The death of a close one is a sad and stressful time. Administering an estate and inheritance as a lay executor of a will only adds more responsibility. We speak to lawyer PATRICK TAN about estate planning and why appointing a professional executor is becoming increasingly popular.
Tell us about yourself and your firm.
I’ve been a lawyer since graduation, and have been in practice for over 25 years now. Fortis Law Corporation is a boutique private client firm that I founded in 2003. It’s possibly one of the few firms in Singapore that exists mainly to serve the legal needs of private clients.
What is an executor of a will required to do?
The main responsibilities and obligations of an executor are to call in the estate of the deceased and administer the estate in accordance with the law.
Traditionally, wills are administered by a family or friend. Why is professional executorship becoming more popular?
Many clients are beginning to appreciate the advantages of engaging a professional executor to execute their wills. Some advantages include saving time, a faster and smoother process, and minimising or avoiding disputes in the administration of the estate. This is because professional executors naturally understand the legal duties and obligations involved much better than lay executors.
Other benefits include avoiding the hassle and burden of administration for the family member, maintaining impartiality and neutrality, and avoidance of potential or perceived conflict between family members. And, sometimes due to the sensitive nature of inheritance and the gifts in the will, clients prefer having a neutral and professional executor to administer and distribute the estate.
Are there any international issues at play for expats when estate planning that make a professional executor preferable?
Yes, convenience! Plus issues of domicile and jurisdiction. Some deceased expats have beneficiaries living in different countries. If they were to appoint foreign lay executors in their wills, the eventual administration of the estate may be cumbersome and fraught with logistical hassles. To save time and expense, it’s convenient to have a professional executor based in Singapore to execute the will and call in the estate in Singapore for administration to foreign beneficiaries. Also, some expats and their lay foreign executors are from civil law countries. This makes it more difficult to understand how the common law system works in Singapore when it comes to estate administration.
How does the process of appointing a professional executor work?
It starts with having a conversation with a potential professional executor to align expectations. Factors to consider when selecting one include relevant experience of the professional executor, costs, longevity (of the professional executor) and whether there is a “back-up” in the event that the primary professional executor predeceases the client.
What are the typical fees for professional executor services?
There’s a one-time appointment fee payable at the time of appointment of the professional executor in a will. This ranges between $4,000 and $20,000 (depending on the size and complexity of the estate). There’s also a one-time fee for the administration of the estate payable once the estate is called in calculated at one percent of the total gross value of the estate.
What safeguards are in place to ensure accountability and transparency in the actions of a professional executor?
In Singapore, we have robust laws to hold professional executors accountable. They owe a duty to the court and to the beneficiaries of the estate. Also, professional executors are usually professionally indemnified against any professional negligence.
If you want to find out more about estate planning, inheritance and whether a professional executor would suit your needs, reach out for an initial consultation.
Fortis Law Corporation
#23-92 The Central Office Tower 1, 8 Eu Tong Sen Street
6535 8100 | fortislaw.com.sg
This article on estate planning, inheritance and executors first appeared in the February 2024 edition of Expat Living. You can purchase the latest issue or subscribe so you never miss a copy!
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