Many of us know what is a Will, a Lasting Power of Attorney (LPA), and an Advanced Medical Directive (AMD). But how much do we know about Executors of a Will, other types of Power of Attorney (POA), and a Do-Not-Resuscitate Order?
PART ONE: KEY FEATURES OF EXECUTORS AND POAS
Executors of a Will
Who can I choose? An executor is someone who is responsible for carrying out the instructions in a Will.
What do they have to do? Although the criteria are easy, the job is usually not, as an executor's responsibilities often include:
Making funeral arrangements
Applying to court for a Grant of Probate
Locating al assets of the deceased
Paying any outstanding debts owned by the deceased (e.g. bank loan or taxes)
Distributing the assets to the beneficiaries in the Will
Besides the legal duties of the Executor, there are some other considerations:
Do you trust the individual to carry out your wishes according to your Will competently?
Will he/she be able to carry out administrative responsibilities such as a court appearance during a time of mourning?
If your Will gives discretionary powers to the Executor to provide for your child(ren)'s needs until they turn 21, will it be easier to choose as individual who already has an ongoing relationship with your child(ren)?
And in some situations, you may prefer to appoint a professional Executor instead:
You have a large estate (e.g. you own multiple properties/businesses)
You have assets overseas
There are beneficiaries who are minors and their shares must be held in trust and properly managed until they turn 21.
So who should I choose?
1. Executors who are your friends and family are more likely to have an existing relationship with your beneficiaries, which can make the execution of your Will easier
OR
2. Professional Executors are better equipped and have certain financial and/or legal expertise to carry out their duties
Why not have the best of both options?
One way is to have the best of both options by appointing joint Executors where one is
a professional and the other is a personal friend or relative. And appointing more than one Executor will also help them to keep each other in check.
There are usually 2 parties involved in a POA:
Donor (you) - The creator of the POA
Donee - The appointed person to act on the donor's behalf
What is a POA?
It is an instrument for you to appoint someone else to act on your behalf, much like an authorisation letter. It is valid until revoked by you, upon your death/incapacitation (with the
exception of LPA), or upon a specific event listed in the POA.
Besides an LPA, there are 4 other types of POAs in Singapore.
General POA
Your Donee can act on our behalf in all situations unless specifically restricted in your POA.
E.g. Your spouse can access your bank safe deposit box, sell/buy/rent property or file tax returns for you
Specific/Non-Durable POA
Your Donee can only act on your behalf for specified matters/a duration.
E.g., Your trusted friend can help you to manage your property while you are working overseas (appointing an agent, signing a lease with a tenant, etc).
HDB POA
Your Donee can sign on your behalf, documents such as Sales agreements, Options to Purchase, or Lease agreements.
E.g., Your boyfriend/girlfriend can sign the relevant HDB documents for your BTO purchase while you are overseas.
Conditional/Springing POA
It is only activated when a specific event occurs.
E.g., Whenever you are sent overseas for work, your parents have access to your bank safe deposit box.
Stay tuned for Part 2 of this article where the main focus will be on Do-Not-Resuscitate Orders.
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