Q: I hate lawyers. I heard from a friend that dealing with his friend’s father’s estate was so expensive and horrible that lawyers had to be involved . I don’t want to cause my loved ones the anguish and the indecency of having to engage lawyers when I pass away. What can I do to have a totally fuss free and painless death?
A: People were living fine before there were lawyers, but such simple times are hard to find these days.
#1: Don’t own anything.
It’s obvious that if you don’t have anything under your name, no one is going to be too bothered when you pass away.
The fundamental reason why you need to go to a lawyer or to the courts when someone dies is because you need to deal with their assets. The law is meant to protect your assets for the people who are supposed to benefit from them. If there are no assets to deal with it, there is no need to go to a lawyer or the courts.
Of course this nugget of truth is meant to convey something more than being an ascetic.
Giving away your stuff while still alive would generally mean that there would be less for someone else to contend with when you are dead. Less stuff means less greed. You might even be able to get the government to act for you.
This is especially the case for small estates who want to give to charity. Finding someone who would give your hard earned money to the charity you wanted on your behalf can be difficult and embarrassing (why didn’t he give this money to us instead?). It is best to avoid these difficulties by being generous when you are alive, in which case your generosity would have been more rewarding.
#2: Put everything in joint names
Old grannies have a practice of putting monies in joint bank accounts, usually in the names of themselves and their child. They would then split the monies by depositing whatever they want into these bank accounts.
The operation of survivorship kicks in once granny passes away. Automatically, without the need for a will or an application to Court, the monies belong to the survivor. Voila! No will, no lawyers, no courts.
The benefit of this practice is that it beats putting your money in labelled biscuit boxes. At least your intended recipient knows that these monies exist.
Joint names are also important in dealing with properties. For example, a HDB flat can be registered in the joint name of a sole breadwinner and a housewife. When the sole breadwinner passes on, the housewife automatically becomes the sole owner and she would not have to fret over who becomes in charge of her husband’s estate, or what his will says.
However, by placing stuff in joint names, you lose some degree of control over them. For example, you can’t sell your house unless everyone who has his/her name in the property agrees to it. Your kids will have access to the money in their bank accounts and can draw out everything in the account without you knowing it (this is especially important if you think you still have some use for the monies you had set aside).
Oh, not forgetting that there’s always a serious risk of litigation.
#3: Put all your eggs in your CPF account or insurance products
CPF monies and insurance proceeds belong to a special class of “assets” which are not dealt with by the Court or the will. These assets follow the nomination you made while you are alive. In order to nominate someone to receive your CPF or insurance monies, you have to complete a form online, snail mail or through your insurance agent. Save for the paperwork you have to do with CPF/your insurance company, there isn’t a need to involve lawyers most of the time.
I can think of several reasons why this is not such a good idea:
- You can’t live off your CPF or insurance while you are alive.
- Nomination is not flexible and may be subject to legal rules of its own.
- The paperwork is as fuss free as bureaucratic operations.
Conclusion
There’s nothing unreasonable to want your loved ones to not have any worries over your passing away, or to avoid lawyers or additional costs in dealing with your matters (in addition to dealing with your loss).
However, taking things too far will entail costs or burdens on your end while you are still alive, which may not be worth the trouble going through this in the first place.
Realistically, estate planning (especially for small ones) will combine a variety of methods to deal with the vicissitudes of dying:
- Having your house registered in joint names with your wife/children ensures that they will have a roof over their heads at all times.
- Nominating your wife/children as recipients of insurance proceeds ensures that they have a direct route to a source of funds for immediate needs (mortgage payments, living expenses etc)
- Having a will gives you the flexibility and the power to deal with your assets as and how you want it, while allowing you to maintain control over them at all times while you are alive.
I’ve come across many grannies who vex over the question of what to do while they are still alive, while still achieving their goals when they pass on. Every situation is unique, so it’s best that you still down go through your stuff, and figure out how best to deal with them using the variety of tools that the law provides. Good luck!
Ask Damon is a regular feature where I try to present legal problems and issues in an interesting and readable manner. Any advice contained herein is of a general nature and if you wish to consult someone regarding your own specific problems or issues, you should seek and rely on the advice of the appropriate professional. I am not liable for any loss or damage you have suffered because of or in connection with what you read here. Feel free to email me at sylbooboo@gmail.com if you have a query or question you would like me to consider.
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