Are wills enough? What Expats with assets in multiple countries need to know

Living and working abroad has become increasingly common, with Singapore being one of the most popular financial hubs for expatriates in Asia. An Expat in Singapore may have assets in multiple jurisdictions including their country of origin, for example, having a property in London, investments in Australia, and bank accounts in Singapore. Such a scenario is often overlooked, raising question on how these assets are distributed after death.

The central piece to how your assets is distributed after death is determined by a will. A will is a legal document that specifies how your assets will be distributed after death. However, in the case of expats with assets in multiple jurisdictions, a will may not be sufficient on its own. This is due to a multitude of reasons which stems from the fact that there may be differing laws when it comes to inheritance and wills in other jurisdictions.

This article will explain what a will can and cannot do for expats in Singapore and the practical steps to take to ensure that their assets will be handled in line with their intentions.

Singapore Wills and Legal Requirements

In Singapore, the validity of a will is governed by the Wills Act 1838 whereby a will needs to be in writing and be signed by the testator in the presence of two or more witnesses.

A will can cover most assets such as bank accounts, private property, or business interest. Singapore recognises wills made overseas if they meet legal requirements and formalities, complying with local laws. Otherwise, foreigners can also create wills locally in Singapore for assets in Singapore, which would be more straightforward as the will would comply with local laws. Generally, overseas assets, defined as assets outside an expat’s domicile, can also be included in a will created in Singapore.

How Asset Distribution Works Without a Will in Singapore

In the case where an expat has no will, his/her local assets will be subjected to the Intestate Succession Act. It is a statutory scheme that prioritises distribution to spouses and children and does not recognise unmarried partners or stepchildren unless formally adopted.

In some cases, this may not be the ideal intention of the expat. Hence, creating a will for local assets in Singapore is highly recommended.

Why One Will May Not Be Enough for Cross-border Assets

1. 1. Territorial Nature of Succession Law: The law that governs the distribution of a deceased person’s estate is that of the jurisdiction where the assets are situated. For movable assets such as bank accounts and personal possessions, it will be covered by Singapore inheritance laws. However, for immovable assets such as private property in other jurisdictions, it will be subject to the laws of the respective jurisdiction of the property.
  2. Recognition of Foreign Wills: A Singapore-drafted will is recognised among many common law jurisdictions but may not be recognised in civil law jurisdictions and may apply their local inheritance laws on expats assets, possibly overriding their testamentary wishes.
  3. Conflicting Laws and Forced Heirship: Certain countries impose forced heirship rules, where specific heirs must receive a fixed share of the estate regardless of what is stated in the will. This leaves less flexibility for personal testamentary freedom and might conflict with the expat’s intention of his will.

Often in situations where a will is not recognised in other jurisdictions where an asset is located, the expat’s executor may have to initiate a separate process or obtain a succession document abroad.

Addressing Territorial Differences

1. 1. Multiple wills: Creating a will for assets in Singapore and separate ones for assets in other jurisdictions with different legal systems may be able to address territorial differences. However, all wills must be drafted carefully to avoid inconsistency between each other.
  2. Global will: A global will is a single will that addresses all assets worldwide. However, it also risks conflicts with the will if there are assets located in both common law and civil law countries. Navigating such differences will take up more time and effort.

Assets Not Covered by a Will

Not all assets are covered solely by wills. For example, in Singapore, Central Provident Fund (CPF) balances must be allocated using beneficiary nominations and not by a will. Failing to do so will lead to such assets going to unintended recipients under the Intestate Succession Act.

Holistic Estate Planning tools

Wills are vital but are only one part of a broader estate plan. Other considerations can be made:

- - Trusts: Able to hold assets and avoid probate in some jurisdictions
  - Lifetime transfers: Reduce estate size
  - Powers of attorney: Incapacity planning

Practical steps for Expats in Singapore

1. 1. Take Inventory of Assets Worldwide: List all assets by country and type (movable vs immovable).
  2. Seek Legal Advice in Each Relevant Jurisdiction: Cross-border estate planning requires understanding local inheritance rules.
  3. Decide Whether Multiple Wills Are Appropriate: Carefully consider local recognition and probate procedures.
  4. Coordinate CPF and Beneficiary Nominations: Ensure these align with your testamentary plan.
  5. Review Regularly: Update wills after life events (marriage, new assets, relocation).
  6. Store and Register Your Wills Properly: Consider deposit with the Singapore Wills Registry or trusted safe keeping avoiding loss.

Conclusion

For expatriates in Singapore with assets located in multiple jurisdictions, having a will is essential but often not sufficient on its own. While a Singapore-drafted will effectively govern local assets and, in some cases, overseas assets, differences in inheritance laws, recognition of foreign wills, and territorial succession rules may limit its effectiveness. This is particularly so where assets are in civil law jurisdictions or countries that impose forced heirship rules.

Without proper planning, expats risk delays in administration, increased legal costs, and outcomes that do not reflect their intentions. The use of multiple wills, careful coordination between jurisdictions, and an understanding of assets that fall outside the scope of a will are therefore important considerations. In addition, estate planning should not be limited to wills alone but should be approached holistically using trusts, beneficiary nominations, and incapacity planning tools where appropriate.

Ultimately, expats should take proactive steps to review their estate planning arrangements regularly and seek professional legal advice in relevant jurisdictions. By doing so, they can better ensure that their assets are distributed in accordance with their wishes and reduce uncertainty for their loved ones after death.

Disclaimer: This article provides general information and does not constitute legal advice. Please seek professional advice for your specific situation.

Do reach out to us at Legal Expat if you require professional advice. We have a team of qualified lawyers that can assist you. Email us at: info@legalexpat.sg or drop us a WhatsApp at: +65 8093 4393 if you require assistance.