Legal Updates

Understanding the Process of Administering an Estate Without a Will in Singapore

In Singapore, when a person passes away without leaving behind a valid Will, the process of administering their estate becomes more complex. The administration of an estate ensures that the deceased’s assets are properly distributed according to the law. Without a Will, the estate must be managed according to the rules of intestacy, which outline how assets should be divided among the deceased’s next-of-kin (NOK).

What Happens When Someone Dies Without a Will?

If a person dies without a Will, also known as dying intestate, the NOK must apply to the Court for a Grant of Letters of Administration (LOA). This Grant gives the NOK the authority to administer the deceased’s estate, including identifying and collecting assets, paying any debts or liabilities, and distributing the assets to the rightful beneficiaries according to the laws of intestacy.

Typically, the spouse or children of the deceased are the first to apply for the LOA. However, in cases where there are no surviving close relatives, a more distant relative, or a person with an interest in the estate, may apply to the Court. The Court will determine who is entitled to act as the administrator of the estate.

Time Limit for Applying for LOA

An application for LOA must typically be made within 6 months from the date of the death. However, in exceptional cases where legitimate reasons for the delay are provided, the Court may allow the application to proceed even after the deadline. It is important to note that failure to meet the time limit without justification can lead to delays in the administration process and may require the NOK to show valid reasons for the delay.

Role of the Public Trustee

If no NOK steps forward to administer the estate, the Public Trustee may be appointed as the administrator^[1]. The Public Trustee’s responsibilities include distributing the deceased’s assets, ensuring debts are settled, and ensuring compliance with all legal requirements. In cases of intestacy, the Public Trustee also oversees the distribution of assets in accordance with the rules of intestacy.

If the Public Trustee is unable to trace the beneficiaries of an estate, the funds shall be transferred to the Unclaimed Estates Account. Unclaimed funds remain in the Unclaimed Estates Account for 7 years and if no claim is made within 7 years, the funds along with any accrued interest will be transferred to Singapore’s Consolidated Fund^[2].

Funds placed in the Unclaimed Estates Account are managed by the Public Trustee. If no beneficiaries can be identified, the funds may eventually be absorbed into the government’s Consolidated Fund. However, if beneficiaries come forward after the funds have been transferred, they may still make claims against the Consolidated Fund, provided their claims are validated by the Public Trustee.

Claims from the Consolidated Fund

After unclaimed funds are transferred to the Consolidated Fund, there is no time limit for making claims. Claims can be made at any time, provided they are valid and meet the criteria for distribution. If a claim is found to be valid, the claimant will receive the amount owed, but the funds paid out will not accrue interest.

Conclusion

The process of administering an estate without a Will involves several steps, each of which requires careful attention to detail. The process which starts from applying for a Grant of Letters of Administration to managing unclaimed estates may involve the Public Trustee who would play a significant role in ensuring the proper distribution of assets. It is important to act within the legal time frames and to be aware of the rules and procedures governing unclaimed estates.

It is highly advisable for those involved in estate administration to seek legal advice to ensure all requirements are properly carried out. Our experienced lawyers can assist in guiding you through this process and ensuring that the estate is properly administered. Contact us today at enquiry@ascentsialawcorp.com for legal advice and support.

^[1] Section 55 of the Probate and Administration Act 1934

^[2] Section 21 of the Public Trustee Act 1915

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