SINGAPORE, July 22, 2024 — Summit Planners recognises that many individuals may face challenges when drafting their Will. Based on their extensive experience, Summit Planners aims to highlight some of the common mistakes found in Wills to help the members of the public better understand the formalities and potential issues associated with a Will.
Appointing a witness who is also the beneficiary
It is common for many individuals to write their own Will to save costs. However, this decision poses the risk of overlooking and arranging the beneficiary as one of the witnesses of the Will, leading to the invalidity of the gift to the witness. In other words, if the witness is also the named beneficiary of the Will, he/she may forfeit the entitlement in the Will.
Neglecting to consider beneficiaries’ characteristics, lifestyle, and needs
Failing to consider the unique circumstances of the beneficiaries may affect them in various ways. The beneficiaries may be dissatisfied with the arrangements, leading to unnecessary disputes. The beneficiaries may also encounter financial difficulties if what you provide for them fails to meet their needs. Additionally, the inheritance may be exhausted quickly if financially incapable beneficiaries are given a vast lump sum instead of periodic payments.
Did not take existing loans into consideration
Often, many individuals may focus on the assets distribution without considering the outstanding debts tied to those assets. After your demise, the beneficiaries may inherit the assets, alongside with the loans. In other words, the beneficiaries will be responsible for the loan repayment even if they are incapable of doing so. Additionally, failing to consider the loan may also complicate the probate process as the executor may have to liquidate your immoveable assets to settle debts.
Too many restrictions and rigid instructions
Having fixed and clear instructions may be beneficial but not optimal, particularly when they leave no room for changed circumstances or needs. Such rigid restrictions may often result in unnecessary stress and missed opportunities. For instance, a testator may include strict provisions for the beneficiary to attend a school of the testator’s choice, failing which the beneficiary will forfeit his/her interest in the Will.
Therefore, it is essential to understand your unique circumstances and anticipate potential issues that may arise before the preparation of a Will.
To raise awareness of the importance of Will Planning, Summit Planners are running monthly Will Planning seminars to encourage the members of the public to take action to ensure that their affairs are well taken care of after their demise.
