Why I decided to write my will

May 4, 2008

small change

Why I decided to write my will

By Lorna Tan Finance Correspondent

Death is inevitable, but we prefer to believe that it will not happen to us today or tomorrow. As a result, many of us choose not to dwell on it.

You may think I am paranoid. But in my case, I like to plan ahead and this means putting my financial affairs in order so that the person tasked with administering my estate or everything I own - when I am no longer in this world - will find it as hassle-free as possible.

For a start, I have a Microsoft Excel spreadsheet that lists all my assets and liabilities. It includes details of bank accounts, insurance policies, stocks, investment portfolios and properties. I review it from time to time and always update it before any overseas trip.

The spreadsheet is backed up in a thumb drive and kept in an accessible location in the house together with my insurance plans, investment files and my will, which is registered at the Wills Registry.

I also made a fresh nomination on my Central Provident Fund (CPF) savings after my marriage. This is because nominations made prior to one's marriage are automatically invalidated after a marriage. Furthermore, the distribution of CPF savings after a member's death is not covered by wills. Do note that CPF nominations do not include CPF savings put into investments, but they do include CPF funds held in fixed deposits with banks.

I made it a point to remind a close friend where these items can be found just in case both my husband and I kick the bucket at the same time.

All this started when I was saddled with the morbid thought of dying. It had crept up on me one day when I realised that I would be on the same plane as my husband, flying from Singapore to India.

We were working for different multinational corporations then and in that particular instance, nine years ago, we were travelling together but on separate business trips to Mumbai.

My immediate concern was who would be the guardians of our two children if the plane went down and both my husband and I perished.

Who would the children live with and to whom could I entrust my assets and investments till they reached the age of 21? How could I ensure that my parents, whom I support financially, would have enough money after my demise?

My husband and I promptly made an appointment with a lawyer to make a will each.

I thought it would be a quick and painless visit involving some paperwork, but I was wrong.

I got all worked up and very upset in the lawyer's office because my husband and I could not see eye to eye on what would go into the wills.

With hindsight, it would have helped if both of us had talked through a checklist of things that are typically included in a will before we trooped down to the lawyer's office.

To give you an idea, here are some of them:

· Appointing suitable personal representatives who will take charge of your estate and distribute it according to your will;

· Deciding what to do with assets such as properties, investments, insurance proceeds and cars, after your death;

· Appointing guardians for young children; and

· Gifts to relatives, friends and charitable organisations.

Although a will can be withdrawn and altered at any time, it pays to get yours right as the future well-being of your family may depend on it. A badly written will could create lasting unhappiness and grief.

The advantages of having a will and the peace of mind that it brings definitely outweigh the cost. In my case, I paid about $250 for mine.

If I die without a will, my estate will be distributed according to intestacy rules. Under these rules, my estate will be shared between my husband and my children.

I have since reviewed my will twice and will continue to review it regularly.

Till today, what my lawyer said as my husband and I were leaving her office after our wills had been done up is still etched in my mind.

Winking her eye, she whispered to me that the best part of making wills was that no one needed to know what the contents of my will were, and if I chose to make a new will one day, it would supersede the one she had just helped me make.

lorna@sph.com.sg


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WHEN YOU DON'T HAVE A WILL

If I die without a will...

My estate will be distributed according to intestacy rules.

Under these rules, my estate would be shared between my husband and children.

If I were childless...

Half of my estate would go to my husband and half to my parents.

If I were single and childless...

My parents would inherit my estate equally. In the absence of my parents, my siblings would inherit my estate, but if they were deceased, their children would be next in line.

If I had no siblings...

My grandparents would be my beneficiaries.

And in their absence, my estate would be divided among my uncles and/or aunts.

If I had no uncles or aunts...

Then everything I had would go to the Government.



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