Wills & Estate Planning

I was arranging my files in office and discovered some notes that I have received from a seminar in mid 2007 by a lawyer. This should be an important reminder to note down :-

RATES OF ESTATE DUTY:
Exemptions
(1) Residential Property $9million
(2) Movable Property (including CPF money) = $600,000
(3) CPF funds in excess of $600,000, the entire amount is exempted and no further exemption for movables.

• Tax Rates and Interest on Estate Duty is 5% for every dollar of the first $12million
• 10% for every dollar exceeding $12 million
• 0% for the 1st 6months after death
• 6% on the unpaid estate duty for the 6months after death to payment
• 12% on the unpaid estate duty for the 18months after death to payment

WHAT HAPPENS ON DEATH?

Deceased WITH a Will? Executor under the Will applies to Court for Grant o Probate. Payment of Estate Duties before extraction of Grant. Calls in and converts the assets into cash and /or distributes cash/assets accordingly to Will.

Deceased WITHOUT A Will?

• Next of Kin applies to Court for Grant of Letters of Administration
• Payment of Estate Duties before extraction of Grant
• Provides sureties for the gross value of the estate
• Calls in and converts the assets into cash and/or distributes cash/assets according to Intestate Succession Act

AVOIDING ESTATE DUTY?

Measures : (1) Buy residential property (2) Trusts (3) Inter Vivos Gifts (4) Life interest for spouse (5) Family or Holding Companies

Insurance (1) S73 Trust Policies (2) Other policies: note S61 of Insurance Act on payment of all life and personal accident policies issued by insurer without Probate or Letters o Administration.