out to the authorised person. It is advisable to contact the respective bank and insurance company for specific procedures and requirements in such situations.

Can you inherit from someone who has not made a Will?

If someone passes away without a Will, their estate will be distributed according to the laws of intestacy in Singapore. In general, the estate will be distributed among the deceased person's closest living relatives, such as their spouse, children, parents, or siblings, depending on the Intestate Succession Act. If you believe you may be entitled to inherit from someone who has passed away without a Will, it is advisable to seek legal advice to understand your rights and options in relation to the deceased’s estate.

What are the consequences of dying without a Will in Singapore?

Dying without a Will, also known as dying intestate, can have several consequences:

1. Intestacy Rules Determine Inheritance: The distribution of your assets will be decided by the laws of intestacy in Singapore. This may not align with your wishes or the needs of your loved ones.
2. Probate Process: Without a Will, the probate process can be more complicated and time-consuming, potentially leading to delays in asset distribution.
3. Potential Family Disputes: The lack of a clear estate plan can lead to disagreements and conflicts among family members regarding asset distribution.
4. Higher Costs: Legal fees, court costs, and other expenses associated with the probate process may be higher without a Will.
5. No Control Over Guardian Selection: If you have minor children, dying without a Will means that you do not have control over who will be appointed as their guardian.
6. Loss of Opportunity for Charitable Giving: Without a Will, you miss the chance to designate assets for charitable donations or specific causes.

It is advisable to consult with an estate planning attorney to create a Will that reflects your unique needs and preferences, all in the comfort of your own home.