Who can execute a will?
Q I FOUND the article ‘The best thing you can leave behind’ (Sunday Times, Jan 22) very informative.
Can you please enlighten me on one aspect of a will document?
An executor/trustee is authorised to distribute the assets of the deceased.
Does my executor/trustee have to be someone who has access to my financial information?
Who is eligible to be an executor and trustee?
If this person is a friend, how can he/she legally instruct those concerned to distribute my assets?
A The executor/trustee is the person named in a will to be in charge of winding up the person’s financial affairs after death.
This means this person, who has to be above the age of 21, has to be responsible for taking care of property, paying bills and taxes, and ensuring that your assets are transferred to their new rightful owners.
In some cases, this person has to resolve disputes as well.
If there are minor beneficiaries - that is, people under the age of 21 - named in the will, there should be at least two executors who would be able to hold any assets, or invest them, or use any money for the benefit of the minors.
Even though most executors do not need special financial or legal knowledge, you still need to exercise care in choosing your executor.
While it is ideal to have someone who is familiar with your financial affairs, it is not mandatory.
The main requirements are common sense, conscientiousness, honesty and an ability to communicate with people.
If possible, name someone who lives close by and preferably not someone who spends most of his time out of the country.
That will facilitate the probate process and reduce delays.
Most people name their spouse or an adult child as their executor(s).
Many people select someone who will inherit a substantial amount of their property.
This makes sense because such a person is likely to do a conscientious job of managing your affairs after your death.
He or she may also know where your records are kept and understand why you want your property left as you have directed.
In any case, executors can - and usually do - hire lawyers, accountants, or other experts to assist them, and pay them from the assets of the estate.
Regardless of who you pick, make sure the person is willing and able to do the job.
It is best to discuss it with them before your will is finalised.
Bernard Lim Financial services director Prudential Assurance Singapore
Q I AM one of the beneficiaries of my late father’s estate. How can I check that the administrator or executor of the estate distributes the estate properly?
I have no access to the insurance policies my late father owned. I believe that some of these policies fall under Section 73 of the Conveyancing & Law of Property Act and, if this is the case, I shall be entitled to a share of the insurance payout.
The probate was completed last year. I did not receive any insurance payout.
I would be grateful for advice on how to proceed on the above.
A If you are one of the beneficiaries of your late father’s estate, you can apply to the court for access to the court files relating to the extraction of the Letter of Probate/Administration of your late father’s estate.
>From the court records, you can ascertain the extent of your beneficial interest as well as details of the Section 73 policies taken out by your late father.
As a beneficiary, you also have the right to call upon the executor - or the administrator if there is no will - to furnish accounts for your inspection.
Where no or insufficient accounts are furnished by the executor/administrator, the court may order proper accounts to be furnished to you.
An executor/administrator is personally liable to the beneficiaries for all breaches of trust that arose from his office - for example, misuse of the deceased’s assets as by converting to his own use, maladministration and/or negligence.
Lie Chin ChinPartner Lie Kee Pong Partnership
Q I BOUGHT my first HDB flat on the resale market with an HDB concessionary loan.
Do the Valuation Limit and Available Housing Withdrawal Limit apply to me?
A Yes. Both limits will apply to you in the following manner:
Valuation Limit - This is the lower of the purchase price or the value of the property at the time of purchase.
You may use all your CPF savings in your Ordinary Account towards the purchase and to service the housing loan up to the Valuation Limit of the flat.
Available Housing Withdrawal Limit - If your housing loan is still outstanding when your total CPF withdrawal for the flat has reached the Valuation Limit, you must first set aside the prevailing Minimum Sum cash component before you can use any excess in the Ordinary Account to pay the housing loan.
Savings in the Special Account - including the amount used for investment - and Ordinary Account can be used to meet the prevailing Minimum Sum cash component.
HDB flats financed with bank loans will be subject to a further limit which is the CPF Withdrawal Limit. This limit is the maximum amount of CPF one can use for the property.
Currently at 132 per cent of the Valuation Limit, it will gradually decrease to 120 per cent by 2008.
For more details on the three housing limits, please visit the CPF website at www.cpf.gov.sg
Chang Long KiatDirector (Housing and Health care)CPF Board
Advice provided in this column is not meant as a substitute for comprehensive professional advice.
Source : Sunday Times - 29 Jan 2006
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