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What is the difference between a simple and a comprehensive Will? |
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Written by Wilfred Ling
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Monday, 15 March 2010 |
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The main difference between a simple and a comprehensive Will is that the latter contains a testamentary trust. The following is an outline example of a comprehensive Will for a married person with children who are still minors. A simple Will will not have the items indicated by the asterix *. Please note that this is only for illustration – it is NOT a recommendation. For more information about testamentary trust, see What is the use of a testamentary trust?
- Testator: Mr. John Ang
- Executor: Ms Marry Lim (spouse)
- Final & Substitute Executor: Professional Trustee*
- Guardian for children if spouse also pass away: Ms Ang May May
- *Allowance for guardian: $500 inflation adjusted per month until the youngest child reaches 21.
- Distribution for specific bequest:
| Beneficiaries | Amount or item | | Ms Chan Ma Man | $50,000 | | The respective life assured | Third party life insurance policies |
| Beneficiaries | % | | Ms Marry Lim (spouse) | 100% | | First substitute: Surviving children in equal share (transfer to testamentary trusts) | 100% | | *Second substitute: Surviving father, mother in equal share | 100% | | *Third substitute: Charity | 100% |
- “Children” to include en ventre sa mere*.
- *Moveable Testamentary Trust –
- Purpose: to hold moveable assets in trust on behalf of the children. Trust only setup if spouse predecease and there are surviving children.
- Trustee: Professional Trustee
- Powers of Trustee: Sell Trust Assets, make investments. Appoint licensed financial adviser for advice.
- Full discretion for Trustee to use trust assets for the maintenance, education and medical expenses of the beneficiaries.
- Birthday gift of $100 inflation adjusted every year for each child.
- Trust ends when youngest child reaches 30 years old.
- Beneficiaries at end of trust life: Follow residual estate.
- *Immovable Testamentary Trust -
- Purpose: To hold and manage existing and future acquired private property for children to stay. Trust setup only if spouse passes way and there are surviving children
- Trustee: Corporate Trustee
- Powers of Trustee: Rent/Lease properties, Insure Fire insurance, cannot sell.
- Trust ends when youngest child reaches 30 years old.
- Rental income from properties to go to Moveable Testamentary after payment for Property Tax, Repair and Maintenance of trust properties
- Beneficiaries at end of trust life: Follow residual estate.
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