What Happens to Your Assets If You Die Without a Will in Singapore?

This article explains the consequences of dying without a will (referred to as intestate) in Singapore and outlines the distribution process under the Intestate Succession Act. It also addresses whether you could be entitled to an inheritance if a family member passes away without a will.

Summary

If you have a will, the executor you appoint will distribute your assets according to your instructions. However, if you pass away without a will, the distribution of your assets is governed by the Intestate Succession Act, leaving you with no control over how your estate is managed or who inherits it.

This is why we would always recommend anyone in Singapore to write a valid will ahead of time which we will cover in more detail below.

How Are Your Assets Distributed After Death?

The distribution of your assets depends on whether you have left a valid will. A will is a legal document that outlines your wishes for how your estate should be distributed after your death.

Distribution of Assets with a Will

If you die with a valid will, your estate will be distributed according to the terms set out in that will.

• Role of the Executor: The person named as the executor in the will is responsible for managing the distribution process. The executor must apply for a Grant of Probate, a legal document that authorises them to manage and distribute the deceased’s assets.
• Duties of the Executor: Once the Grant of Probate is obtained, the executor will gather all the assets, settle any outstanding debts and taxes, and distribute the remaining assets to the beneficiaries as specified in the will.

Distribution of Assets Without a Will

If you pass away without a valid will, you are considered to have died “intestate.” In such cases, the Intestate Succession Act dictates how your estate will be distributed among your surviving family members, effectively leaving these important decisions to the state.

Why Make a Will?

Creating a will is crucial because it allows you to decide who will manage your estate and who will inherit your assets. Without a will, these decisions are made in accordance with the law, which may not align with your personal wishes or family dynamics.

What Happens to Assets If a Person Dies Without a Will?

(1) Assets Are Frozen

When someone dies, all their assets are immediately frozen. This means no money can be withdrawn from their bank accounts, properties cannot be sold, and securities cannot be transferred. To access these assets, the deceased’s next of kin must apply to the court for Letters of Administration.

Common scenarios where probate or Letters of Administration are required include:

• Solely owned HDB flats or private properties
• Bank accounts solely in the deceased’s name
• Insurance policies requiring proof of probate
• Shares or vehicles that need to be transferred or sold

(2) Application for Letters of Administration

The deceased’s closest next of kin, usually the spouse or eldest child, should engage a probate lawyer to apply for a Grant of Letters of Administration. This is a court order that appoints the next of kin as the personal administrator of the estate, giving them the authority to collect assets, pay off debts, and distribute the remaining assets to the beneficiaries.

Order of Priority: The Intestate Succession Act specifies the order of priority for who can apply for Letters of Administration:

1. Spouse
2. Children
3. Parents
4. Siblings
5. Nephews and nieces
6. Grandparents
7. Uncles and aunts

The court will assess the applicant to determine who is most suitable to manage the estate and will grant the Letters of Administration accordingly.

(3) Payment of Debts and Liabilities

The appointed administrator is responsible for compiling a list of the deceased’s assets and using them to pay off any outstanding debts, taxes, loans, and other financial obligations. This may include bank loans, credit card debts, and utility bills.

(4) Distribution of Assets According to the Intestate Succession Act

Without a will, the estate will be distributed in accordance with the rules set out in the Intestate Succession Act. The distribution is as follows:

If Survived By:

• Spouse but no children or parents: Spouse inherits everything.
• Spouse and children: Spouse receives half; the children share the other half equally.
• Children but no spouse: Children inherit everything equally.
• Spouse and parents (no children): Spouse receives half; parents share the other half equally.
• Parents but no spouse or children: Parents inherit everything equally.
• Siblings but no spouse, children, or parents: Siblings (or their children) inherit everything equally.
• Grandparents but no closer relatives: Grandparents inherit everything equally.
• Uncles and aunts but no closer relatives: Uncles and aunts inherit everything equally.
• If No Surviving Relatives: If there are no eligible relatives, the entire estate will be transferred to the Singapore government.

The administrator is legally obligated to follow these rules when distributing the estate among the surviving family members.

Seek Professional Help from an Estate Lawyer

Dealing with a loved one’s estate can be a complex and emotionally challenging process. Engaging a probate lawyer can help guide you through the necessary legal procedures, such as applying for a Grant of Probate or Letters of Administration.

Our experienced probate lawyers provide compassionate and professional assistance to clients who have lost loved ones. We handle all aspects of estate administration, ensuring a smooth and efficient process during a difficult time.

By including these elements, the revised content better aligns with the legal framework in Singapore and provides a clearer, more detailed guide for readers on the consequences of dying intestate.