9 IMPORTANT RULES of LETTER OF ADMINISTRATION or DISTRIBUTION IN INTESTACY

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9 IMPORTANT RULES of LETTER OF ADMINISTRATION or DISTRIBUTION IN INTESTACY

INTESTACY  OR LETTER OF ADMINISTRATION SCENARIO

Many people are confused about the term “ Intestacy”  and “Letter of Administration” which actually refers to the same scenario namely a situation which occurs when anyone dies without making a Will to dispose off the beneficial interest in all his property.

 

Intestacy can be total or partial intestacy.

Total intestacy can occur when a person  have a will but the will is invalid or he has never made any will.

Partial intestacy occurs when the deceased dispose of part of the beneficial interest in his property by will but his will did not dispose all the other assets that belong to him which can occur when the gift fails and there is no residuary clause in the will.

 

Rules for Distribution in Intestacy or Letter of Administration scenario

What happens in intestacy ? Well, firstly your property would  be left to your next of kin in accordance with the Intestate Succession Act, Cap 146 (IS Act) which means that certain people whom you want to benefit from your estate may not be able to do so if they do not fall within  the IS Act Rules for Distribution as shown below and secondly you cannot choose  the person of your choice to help you to collect and distribute your assets.

 

Rules for distribution-section 7 of the Intestate Succession Act

 

In effecting such distribution, the following rules shall be observed:

Rule 1

   If an intestate dies leaving a surviving spouse, no issue and no parent, the spouse shall be entitled to the whole of the estate.

Rule 2

   If an intestate dies leaving a surviving spouse and issue, the spouse shall be entitled to one-half of the estate.

Rule 3

   Subject to the rights of the surviving spouse, if any, the estate (both as to the undistributed portion and the reversionary interest) of an intestate who leaves issue shall be distributed by equal portions per stirpes to and amongst the children of the person dying intestate and such persons as legally represent those children, in case any of those children be then dead.
   Proviso No. (1) — The persons who legally represent the children of an intestate are their descendants and not their next-of-kin.
   Proviso No. (2) — Descendants of the intestate to the remotest degree stand in the place of their parent or other ancestor, and take according to their stocks the share which he or she would have taken.

Rule 4

If an intestate dies leaving a surviving spouse and no issue but a parent or parents, the spouse shall be entitled to one-half of the estate and the parent or parents to the other half of the estate.

Rule 5

   If there are no descendants, the parent or parents of the intestate shall take the estate, in equal portions if there be 2 parents, subject to the rights of the surviving spouse (if any) as provided in rule 4.

Rule 6

   If there are no surviving spouse, descendants or parents, the brothers and sisters and children of deceased brothers or sisters of the intestate shall share the estate in equal portions between the brothers and sisters and the children of any deceased brother or sister shall take according to their stocks the share which the deceased brother or sister would have taken.

Rule 7

   If there are no surviving spouse, descendants, parents, brothers and sisters or children of such brothers and sisters but grandparents of the intestate, the grandparents shall take the whole of the estate in equal portions.

Rule 8

   If there are no surviving spouse, descendants, parents, brothers and sisters or their children or grandparents but uncles and aunts of the intestate, the uncles and aunts shall take the whole of the estate in equal portions.

Rule 9

   In default of distribution under rules 1 to 8, the Government shall be entitled to the whole of the estate.

 

For further queries, kindly please contact us:

Raymond Lim & Co. – Location @

#03-40 People Park Center
101 Upper Cross Street
Singapore 058357
Mobile: 9760 7060
Tel: 6222 1004
Fax: 6222 1648

Main E-mail  : RaymondLimCo@yahoo.com.sg 
Other E-mail : RaymondLimWeiFeng@gmail.com

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