Making a Will for Foreigners in Singapore

With attractive investment opportunities, a stable economy, and high quality of life, Singapore is popular among expatriates and foreign investors. Many of you may even choose to make Singapore your long-term residence or build a family here.

Therefore, it is important to understand the legal aspects of estate planning, particularly when it comes to drafting a will. If you have assets in Singapore, creating a Singapore-specific will can provide significant benefits.

Why Do Foreigners Choose to Make a Will in Singapore?

Assets in Singapore

If you hold valuable assets in Singapore as a foreigner, such as bank accounts, private property, or business interests, a local will ensures each of these assets are accounted for and that they are distributed according to Singaporean law where applicable. It also helps you express your intentions clearly, reducing the risk of delays or legal complications in distributing your assets, especially if you have assets in other countries too.

Freedom to Choose Executor

Singapore gives you the flexibility to choose your own executors to administer your estate and carry out your will’s instructions.
This allows you to appoint trusted individuals to handle the administration of your estate. This flexibility ensures that your estate will be in the hands of someone familiar and trustworthy.

Simplifying the Probate Process with a Local Will

By creating a separate will for each country where your assets are located, your executors or beneficiaries can commence a Grant of Probate application or start administering your assets in each country simultaneously, depending on the jurisdiction. A local will that addresses only Singapore-based assets will help streamline the administration of your estate, reducing potential complications for your executors and beneficiaries while ensuring compliance with local laws.

Control Over Distribution of Assets

By drafting a Singapore-specific will, your Singaporean assets can go to the people or causes that matter most to you. It also prevents your assets from being subject to intestacy laws if you do not leave a will.

What Happens if You Don’t Leave a Will?

If you do not leave a will, Singapore’s intestacy rules, governed by the Intestate Succession Act 1967, will dictate the distribution of your estate. Your assets will be passed on to your family members according to a specific hierarchy established by law.

It is important to note that Singapore’s intestacy laws only expressly recognize legitimate children and children who have been legally adopted on paper. This means that if you have stepchildren or other dependents who are not legally adopted, they may not be entitled to inherit from your estate, which could lead to disputes or misunderstandings among family members.

In cases where there are no living relatives to inherit your estate, the government will take possession of your assets. This situation underscores the importance of having a will, as it allows you to specify your wishes for your estate rather than leaving it to the state’s discretion.

For individuals who are not domiciled in Singapore but have assets in Singapore, the distribution of these assets will be managed by the Singaporean courts subject to the intestacy laws of your domicile instead.

In summary, failing to leave a will can complicate the distribution of your assets in Singapore, potentially creating a disadvantage for certain family members and leading to unintended consequences for your estate.

Does Singapore Recognise Wills Made By Foreigners?

Yes, Singapore recognises wills made by foreigners, provided they meet the necessary legal requirements and formalities. This recognition is rooted in Singapore’s commitment to upholding the principles of testamentary freedom, allowing individuals to dictate how their estates will be distributed after their death.

The validity of a will in Singapore is addressed in sections 5 and 6 of the Wills Act 1838. A will is considered to be properly executed if it meets the legal requirements of one of several jurisdictions, including:

• The place where the will was executed,
• The country where the testator was domiciled at the time of execution or death,
• The territory of habitual residence, or
• The state of which the testator was a national during those times.

For a will to be valid, it must be signed at the end or foot by the testator or if the testator is unable to due to a disability etc., by someone acting on their behalf, in their presence and at their direction. Importantly, this signature must be acknowledged in the presence of two or more witnesses, who are neither beneficiaries nor the testator’s spouse, and who must also sign the will in the testator’s presence.

Therefore, wills made overseas are recognised in Singapore. However, it is recommended that foreigners with assets in Singapore consider drafting their wills locally. This is because the probate process for assets in Singapore is more straightforward when a will complies with local laws. Local courts and administrators are familiar with Singapore’s legal procedures, which can expedite the administration of the estate. In contrast, a will made abroad may require additional steps, such as ensuring the will was executed according to the law of the country it was made in or initiating fresh probate proceedings in Singapore, which can prolong the process and increase costs.

Foreigners can also serve as witnesses to the execution of a will in Singapore, provided they meet the requirements of being of sound mind and are not beneficiaries or the spouse of the testator.

Additionally, Singapore also recognises foreign executors. However, they must meet certain criteria: they need to be at least 21 years old, of sound mind, and not an undischarged bankrupt. This was established in the case of Peters Roger May v Pinder Lillian Gek Lian [2006] SGHC 39, where the executor was an English solicitor residing in England.

Nonetheless, it is recommended that you appoint a local executor and have local witnesses for ease of communication. Executors need to interact with courts, banks, and other institutions. A local executor is better equipped to attend to these matters in person and handle dealings with Singaporean authorities.

A local witnesses can more easily testify in court if the validity of the will is challenged. On the other hand, foreign witnesses may be unwilling or unable to travel for court proceedings. This can lead to complications or additional costs for remote testimony.

What Should Foreigners Consider When Drafting a Will in Singapore?

Domicile

The word ‘domicile’ has been thrown around the article a lot. Do you know what it means or the implications behind it?

Domicile plays a crucial role in determining how your assets will be distributed upon your death. It is a legal concept linking you to a specific legal system that governs your relationships, including inheritance.

When someone passes away, their movable assets (like money, cars, and personal belongings) are distributed according to the laws of the country where they are domiciled. On the other hand, their immovable assets (such as land and buildings) are subject to the laws of the country where the property is located. This occurs whether a valid will exists or not.

Even when you have a Singapore will, your wishes might not be followed accordingly. This can occur if, for instance, you are domiciled in a country with forced heirship laws. In such cases, heirs who are legally entitled to a portion of your estate can challenge its distribution.

For example, Sophie, a French national domiciled in France, tries to leave her entire estate in Singapore, including her Singapore condo and bank accounts, to her friend in her will. However, as she may be subject to France’s forced heirship laws, her children may be entitled to a fixed share of her estate, even though her will says otherwise. French law will ensure her children receive this share, but Singapore law (which does not have forced heirship rules) will govern her immovable property, meaning her condo might still follow her will’s instructions.

However, if Sophie is domiciled in Singapore instead, her estate will be distributed according to Singapore law, which is likely to honour her wishes for her friend to inherit the condo and bank accounts.

However, as domicile is a complicated topic, different jurisdictions may have different definitions of it. It will not be surprising that lawyers may have differing opinions about your situation. It is best to seek professional legal advice from experts in both jurisdictions. This ensures that your estate planning aligns with your intentions and legal requirements.

Inheritance Tax

There is no inheritance tax in Singapore. Therefore, your beneficiaries can avoid double taxation.

It is essential to know your domicile’s tax rules to inform your beneficiaries of potential liabilities when inheriting assets abroad.

Should You Make a Global Will Instead?

In cases where you have assets in multiple countries, you can create a single will known as a Global Will. It is a will that addresses all assets worldwide.
However, it is generally not recommended to create a Global Will. This is especially if the assets are located in both common law and civil law countries, due to differing laws. Navigating these differences will take time, money, and effort, as a Global Will must be proven in multiple courts sequentially.

There is a risk of having a Grant of Probate/Letters of Administration issued in a common law country be rejected by a civil law country. In such a scenario, you will likely be treated as having died without making a Will. Your overseas property will be subject to the inheritance laws of whichever jurisdiction your property is located in.

If you hold assets in Commonwealth countries, you may benefit from the resealing of a Grant of Probate. This process allows a probate grant issued by one country’s courts to be recognized by another country’s courts. It enables the executor to manage the deceased person’s assets in the second jurisdiction without a probate application process. This is because Commonwealth countries follow the common law legal system.

If you have assets in these related Commonwealth countries, you might choose to consolidate them in one will. It is worth noting that this will can be resealed multiple times, but only by different jurisdictions. This can help streamline the management of your estate across borders.

How to Draft the Will?

We suggest engaging a lawyer with expertise in international estate planning or cross-border inheritance law. They can help you draft a will or multiple wills dealing with the different assets in multiple jurisdictions. If you have wills for different jurisdictions, it is important to ensure that they do not invalidate each other.