In Singapore, expats can decide how they want their assets to be distributed after they pass away by making a will. However, other jurisdictions may have restricted heirship rules or other legislation that limits will-making or does not recognise foreign wills. In this article, we discuss the laws governing overseas assets in wills, review common challenges faced by foreigners when planning their estate, and explore best practices for making an expat will in Singapore.
Key Takeaways
- Singapore recognises foreign wills and allows full testamentary freedom. However, other countries may have legislation that can come into conflict with your expatriate will.
- The inheritance of real estate is generally regulated by the laws of the country where the property is located.
- Making a separate will for each country can help avoid conflicts between jurisdictions.
- If your assets are in Commonwealth countries or Hong Kong, you can make an expat will in Singapore and have the executors reseal the Grant of Probate in other jurisdictions to administer the estate locally.
- Engaging an estate lawyer ensures your expat will in Singapore is valid and can help speed up the probate process.
What Are Overseas Assets
Overseas assets refer to any movable or immovable property located outside the country that a person considers their permanent home, known as their domicile. For example, for an expat whose permanent home is Singapore, any assets outside Singapore are treated as overseas assets. Conversely, if a foreigner keeps their domicile elsewhere while living in Singapore, their assets in the city-state are generally considered as their overseas assets.
When someone passes away, the distribution of their overseas assets can become complicated due to the differences in inheritance laws in each jurisdiction. As a result, estate planning for expats in Singapore requires a careful approach to account for jurisdictional and procedural differences.
Singapore Law on Overseas Assets in Wills
Generally, you can include any overseas assets in a will in Singapore. According to Singapore’s Wills Act, your will for foreign property will be valid if it meets the legal requirements of any of the following jurisdictions:
- the country where you made the will,
- the jurisdiction where you are domiciled,
- territory where you resided or held nationality when making the will or passing away.
That said, Singapore inheritance laws cover any of your movable assets, such as personal possessions, any amounts in cash or in bank accounts, valuables such as jewellery, vehicles, or financial instruments. Meanwhile, inheritance of your immovable assets, such as real estate or land plots located outside Singapore, is subject to the laws of the respective foreign jurisdictions.
Challenges Expats Face When Making a Will
When expats consider making a will, they need to account for multiple aspects, including the location of their assets and the requirements of applicable jurisdictions.
The most common challenges expats face when making a will include:
- Varying Legal Treatment of Wills: Different jurisdictions can have varying inheritance rules, for example, forced heirship or other limitations.
- Wills Not Recognised in Other Jurisdictions: Some jurisdictions, especially those that don’t follow common law, for example, Indonesia or Thailand, may have conflicting estate laws and not recognise foreign wills.
- Conflicts Between Multiple Wills: When expats make several wills in different jurisdictions, these wills can have a conflicting overlap related to the same assets.
- Inheritance Taxes: Not accounting for inheritance tax rules can create unexpected liabilities for beneficiaries.
- Complicated Probate Proceedings: In the absence of careful planning, an expat’s estate can be tied up in a lengthy and costly probate process across jurisdictions.
- Appointing Executors or Trustees: Different jurisdictions may impose specific requirements for executors appointed in the will.
Probate and Administration of Foreign Assets in Singapore
When a foreigner passes away in Singapore, their assets will be distributed following a process known as probate if there is a will, or by an administrator according to the local intestacy laws in the absence of a will. Meanwhile, a will made in Singapore is not automatically recognised by other countries. Similarly, you may need additional steps to have your foreign will recognised in Singapore as well.
If your foreign assets are located within Commonwealth countries or Hong Kong, your will executor can apply to the court to reseal the original Grant of Probate obtained in your domicile jurisdiction to make it valid locally. However, if the assets are located outside of the Commonwealth or in countries with a civil law system, for example, France, Spain, or Japan, your executors will need to apply for a separate Grant of Probate in each respective jurisdiction.
Best Practices for Making a Will as an Expat
Making Individual Wills for Each Country
In some cases, for example, when your assets are spread across Commonwealth countries, you can have a global will for several jurisdictions. However, making a separate will for each country helps to account for jurisdictional differences and expedites the granting of probate.
Resealing the Grant of Probate for the Commonwealth Countries or Hong Kong
If you have assets in several jurisdictions belonging to the Commonwealth or Hong Kong, you may choose to make one will covering all of your assets. In this case, your executor can apply to the courts in each jurisdiction and have the original Grant of Probate resealed locally.
Structuring Your Estate Planning
The different treatment of wills in various countries, the presence of inheritance taxes, and complex probate processes require a solid understanding of inheritance law for Singapore expats. Careful estate planning for expats in Singapore can help avoid conflicts between laws of different jurisdictions and the provisions of multiple wills.
Why Legal Advice Is Crucial When Making a Will as an Expat
When you seek to achieve international will recognition in Singapore, it’s always advisable to get specialised legal advice. By engaging an experienced lawyer, you can enable a structured approach to cross-border estate planning in Singapore from the beginning and avoid undesirable consequences.
When you work with estate planning lawyers, you can:
- have a better understanding of inheritance laws in Singapore and other countries,
- ensure your will is valid and enforceable in all relevant jurisdictions,
- provide for your Singapore will validity overseas, where applicable,
- plan tax consequences for beneficiaries to avoid unexpected liabilities,
- appoint executors for each relevant jurisdiction.
Conclusion
Singapore is committed to enabling individuals to leave their estate to whomever they wish by making a will. At the same time, cross-border estate planning in Singapore requires the engagement of experienced will lawyers to account for jurisdictional differences and ensure the validity of your will. If you are interested in a Singapore will for foreign property or separate wills for each of your jurisdictions, please don’t hesitate to contact IRB Law estate lawyers for a free initial consultation.
FAQs
Do I need a separate will for each country where I have assets?
If you have real estate in different countries, you can choose to have a separate will for each jurisdiction since the distribution of immovable property is regulated by the law of the country where it is located. At the same time, if your property is located within Commonwealth countries or Hong Kong, you can include such property in your expat will in Singapore and have your executor reseal the Grant of Probate in each country to administer the property locally.
Are foreign wills recognised in Singapore?
Yes, Singapore recognises wills made by foreigners in other jurisdictions. At the same time, you may choose to make your will with a local estate planning lawyer to cover property located in Singapore. Drafting an expat will in Singapore can help expedite obtaining a Grant of Probate for Singaporean property and avoid additional steps required to check the validity of a foreign will.
Can a Singapore will be enforced in other countries?
Generally, you can have an expat will in Singapore recognised in most Commonwealth countries or Hong Kong. However, other jurisdictions, especially those with civil law systems, for example, Indonesia or Japan, may have conflicting inheritance rules. It’s advisable to seek specialised legal advice regarding specific jurisdictions where your assets are located to ensure Singapore will validity overseas.
