Can a bankrupt make a Will?
While legally there is nothing prohibiting a bankrupt from making a Will, his/her insolvent estate is also vested in the Official Assignee, meaning whether the assets do go to his/her intended beneficiary is another matter. Generally, assets that are protected from your creditors can be given/Willed to your intended beneficiary.
You should always check with your Official Assignee on your specific case.
Your assets will vest in the Official Assignee for the benefit of your creditors once you are adjudged a bankrupt.
Assets include anything of value belonging to you at the date of the making of the Bankruptcy Order, or obtained by you thereafter and gifts given to you before your discharge from bankruptcy. You must deliver up possession of these assets to the Official Assignee.
However, there are some assets that are protected from creditors which include:
- Property held by you on trust for any other person
- HDB flats where at least one of the owners is a Singapore Citizen
- Monies in your Central Provident Fund (CPF) account
- Life insurance policies which are held in express trust for the benefit of your spouse or children
- Compensation awarded for legal actions in respect of personal injuries or wrongful acts against you
- The tools, if any, of his trade
- Such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his family; and
- Any other property excluded under any other written law
For bankrupts who are nominated beneficiaries of the Dependants’ Protection Scheme (DPS), the compensation amount will be paid to the Official Assignee for the benefit of the bankrupt’s creditors. Where a DPS payout is made due to the permanent incapacity of an insured bankrupt, the CPF Board or the private insurer will write in for the Official Assignee’s consent for the release of the monies to the bankrupt.
Source: Ministry of Law, Insolvency Office website & Singapore Statutes Online Website, Bankruptcy Act
For assets beyond those stated above (e.g. specific insurance policies), do check with the respective institutions (e.g. the insurer) and/or your Official Assignee.