Why a Simple Will May Do More Harm Than good?
Many people ask for just a simple Will for their Estate Distribution, thinking that they do not have much assets to begin with. However, estate distribution is more than just about distribution your assets.
It’s more than do with how you intend to take care of your loved ones or beneficiaries when you are gone.
To do that, a simple Will may not be adequate. In my practice with Clients consultations, here is what I’ve learned – the potential issues with a simple Will.
#1 Limited Scope
For most people, a straightforward distribution of assets might suffice. However, they do not account for all possible scenarios.
For instance, overseas assets (movable or immovable) or complex business interests require more specific instructions for disposal or distribution.
#2 Complex Family Dynamics
Today, it is getting more common to see families with children from previous marriages. For some, there may also be family members who have already relocated overseas.
For families with such scenarios, a Simple Will may not adequately address the distribution of assets for the beneficiaries. Also, if not addressed appropriately, this may potentially lead to disputes or unintended consequences upon the deceased’s passing.
#3 Legal Technicalities
The Will is deemed as valid, only if it meets the formalities of the Will.
Failure to comply could result in the Will being deemed invalid or contested, leading to delays and unnecessary costs and stress imposed upon your beneficiaries.
#4 Debts and Liabilities
As of writing, there are no estate duty taxes in Singapore. However, there can be taxes associated with transfer of properties or other forms of assets. Also, if there are debts and liabilities, or if the deceased acts as a personal guarantor, these also need to be addressed when doing up the estate plan.
Proper estate planning can help to minimise the leakages, and maximise the inheritance received by the loved ones.
#5 Changing Circumstances
For most people, their life circumstances will change over time, including changes in family relationships, financial situations, or assets ownership. The Simple Will may not be flexible enough to accommodate these changes without requiring frequent updates or amendments.
Concluding Remark
While a Simple Will might possibly be sufficient for some individuals, seeking professional advice can help ensure that your Will accurately reflects your wishes and addresses any potential pitfalls or complications.
