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:
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For further queries, kindly please contact us:
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There are serious consequences imposed by HDB if the next-of-kin do not either obtain the Grant of Letter of Administration or Probate or carry out a transmission /transfer/ disposal of the flat as the flat may be vested in the HDB if :
These are the actions that you should take namely as follows:
After that, the other important key points to take note:
a. Once the flat is vested in the name of the administrator/executor, you can apply to transfer the flat to the beneficiaries as owners but subject to HDB eligibility rules.
You may need to ask the HDB branch office for a transfer application form and to submit to the branch office managing the flat.
b. You can do the transmission & transfer of the flat at the same time.
c. What if the beneficiaries are not eligible to take over the flat from the administrator/executor?
The only way for the administrator/executor is to sell the flat. However, one has to check if the deceased has a Will or no Will to see if the administrator /executor can sell or not sell the flat. The Will of the deceased must provide for a power of sale for the administrator to sell the flat before the administrator can sell the flat. If there is no power of sale in the Will, then the administrator/executor has to apply to the Court for an Order of Court to sell the flat. If there is no Will, the Administrator may proceed to sell the flat as long as the deceased has not passed away for more than 6 years. An order of Court is required before the flat may be sold where the deceased has passed away for more than 6 years.
If you have similar above mentioned situation and requirement, then please contact us for further in deep discussion.
#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
Our websites:
In the scenario of the deceased owner is holding the HDB flat as a tenant-in-common or sole lessee, then the next-of-kin of the deceased owner would be required by HDB to engage a private lawyer to apply to the Court for the Grant of Letter of Administration (if lessee did not leave a Will) or Grant of Letter of Administration (if there is a Will) within a year from the death of the lessee. This is because the HDB requires the deceased’s next-of-kin to be appointed by the Court to administer the deceased lessee’s HDB flat and other property.
However, if the deceased owner has passed away for more than a year and the next-of-kin of the deceased have not apply to court for either the Grant of Letter of Administration or Grant of Probate, then the next-of-kin need to appoint a private lawyer urgently to make application for the said Grants with the Court and also to write to request the HDB for extension of time for the next-of-kin of the deceased owner to obtain the said Grants.
Such a person who administer the deceased’s estate and distribute the said estate among the respective beneficiaries is called a personal representative. The personal representative is called an “executor” if he is the person appointed by the deceased in his or her Will to administer and distribute the property among the beneficiaries. If the deceased did not leave a Will, the personal representative is known as “administrator”.
Usually upon the death of the sole lessee or tenant-in common of a HDB flat, the HDB require the personal representative of the deceased lessee’s estate to apply to the Court for either the Grant of Letter of Administration or Grant of Probate.
The Grant of Letter of Administration or Grant of Probate are Court Orders which give legal authority to the administrator or executor to administer the deceased’s estate.
Upon obtaining the Grant of Letter of Administration / Grant of Probate, the personal representative will need to go the HDB branch office to vest the deceased’s HDB flat in his name as administrator/executor of the estate, a process called transmission within 6 months from the date of obtaining the Grant of Letter of Administration/Grant of Probate. The personal representative will also need to apply for the transfer of the flat to the eligible beneficiaries as owner or disposal of the flat usually by sale (if there is no one eligible to take over the flat) within 1 year from the date of transmission of the deceased’s flat to the executor/administrator.
To be continued in Part 3 of 3. Please watch out for the final part of the article.
#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
Our websites:
We have frequently come across clients making inquiries about HDB directing them to apply through lawyers to the Court for Grant of Letter of Administration when their deceased parent holding the HDB flat as sole lessee owner.
If there are two co-owners who are holding the HDB flat as joint tenants, then if one of the co-owner passed away leaving behind a surviving co-owner, then there is no need for the Administrator or Executors to apply for Grant of Letter of Administration to administer the HDB flat. This is because the deceased co-owner’s share in the flat will pass to the surviving joint owner upon his death (even if he or she has made a Will).
If the deceased owner is holding the HDB flat as a tenant-in-common or sole lessee, the beneficiaries named in his or her Will (if any) or as set out in the Intestate Succession Act (no Will) will be entitled to his share in the flat.
For Muslim estates, the Syriah Court Inheritance Certificate will usually set out the beneficiaries entitled to inherit the deceased’s estate.
To be continue in Part 2 of 3. Please watch out for the second part of the article.
By Raymond Lim, Dedicated Divorce Lawyer & Professional La
Main E-mail : RaymondLimCo@yahoo.com.sg
Other E-mail : RaymondLimWeiFeng@gmail.com
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