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If One passed away, how do the Next-Of-Kin get back the monies from Banks?

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Old 13-04-2015, 10:45 AM   #1
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If One passed away, how do the Next-Of-Kin get back the monies from Banks?

Not a joint account, individual, Single not married.

You see CPF and Insurance got submit nominated beneficiaries, what about banks saving account if the person never set a will?

What's the fees incurred on this scenario?
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Old 13-04-2015, 10:52 AM   #2
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Most prob need to get a lawyer for a Grant of Probate (if there is a Will) or Grant of Letters of Administration (in Intestacy). Cost depend on the total asset and minimum will be $1000+.
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Old 13-04-2015, 12:36 PM   #3
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Just found this, hope it helps:

"In such a case, you may not need to hire a lawyer to apply for a grant of letters of administration. You should first approach the bank directly. Inform the bank that all family members are willing to sign indemnity forms to close the account and take out all the money for distribution. Depending on the amount of money (some banks place a limit on savings of less than $5000) and on the bank in question, the bank may allow this to be done without letters of administration. If the bank says no to you, then the family would need to hire a lawyer to apply for letters of administration to take out the savings for distribution according to the law. The "Letters of Administration" empowers the "closest" family member(s) to be administrator(s) and empowers him to distribute the deceased's estate according to the provisions of the Intestacy Act."

If he/she is single, then most likely parents will be beneficiaries. U dun need a lawyer if u know how to follow the procedures to apply for letter of admin.

If the person still alive, can quickly take steps to avoid complications.

Last edited by wts2013; 13-04-2015 at 12:39 PM..
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Old 13-04-2015, 05:01 PM   #4
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I would advise to do up a will so things will be easier on the beneficiaries. They will need to get a probate (need lawyer to help), bring to banks and get the money. Or put all joint accounts with ability of either account holder to draw money. That way, once the person pass away or even before, transfer all the money out.
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Old 13-04-2015, 05:14 PM   #5
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Not a joint account, individual, Single not married.

You see CPF and Insurance got submit nominated beneficiaries, what about banks saving account if the person never set a will?

What's the fees incurred on this scenario?

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http://legalclinics.sg/

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Old 13-04-2015, 05:25 PM   #6
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Not a joint account, individual, Single not married.

You see CPF and Insurance got submit nominated beneficiaries, what about banks saving account if the person never set a will?

What's the fees incurred on this scenario?

if got will, will need to apply to court for a grant of probate.. administrator take over.
if no will, will need to apply to court to grant a letter of administration.. court will also appoint an administrator

either way still need to go to a lawyer... the lawyer fees wld be anything from 2-3k to much more depending how complicated the will or the deceased's estate is.
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Old 13-04-2015, 07:02 PM   #7
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From today's Sunday Times.



What's missing from your plan?

To-do list: Make a will, get insured, appoint proxy decision-maker, name CPF beneficiaries

Some folks who contemplate retirement make the mistake of thinking it's all about the money and nothing else.

Sure, financial planning for your golden years is vital. You want to continue living in much the same style to which you've become accustomed.

But there are other important issues that should not be overlooked.

For instance, it is crucial to write a will, and also to nominate who should receive your Central Provident Fund (CPF) savings when you die.

Both these steps prevent unnecessary hassle for others when the time comes.

It is also important to think about giving someone a lasting power of attorney in the event that you lose your mental capacity.

Also, even though you would have stopped working, your insurance policy needs to continue and becomes even more important with the loss of income.

Lastly, retirees tend to find themselves with a lot of time on their hands and uncertain about what to do with it. Or the lack of routine in their lives may leave them at a loss.

Many organisations, such as the Council for Third Age (C3A), run events and activities for seniors. C3A promotes active living, with a focus on life-long learning and promoting senior employability.

Here are some of the big issues that those facing retirement should address:

Just saving money is not enough

1 Insurance

Ms Joanne Yeo, head of product and funds development at AIA Singapore, says that it is never too late to start protecting yourself.

"We recommend making this a priority, especially if you do not have any insurance," she says. This ensures if you fall ill or anything unforeseen happens, your family will be financially prepared.

Mr Gerard Ee, chairman of C3A, says Medisave and MediShield are national health-care saving schemes designed to help Singaporeans with the burden of hospitalisation expenses and selected outpatient treatment.

He adds: "Seniors who would like additional and better coverage for better financial security should speak to financial consultants to understand their options, and get a family member's opinion when making an investment in insurance products."

Ms Cindy Huang, master financial consultant and wealth manager at Prudential Singapore, says that depending on each individual's needs, buying short-term term insurance may be more suitable than a long-term plan.

For those who already have insurance plans, it is also important to regularly review their insurance portfolio to ensure they are still relevant to their needs.

However, as you get older, the likelihood of poor health increases, which means premiums for protection plans are typically higher for those buying them at an older age.

And as an older person, you may also already have pre-existing health conditions. Depending on the type of coverage, insurers may either increase the premiums in exchange for full coverage or they may choose to exclude coverage on certain conditions.

An Aviva spokesman says: "Having some coverage is better than none at all. If you are reconsidering insurance because you feel the premiums quoted are too high, we urge you to consider how you might pay $5,000, $10,000 or even $50,000 in medical bills - and this can happen any time and recur at unpredictable frequencies.

"Ultimately, the cost of insurance premiums is far more manageable and predictable than unexpected expenses you would face in the event of hospitalisation, major illnesses or disability."

For those who are concerned about minor pre-existing conditions, Aviva Singapore offers moratorium underwriting, which means that no health declaration is required and certain pre-existing conditions will be covered after an absence of symptoms, treatments or medication for five years.

While certain conditions apply and not every pre-existing condition is eligible, this can still be beneficial for those with less serious pre-existing conditions trying to obtain full coverage.

2 Making a will

A will is a legal document where personal wishes are set out.

Prudential's Ms Huang says that writing a will is important as part of holistic planning.

She adds: "This ensures that your property and other personal possessions will be passed on to your loved ones in a manner of your wish or choice. It also provides one with peace of mind and reduces any undue worry, stress or arguments among the people you may have left behind."

There is a common myth that only a lawyer can help you write a will. Actually, anyone can do it and register it with the Insolvency and Public Trustee's Office.

The will should spell out the names of the people you entrust with the responsibility of taking charge of your assets and the proper distribution to the beneficiaries.

Those who do not have a will run the risk of their savings or estate not going to the people they would have wanted them to go to.

3 CPF nomination

However, monies in the CPF cannot be included in a will. To direct your CPF savings to the beneficiary of your choice, you will have to make a nomination.

If you do not do so, your money will be distributed to your family according to intestacy laws.

For example, if you leave a spouse and three children, half of your savings will go to your spouse, and the other half will be split equally among your children.

For singles who have not made any nomination, the money will be shared equally between their surviving parents.

Your CPF monies will go to the Government in the absence of a spouse, children, siblings, grandparents, an uncle or an aunt.

However, if you make a nomination, you can choose to leave everything to your spouse, or to your children, and even include your parents.

For Muslims, however, with no nomination made, CPF funds will be distributed differently, in accordance with the Inheritance Certificate, which can be obtained from the Syariah Court.

If Muslim CPF members make a nomination, the nominees are fully entitled to the savings bequeathed to them.

4 Lasting power of attorney

Unlike a will, which comes into effect only after you die, a lasting power of attorney (LPA) allows you to appoint a proxy decision-maker to act on your behalf if you lose mental capacity. The LPA will be revoked upon death and the will, if made, will come into effect.

LPAs can be made to appoint proxy decision-makers for personal welfare matters, which include where you should live and day-to-day care decisions. You can also appoint a decision-maker for property and affairs matters, which relate to decisions about property and insurance.

According to the Office of the Public Guardian, there are 3,200 applications to register LPAs as at January this year.

It costs $50 for Singaporeans and permanent residents to register a standard LPA. The standard LPA gives broad powers to your proxy decision-maker or donee. This form can be self-completed.

To register an LPA that allows you to specify restrictions and instructions on the powers of your appointed decision-maker will cost $200. You will also require the services of a lawyer to help you indicate your requirements.

C3A's Mr Ee says: "One can lose one's mental capacity at any time and at any age. The risk increases as one grows older. The LPA allows one to protect one's interests by indicating his personal, considered choice of a proxy decision-maker - someone he trusts to be reliable, competent and capable to act and make decisions on his behalf should he lose the mental capacity.

"The LPA can only be executed when one still has mental capacity to act. By planning ahead, it alleviates the stress and difficulties faced by their loved ones."

Similarly, Mr Richard Magnus, chairman of the Public Guardian Board, notes that Singaporeans have responded positively to the LPA as a planning instrument.

He says: "We also acknowledge that making an LPA is a personal choice, involving careful considerations in appointing someone they trust to decide and act on their behalf if they should lose their mental capacity."

songyuan@sph.com.sg
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Old 14-04-2015, 10:05 AM   #8
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So what I understand from above:

When the person set his/her Will thru lawyer. Paid by the person.

And when he/she passes away, his/her family go to see the lawyer to apply to court for a grant of probate. So to withdrawn the deceased monies from bank. Monies are distribute accordingly to Will???

Thus how much his/her family needs to pay the lawyer for all this???

Is it really need $1k-$2k for lawyer fees to be paid by the family end??? Assume the person only having $50k-$80k on his/her saving and fixed account in bank.

Lastly what's about his/her share in CDP?
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Old 14-04-2015, 10:32 AM   #9
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So what I understand from above:

When the person set his/her Will thru lawyer. Paid by the person.

And when he/she passes away, his/her family go to see the lawyer to apply to court for a grant of probate. So to withdrawn the deceased monies from bank. Monies are distribute accordingly to Will???

Thus how much his/her family needs to pay the lawyer for all this???

Is it really need $1k-$2k for lawyer fees to be paid by the family end??? Assume the person only having $50k-$80k on his/her saving and fixed account in bank.

Lastly what's about his/her share in CDP?
If the person knows his days are numbered, change bank account to joint a/c, no need Will and incur unnecessary expenses. Or transfer money out now. Other assets he has as u mentioned already got nominees so taken care of.
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Old 14-04-2015, 10:32 AM   #10
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will can write urself, no need to go thru lawyer.. (of cos lawyers will tell u otherwise)

grant of probate allows the administrator (can be one of beneficiary) to execute the will.
grant of probate u can also apply to the court urself without going thru lawyer.. but since most ppl r not familiar with the procedure they usually go thru lawyer lo.
is like selling or buying hdb flat urself without going thru an agent.. many procedures but not rocket science.

probate will take at most a few mths for the court to grant.
with the probate in hand, the admnistrator can execute the will e.g. go to the bank and withdraw n split the money, go to cdp to transfer the shares etc accordingly lo
actually most important thing is there is no dispute between the beneficiaries on the will, den everything can swee swee smooth smooth.
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Old 14-04-2015, 10:42 AM   #11
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will can write urself, no need to go thru lawyer.. (of cos lawyers will tell u otherwise)

grant of probate allows the administrator (can be one of beneficiary) to execute the will.
grant of probate u can also apply to the court urself without going thru lawyer.. but since most ppl r not familiar with the procedure they usually go thru lawyer lo.
is like selling or buying hdb flat urself without going thru an agent.. many procedures but not rocket science.

probate will take at most a few mths for the court to grant.
with the probate in hand, the admnistrator can execute the will e.g. go to the bank and withdraw n split the money, go to cdp to transfer the shares etc accordingly lo
actually most important thing is there is no dispute between the beneficiaries on the will, den everything can swee swee smooth smooth.
Definitely not easy to DIY. I wouldn't mind paying to learn hands on how to apply for probate.
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Old 14-04-2015, 10:49 AM   #12
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CDP shares:

"Upon knowing that the investor has died, the deceased personís securities account will be updated to an estate account. The personal representative of the estate needs to extract a letter of administration or a grant of probate from the court, and present it to CDP in person. The other documents needed are the death certificate, asset schedule, and the personal representative identification card. Subsequently, a request to transfer the securities can be made.

It is not necessary to liquidate the securities. These securities can be transferred to the rightful beneficiaries according to the deceased personís will or under the intestacy law. The personal representative will be notified once the transfers are completed.

There will be a transfer fee incurred"

Per the procedures shld be easy to lodge documents to obtain letter of admin if no Will, just tedious to followup, from what I read. If engage a lawyer, think from $1500 onwards.
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Old 14-04-2015, 10:56 AM   #13
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Before my dad passed away, he already requested all his bank savings/FD to be in joint accounts. When he knows his days are numbered, he requested all monies to be withdraw to avoid complications, he said terminate FD lose little interest better than to lose more money, dun be greedy hold till maturity.

He dun have CDP, but I think u can do the same, transfer first, then u no need Will, no need lawyer, no need apply to court, hahaha
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Old 14-04-2015, 11:05 AM   #14
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Definitely not easy to DIY. I wouldn't mind paying to learn hands on how to apply for probate.

of cos not tat easy to DIY since how many ppl actually hv such experience? but it is also hardly difficult.. u just need to spend the time to visit the court to apply this n that, lodge this n that etc, hence the HDB flat analogy. It is not daunting, especially for anyone who can read n understand english.
if u go thru lawyer u dun need to do a thing.. cos the lawyer will go court apply this n tat etc for u.. so u wont learn anything anyway, if learning is wat u r after ~
den u pay the lawyer a few k for it.. n u will realise wah sibei gd money!
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Old 14-04-2015, 11:21 AM   #15
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Before my dad passed away, he already requested all his bank savings/FD to be in joint accounts. When he knows his days are numbered, he requested all monies to be withdraw to avoid complications, he said terminate FD lose little interest better than to lose more money, dun be greedy hold till maturity.

He dun have CDP, but I think u can do the same, transfer first, then u no need Will, no need lawyer, no need apply to court, hahaha
Of course, it's best if all assets can be converted to cash before death. Then don't need lawyer. But it may be unpleasant to the giver as well as the receivers on who to get how much.
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