Segregation of Personal Monies with Estate/Trust
One of the most common issues for the individual executor or trustee is the failure to identify, divide and segregate the assets accordingly from the deceased’s estate account and their personal account.
This is especially so if the individual trustee needs to manage the estate monies and properties for young children & vulnerable elderly beneficiaries for many years, even up to decades. If the individual executor or trustee passes away before completing the estate administration process , the estate of the deceased may be mixed with the individual executor’s estate.
Keeping Record of Estate Account
Another problem is the failure in keeping proper accounts and records of the deceased’s estate. The executor or trustee is required to keep records of the estate account to show the in-flow and out-flow of monies and assets received under the deceased’s estate. Failure in rendering a proper estate account could lead to legal action and the estate monies could also be depleted due to unnecessary administration expenses and legal fees.
Conclusion
Appointing a trustworthy, accountable and unbiased party to act professionally as the executor or trustee has become a serious concern for most people. When a person writes their Will, they should consider appointing a professional trust company as the main Executor or the substitute Executor in cases where the main Executor is unable or incompetent to act.
Recent Estate Administration cases by Precepts
- Challenging the validity of a forged deed of revocation and obtaining forensic reports relating to authenticity of signatures on documents.
- Successful claim for damages in reported decision in medical negligence in high profile case.
- Estate administration involving mediation convened at the Singapore Mediation Centre with a view to settlement.
- Settlement of estate duties with the IRAS for deceased person dying intestate prior to 2008.
- Dealing with and payment of estate and trust income taxes to the IRAS.
- Application for Beddoe orders prior to litigation.
- Application of Benjamin orders where beneficiaries are presumed to be missing or deceased.
- Appointment as administrators to sell real estate assets and distribution of joint property owned by deceased and a mentally incapacitated co-tenant.
- Administration of insolvent estates and distribution according to the First Schedule of the Rules as to Payment of Debts Where Estate Is Insolvent under the Probate and Administration Act.
- Administering estate with family disputes involving an Eviction Order and Write of Possession.
- Distribution of estate property to the deputy/administrators of beneficiaries who are mentally incapacitated or deceased.
- Sale of private residential properties as part of trust administration in Singapore and Malaysia.
- Transmission of title of assets of deceased’s estates relating to real estate and company shares to beneficiaries.
- Administration of estate with overseas properties in Cambodia, Hong Kong, Thailand and etc.
- Appointment as administrator through Letter of Administration De bonis Non.
- Estate administration relating to deceased persons dying domiciled in Singapore and resealing of Probate in Malaysia.
- Estate administration relating to deceased persons dying domiciled in Malaysia and taking up probate in Hong Kong.
- Estate administration of deceased dying due to unnatural cause with difficulties claiming from relevant insurer.
- Handling estate with tax disputes and management of the tax liabilities.
- Involvement in citation proceedings relating to upholding validity of a Will.
- Purchase of Residential Property as trustee for occupation by estate beneficiary in exercise of powers under S12(3) Trustees Act and setting up of property trusts.
- Provision of loan upon security of charge over property to estate beneficiary in exercise of powers under S9 Trustees Act.
This article is first published on our newsletter, The Custodian Issue 7 on October, 2017. Click here to subscribe to our latest newsletter.
