Do I need a will?

[toffee bread]

My insurance agent is recommending everyone to get a will. He mentions that making will, it seems..is MUCH cheaper than getting legal assistance to get Letter of Adminstration from Courts to unlock deceased's bank and insurance policies. Also the Intestate Succession Act is more of a hassle than help too.

Anyone around with experience in getting a will done?

[cervello]

From my limited knowledge from work:

If die without a will.... need to get Letter of Administration from the Courts. May need to spend 3+K for lawyer for legal representation to get this letter to unfreeze bank accounts, assets, essentially anything to do with the deceased's name. Insurance also limited to first $150K from any single insurer too.

If die with it... just need to produce Will to get Grant of Probate from the Courts. Doesn't seem to have any extra major cost associated with it, nor the above caveats. Spend MUCH less time waiting for dilly-dallying for a Court approval to access the estate or assets of the deceased.

More from anyone?

[Poseidon]

Moved to legal discussions where hopefully better discussion can follow on this topic.

[Beagle]

Other than the issues about possible increased costs and trouble, the main reason for having a will is to ensure that your assets upon death, are distributed in a way which you want them to be; rather than to be subject to the Intestate Succession Act; which may not distribute it the way you intended.

The distribution formula under the Intestate Succession Act are as follows:

Rule 1
If an intestate dies leaving a surviving spouse, no issue and no parent, the spouse shall be entitled to the whole of the estate.

Rule 2
If an intestate dies leaving a surviving spouse and issue, the spouse shall be entitled to one-half of the estate.

Rule 3
Subject to the rights of the surviving spouse, if any, the estate (both as to the undistributed portion and the reversionary interest) of an intestate who leaves issue shall be distributed by equal portions per stirpes to and amongst the children of the person dying intestate and such persons as legally represent those children, in case any of those children be then dead. Proviso No. (1) — The persons who legally represent the children of an intestate are their descendants and not their next-of-kin. Proviso No. (2) — Descendants of the intestate to the remotest degree stand in the place of their parent or other ancestor, and take according to their stocks the share which he or she would have taken.

Rule 4
If an intestate dies leaving a surviving spouse and no issue but a parent or parents, the spouse shall be entitled to one-half of the estate and the parent or parents to the other half of the estate.

Rule 5
If there are no descendants the parent or parents of the intestate shall take the estate, in equal portions if there be two parents, subject to the rights of the surviving spouse (if any) as provided in rule 4.

Rule 6
If there are no surviving spouse, descendants or parents, the brothers and sisters and children of deceased brothers or sisters of the intestate shall share the estate in equal portions between the brothers and sisters and the children of any deceased brother or sister shall take according to their stocks the share which he or she would have taken.

Rule 7
If there are no surviving spouse, descendants, parents, brothers and sisters or children of such brothers and sisters but grandparents of the intestate the grandparents shall take the whole of the estate in equal portions.

Rule 8
If there are no surviving spouse, descendants, parents, brothers and sisters or their children or grandparents but uncles and aunts of the intestate the uncles and aunts shall take the whole of the estate in equal portions.

Rule 9
In default of distribution under the foregoing rules the Government shall be entitled to the whole of the estate.

There was also an article published in the Straits Times on 13 June 2010 which gives a very relevant writeup on this issue, as well as the advantages of making a will. Do take a read if you are interested in this subject.

[cervello]

Anyone has a clue about the options:

Do Will -> Faster to get Grant of Probate -> Unlock frozen assets faster PLUS lower cost at point of death?
No Will -> Slower to get Letter of Adminstration (or even kenna contested for it) -> Take longer time to unlock assets PLUS might incur higher lawyer's representation fees?

[Juggernaut]

Managed to scan the ST Article here:

[kerpalz]

do get a will. coz when my dad suddenly passed away.

kenna contested for Letter of Adminstration -> Longer time (freaking 1 year plus ) to unlock assets
High lawyer fees (6K plus) as my lawyer need to retrieve my dad's overseas investment and etc etc. so not worth it after we found out that the investment is not much.
Amount is only near to the lawyer's fees.