If you are interested in learning more about appointing an Executor, you can refer to this article.
Are you a named Executor of a Will in Singapore? Being named as an Executor means you’ve been trusted to manage the estate of someone who has passed away, making sure their final wishes are followed. The term “estate” doesn’t just refer to property—it includes everything the person owned, such as money, personal belongings, and investments.
Your role involves applying for a legal document called a Grant of Probate, which gives you the authority to act on behalf of the deceased. After that, you’ll need to gather and manage the estate’s assets, settle any outstanding debts or taxes, and distribute the remaining assets to the beneficiaries as specified in the Will.
While this responsibility can be rewarding, it comes with many challenges. If things aren’t handled properly, it could lead to legal or financial issues. That’s why it’s important to be aware of the common mistakes Executors make and how to avoid them.
15 Common Mistakes to Avoid
Neglecting Digital Assets
With the increasing importance of digital estates, ensure that online accounts and digital assets are addressed and managed according to the Will and/or legal standards.
Missing Application Deadlines
Failing to apply for the Grant of Probate within 6 months can delay the entire probate process and lead to legal complications. It’s essential to submit this application promptly after the testator’s (the person who made the Will) death.
Failing to Notify Authorities and Creditors
Ensure you inform all relevant authorities, banks, and creditors of the person’s passing. In Singapore, creditors must have the opportunity to claim any outstanding debts before asset distribution.
Not Securing Estate Assets
Immediately secure all estate assets to prevent loss or theft. This includes managing properties and financial accounts to protect them for the beneficiaries.
Distributing Assets Prematurely
Assets should only be distributed after obtaining the Grant of Probate and settling all debts and taxes. Premature distribution can result in personal liability if the estate is later found insufficient to cover outstanding obligations.
Inadequate Record-Keeping
Be sure to maintain detailed records of all estate-related transactions and communications. This transparency protects you from potential disputes or claims of mismanagement.
Poor Communication with Beneficiaries
Keep beneficiaries informed with regular updates about the estate’s distribution progress to manage expectations and reduce the likelihood of disputes.
Overlooking Tax Obligations
Ensure all necessary income tax returns and estate taxes are filed with the Inland Revenue Authority of Singapore (IRAS). Neglecting these responsibilities can lead to fines & in serious cases, jail time.
Not Seeking Professional Help
Consider engaging probate lawyers or accountants for guidance. Their expertise can help you navigate complex legal and financial aspects of estate administration.
Misinterpreting the Will
Carefully read and understand the Will’s terms to ensure the deceased’s wishes are accurately followed. Misinterpretations can lead to disputes among beneficiaries. Appointing a corporate Executor can help avoid these issues, as they have the expertise to interpret complex Wills and ensure everything is carried out according to legal standards.
Ignoring Estate Liabilities
Don’t overlook any outstanding debts or liabilities. Clear all financial obligations to prevent any legal issues that may arise after distribution.
Failing to Close Accounts
Remember to close the deceased’s bank and other financial accounts after settling the estate. This step prevents fraud and identity theft.
Mismanaging Beneficiary Expectations
Be clear and realistic with beneficiaries about what they can expect. Mismanaged expectations can lead to dissatisfaction and potential challenges.
Not Valuing Estate Assets Accurately
Ensure all assets are professionally appraised to determine their accurate market value. Incorrect valuations can affect distribution fairness and tax assessments.
Overextending Personal Time and Resources
Recognise the extensive commitment required for Executor duties. Overextending yourself may lead to burnout and mistakes. Consider delegating or seeking assistance.
Conclusion
Acting as an Executor in Singapore requires careful attention to detail, patience, and a thorough understanding of your legal duties. By avoiding these common mistakes, you can uphold the deceased’s final wishes and manage their estate effectively, ensuring a smooth process for all involved parties. Seeking professional guidance and maintaining clear communication with all stakeholders are crucial steps to navigating this responsibility successfully.
Disclaimer: This article provides general information and should not be considered legal or financial advice. Please consult with qualified professionals for personalised guidance tailored to your specific circumstances.
