Estate Matters and Distribution of Assets — Part 1
This is the first part of our four-part series, where we will introduce you to Grants of Representation, including Grant of Probate, Letters of Administration, and the Resealing of a Foreign Grant.
GRANTS OF REPRESENTATION
A Will informs your beneficiaries your wishes for the distribution of your assets.
However, in most cases, your executors or administrators will still need a Grant of Representation to distribute the assets.
In Singapore, the different types of Grants of Representation are:
1. Grant of Probate – where there is a Will
2. Letters of Administration – where there is no Will
3. Resealing of a Foreign Grant – where a Grant has been issued by a Commonwealth country (example, Malaysia)
Estate Bank Account
Upon obtaining a Grant of Representation, the executors or administrators will be required to open an estate banking account for the funds to be transferred into.
This also helps to ensure that the funds are properly accounted for and distributed.
These processes will be further discussed in our subsequent posts.
OTHER ASSET DISTRIBUTIONS
Approaching the Public Trustee
Other than the above Grants of Representation, the Public Trustee also has the discretion to administer the estates of deceased persons, where the value of the estate does not exceed $50,000.
Typically, beneficiaries may want to approach the Public Trustee where the assets are not major, and the distribution is not complicated.
Central Provident Fund (CPF)
Not all assets may be dealt with via a Will and/or Grant of Representation.
The Public Trustee is the exclusive administrator of the CPF belonging to deceased persons.
Distribution of CPF will go according to either, (1) nomination, if there is a nomination, or (2) the Intestate Succession Act (Cap. 146).
Even if there are provisions in a Will that deals with CPF, such provisions will not take effect.
The Public Trustee also holds on trust CPF for minor beneficiaries who are below 18 years of age for nominated beneficiaries, and 21 years of age for unnominated beneficiaries.
Insurance
Insurance proceeds are generally dealt with via a revocable or non-revocable nomination with the insurance company. This is typically the fastest and easiest method to obtain insurance payouts.
Distribution clauses in a valid Will pertaining to insurance proceeds will take effect in the event a nomination was not made.
Stay tuned for the next few parts of this series, where we dive deeper into each topic on the Grant of Probate, Letters of Administration and Resealing of a foreign grant. Don’t miss out on the valuable insights and practical tips coming your way.
Be sure to check back soon!
