PSP 3 - Inheritance PDF

Takeaways Having a valid will allows the testator to choose beneficiaries and determine the distribution of assets. Executors and trustees can be appointed in a will, providing flexibility and control over the administration of the estate. A valid will enables faster and lower-cost probate compar...

Takeaways Having a valid will allows the testator to choose beneficiaries and determine the distribution of assets. Executors and trustees can be appointed in a will, providing flexibility and control over the administration of the estate. A valid will enables faster and lower-cost probate compared to dying intestate. Guardians for infant children can be appointed in a will, ensuring their well-being and care. A will allows for the preservation and proper distribution of family wealth, preventing squandering. Savings on stamp duty can be achieved through a valid will. Executors can commence legal proceedings even before grant of probate has been issued. The remuneration of executors can be set and fixed in a will, providing clarity and control. Andrew Yip (00:03.576) Welcome back, Part B candidates. This is Ko Kok Yao again. And in this section, I\'ll be speaking about the importance of having a valid will by illustrating the advantages of having a valid will when the person passes away as opposed to what happens if he dies in state. Andrew Yip (00:29.614) In this lecture, I will be discussing 14 advantages of hearing in Will. This is of course not an exhaustive list. Please have your lecture notes in front of you as you listen to this lecture. Andrew Yip (00:48.856) The first advantage naturally of having a will is that you, the castrita, has the right to choose its beneficiaries or determine what like to seize. I should like to add firstly, course, this freedom must not apply to Muslims. A person who has made his own world as a free hand, subject only to give all these world\'s Muslims for his dependence, and that is, along by the inheritance family provision of, to decide who his beneficiaries are going to be, then determine their legacies. on the conditions attached to such legacies if he wishes to impose such conditions. On the other hand, as explained in the picture on the Interstate Succession Act, succession to an interstate estate is determined by the provisions of the ISA, and the estate may therefore be inherited by persons who are not deserving or who will get a larger share than those who deserve or need more. Or even by the state, which is called Bonapakensia, under Section 7, Rule 9 of the ISA, where there are no beneficiaries who fall within Section 7, Rule 1 to Rule 8 of the ISA. They not having a will. People who the interstate needs, may have had pursued could be beneficiaries, for example, stepchildren, you will not be entitled to claim a share of clear state. Andrew Yip (02:39.564) The second advantage in having a will would be that the state work, the ability to choose the executor and trustee of one\'s will, and to set the terms of appointment. The executor chosen need not be a next of kin or even a beneficiary. It may be a professional or a trust company, and solicitors can also be appointed as It may be of interest to candidates to ignore that the Law Society\'s professional identity and tools scheme especially provides that claims made against a solicitor in providing services as an executor are also covered under the PIA scheme. The testator\'s choice of executor in a valid world is almost always given effect to a record unless Section Under Section 1 of the Insolvency, Restructuring and Dissolution Act, applies as it disqualifies a bankrupt from being appointed or acting as a personal representative, i.e. executive, except with the leave of the court. The bankrupt would of course have to obtain the approval of the official assignee or the PTIP to make such an application to the court. Then if the complication is made, the court is more inclined to allow the bankrupt to take up this appointment since it was the choice of the estate owner. Andrew Yip (04:24.914) advice on the case of executors. It is important to advise the stable that you should choose an executor who will or is likely to accept the appointment and also have a substitute executor or executors in the event that the first nominated executor refuses to be the executor, i.e. he renounces the appointment or he has died before the testator or he is unable for any reason, for example incapacity to be appointed as the executor. Having a substitute executor means that weight can be applied for and granted to the substitute executors without section 13 of the PAE being applicable or relied upon. Where there is no executor who is willing or able apply for one of full pay, please note that the will still remains valid except for the provisions relating to the appointment and powers of the executors. In such a case, Section 13 of the PAA applies and grant of letters of administration with bill annexed would have to be applied for by the persons who are eligible for such grant. as shown in Section 13, Subsection 2 of the KAA. In such a case, the difficulties and hassles of obtaining a grant of LA with Will Annex would be very similar to a case where there was no will, albeit that after the DLA with Will Annex has been obtained, its stake can be distributed through the will. Andrew Yip (06:28.206) That\'s the advantage of having a will for pain, particularly to people who have stoking for under the age of 21 at the time of their death. If such a person has made a will, he needs to appoint just one executor, and he can also appoint substitute executors, notwithstanding that there is a child or a children under the age of 21 when the estate person passes away. However, when the person who is deceased right in the estate living behind a child or children who are under the age of 21, that at least two administrators must be appointed in this special rule, section 6 of the Public Administration Act. often leads to substantial additional difficulties and inconveniences for the spouse of the deceased. The spouse of the deceased has prior rights to apply for run of LDA, but is seen for key to all needs. cannot find another person to be co -administrator of the estate. It is not easy to find such a person willing to be appointed as co -administrator since it involves onerous responsibilities and there will be no remuneration for the co -administrator who is often not a beneficiary of the estate. Besides, there is a confiscation of a minor and we can\'t just hold small the value of the estate. And even if the application is filed in the family court, securities are required for the administration bond or an application for dispensation of securities has to be filed, then order of court has to be obtained for the dispensation. Andrew Yip (08:38.53) Such additional steps in filing of documents will be costly to the estate, which could have to prevent if the deceased also made a will, as appointed an executor. Another feature to be noted where there are two administrators is that administrators must act out of duty. In comparison, executors may Stabilize. Andrew Yip (09:14.658) The next feature of having a will where executives are validly appointed is that where there is a valid will, the estate will invest in the executives upon the death of the estate. And this enables the executor to handle the issues of affairs subject to production of propate when required. Ordinarily, however, it will be prudent for the executors to only act in relation to their property only after grant of property has been obtained and issued. One, person dies in the estate. The property of the interstate does not invest in the administrators until after letters of administration have been obtained. The interstate Property will flash in when Public Trustee under Section D7 of the Public Administration Act, from the time of the death of the person. In the meantime, the estate will be in the state of limbo until a grant of LA is obtained by the Administrator. Andrew Yip (10:37.09) where a person is made a Will, he can appoint guardians for infant children that he will live with the time at the end of his death. The testator has three choices for appointing Cemetery guardian or guardians. When that guardian appointed under the Will of the deceased, he can act as a comsey with the surviving parent of the infant soul as the other parent remains alive, unless that parent objects to so active in this section 7, guardianship of Infants Act. And even if the surviving parent objects, the Testimony Tree Guardian will apply to court for orders to be made under section 7.4 for the Supermortry Guardian to have rights of Andrew Yip (11:29.615) However, when the person is dying, saving children under the age of 21, the other parent who survives him is the sole guardian, regardless of how the deceased parent may have thought of the ability and suitability of the surviving parent to be the sole guardian. And if both parents have died without the child, then there may be disputes. between the next of kin of both parents to be appointed guardians and thereby control the financials of the Andrew Yip (12:17.26) When a person has made a valid rule, the rule will speak for itself. Then the executor will be able to apply for grant of probate without much hassle. The executor will not need to prove his entitlement to apply, or provide any information about the deceased person\'s remission, or details of his beneficiaries, or those of\... It makes a hint of the case special. There are some exceptions though. If the will was executed on section 4, the court may ask for an affidavit of foreign law to confirm that the formal validity of the rule, i.e. undone section 5 of the Wills Act, was being satisfied. Moreover, if the will was early detected or drafted, especially for Homemade Rules, or if it was not properly witnessed, the Court may ask for an affidavit of due execution in order to satisfy itself that Section 6 of the Rules Act of Finn is finalised. On the other hand, where personal dice interstate a great deal, more information has to be obtained during the instruction -taking process for LA applications. Thus, the applicant\'s entitlement to apply for grant, the deceased\'s religion, custom, personal law, and ages and shame entitlements of the beneficiaries have to be ascertained and confirmed, which leads to delay in applying for the grant and also for the extracting of the form of letters of administration. This is Excercibate if the deceased had foreign domicile as the court will require an affidavit of foreign law by a foreign lawyer. Andrew Yip (14:25.762) For some, the valid rule, the right of croquet can be obtained by the executors faster and at a far lower expense in terms of legal costs and court filing fees. In comparison, in the most strict form of L.A. application cases, if sureties and administration bonds are not required, but since if there are no infant beneficiaries, then the value of the estate is lost of \$3 million, and application is filed in the family court. L.A. applications are much slimmer and more expensive to apply for. because there are more documents that have to be filed for an early application than an appropriate application. fees for early applications are higher. Andrew Yip (15:26.102) As earlier mentioned, the property of the deceased was going to be used with a valid loan, thus it\'s been the executors from the date of his death. Therefore, executors have the power, for the time of the deceased\'s death, to carry on the process of us calling the assets subject to the militations of the actions by the extraction of one of the public of the real Ben Penny. with restrictions called team member work. On the other hand, the pending administrators have no such power until they the grant of L.E. and it is issued both for sealing of door or granting the L.E. Administrators cannot be assured that it is charged for any payments that they collect until and unless the L.E. grant has been obtained. Andrew Yip (16:28.718) The next advantage of having a real death threat, the Chain of Executive principle under Section 25 of the Civil Law Act can apply. This is to say that an executor of a deceased executor steps into the shoes of the deceased executor and complements with the administration of the estate, which has not yet been concluded. executive in some place before completing this. In comparison, where an administrator of an industry has been stigmatized before updating an administration, the beneficiaries will have to apply to the Family Justice Court for a grant debonus loan, which is essentially a fresh application for grant of LA to the Andrew Yip (17:27.758) I will now deal with the requirement for administration bond insurances to the administration bond for grants of better administration. This is only required when the species can block with a will. Where there is a valid will and the Executives prove the will, Section 29 of the Global Administration Act is not applying. In that form, No surety for security needs to be provided when this represents a very substantial cost savings and time savings. In contrast, for applications for grant of letters of administration, and this includes grants of letters of administration with real annex, they should be noted that all applications for LE which are made to the family division of the High Court, i.e. CS, require the Administrator to execute an Administration bond and to provide two sureties unless otherwise ordered by the Court or in order for dispensation of sureties has been granted. For daily applications to the Family Court, meaning FC, if the circumstances of the estate falls within certain classes as set out in the and administration bond and two surreptites are also required to guarantee the administrators\' proper performance of the administration. And the amount to be secured is the gross value of the estate, which will be a substantial sum of Andrew Yip (19:21.43) It can cause hardship and embarrassment to the administrators who have to ask around for people to volunteer to be sureties. Some sureties or would -be sureties would even want to charge a fee to be sureties, and this would have to be then paid out of their state. An application for dispensation of sureties will add to the costs of the application. There shall be additional fees to be paid for filing fees, oath fees, not to mention substantial additional time having to be included before grant can be extracted. Andrew Yip (20:06.082) Having a valid will can enable a testator to plan for the preservation and proper distribution of the family wealth. A testator can in his will stipulate which part, or even the whole of his family wealth, is to be preserved for a period of time and not to be distributed immediately, when this is only subject to the rule against perpetuities and accumulations. This will ensure that the family wealth is not squandered by as On the other hand, if a person dies in state, then the beneficiaries are entitled absolutely to receive their full entitlement under the ISA. Once the estate has been collected in and that has been paid, then the administrator will have no power to delay the distribution. And from the viewpoint of the administrator, he will be in breach of his fiduciary duty. If he does so, unreasonably, Andrew Yip (21:07.106) Having a valid rule enables the chief\'s family to save substantial stamp duty. As the law currently stands, there is no stamp duty payable for the transfer by a cent of a devised property, and this includes chores, to the named beneficiary. Andrew Yip (21:39.554) The persons who are named as Executives of the Will can commence legal proceedings in their capacity as Executives of the deceased estate person even before grant of probate has been issued, provided that they have applied for the grant at the time of the commencement of the proceedings and the grant of probate has been issued at the time that the order or judgment is issued. persons who are acting as administrators, though the legal proceeding can be commenced until after the grant of L.A. has been issued. Andrew Yip (22:22.926) In a will, the testate can set and fix the remuneration of the executor. Although in the absence of an express stipulation in the will, Section 66 of the PAA can also apply. Where a person has done in -tested, the personal representative, including the administrator, can apply to the Court for Correction under Section 66 of the PAA. The amount of the remuneration of commission, if annual, is at the discretion of the judge, and the rate of commission may be as high as 5 % of the value of the assets collected, or it could be nil. For a person who wishes to determine the commission or remuneration that a personal representative is to be entitled, he should therefore make a will. Andrew Yip (23:27.872) In conclusion, with all the advantages of making wills, why is it that many people choose not to make a will? Some clients do not want to make wills because they cannot make up their minds how their estates should be distributed, and they are happy for the ISA to apply to their estate. In light of the many advantages of Tester C which I had discussed, such clients should very strongly encouraged to make a will so that there is an executor who will carry out their wish. Andrew Yip (24:09.312) at the lock. B24 PSP - D. OTHER ISSUES RELATING TO ESTATES - 1\. Inheritance (Family Provision) Act 1966 ("IFPA") - \(a) Scope of application; IFPA does not apply to Muslims (Section 1 IFPA) - \(b) Principles and procedure -- concept of dependent and reasonable provision of maintenance (Sections 2 and 3 IFPA) - **[s3 IFPA - Requirements]** to make IFPA Application? - s4 and s6 IFPA - **[Time]** limits = [ **6 months**] - s3(2) IFPA -Power for court to order payment out of net estate of deceased for benefit of **[surviving spouse or child]** - **[What]** the Court can order under IFPA? - 3(5), 3(6), 3(7), 3(8) IFPA - \(d) Interplay between just and equitable division under the Women's Charter 1961 and reasonable provision of maintenance under the IFPA (AOS v Estate of AOT \[2012\] 3 SLR 721 (CA)) - 2\. Maintenance of Parents Act 1995 ("MPA")