What happens to my joint assets after I die? Can I Will it to someone else?
Generally, for joint assets (e.g. joint tenancy for property), the right of survivorship applies. This means that when one of the owners dies, the other surviving joint owner(s) will inherit the share of the deceased.
Even if you intend to give it to someone else or put any specific instructions regarding the asset, when you pass on the asset by default goes to the other surviving joint owners(s), which overrides any instructions or allocation you set earlier.
For example, a joint-tenancy is a form of property ownership where all co-owners have an equal interest in the property, regardless of the individual owner's contribution to the property purchase. This means that upon the death of a joint-tenant, his interest in the property will automatically pass on to the remaining co-owner(s), regardless of whether he has made a will. (Source: What is joint-tenancy, CPF website)
You can still give it away in your Will PROVIDED that you subsequently own the entire asset (e.g. through inheriting it when you outlive the other joint owners).
If you do not want the asset to go to the other joint owners, a neater way will be to "convert" the jointly owned asset to sole ownership or "shares". (e.g. coverting from joint tenancy to tenancy in common). You might not want to do it through a Will (including any testamentary trust) as the right of survivorship would have already applied after you die, giving your share to the other joint owner(s) first. To avoid disputes, you might want to consider doing such severance while you are still alive.
Please contact HDB or a conveyancing lawyer for HDB or private properties respectively if you would like to know more on how to "convert" the ownership type.
For bank accounts, you can instead set up your own accounts and have other arrangements such as a supplementary credit card.
As with most things, there are always exceptions based on a case-by-case basis (see external news article). These exceptions are usually rely on the point that the joint ownership is only in name, or through some ambiguity in the "joint agreement".
Additionally, in joint bank accounts, some banks deliberately omit what happens to the funds in the account if one of the joint account holders passes on. These banks indicate in the terms and conditions of joint bank accounts that in the demise of one of the joint account holders, the other joint account holders will continue to have access [access, not to be confused with ownership of the funds within] to the account and that the account may be frozen in the event of a dispute.
If you have a joint asset in name only (and would like to continue to keep the asset a joint asset) but would like to distribute the asset to someone else instead of to the surviving joint owners, do note that you may be risking a dispute down the road.
Consider this hypothetical scenario - Tom and his sister, Margaret, hold a joint bank account. While both names are on the account, most of the funds (about 80% were contributed by Tom). They set up the joint account primarily to make it easier for both parties to access the money. So how much of the money belongs to each party? What if Margaret contributes in other ways, like for example, Margaret actively helps Tom invest the money in the joint account? Does any interest or capital gain from the sum of money now belong to Margaret or Tom? What if Margaret uses the money to help the household (which the siblings stay together)?
What do you think will happen upon Margaret's demise if in her Will she states 50% of the joint bank account is to be given to her boyfriend, John?
"Well, see you Court"
Regardless, you can indicate as such in the platform with the following steps.
To minimise the risk of a dispute or to at least maximise the possibility of a favourable outcome in the event of one, you should have a written agreement on the asset with the other person and reference it in the Will.
As the asset is not “truly” a joint asset but only in name, indicate either Sole (sole ownership) or Shares (part ownership) instead of joint.
Under Additional Instructions in the asset, key in the following:
This asset is held jointly with my {Relationship}, {Name}, {Identification Number/details}, in name only.
[state reasoning]
I direct that, upon my demise, [the entirety / my share] of this asset shall fall into my estate before being distributed to the beneficiaries as indicated in the Will.
An agreement between {Name} and I on this asset can be found together with my Will for reference.
Some common reasons include:
(for joint bank accounts)
It is set up for convenience purposes for {Name} to assist me with administrative matters such as paying the bills through the said account. All funds in the account have been solely contributed by me.
(for joint properties)
The ownership is set up as such to secure a loan with lower interest rates. Payment of the property has been solely contributed by me.
getArrange do not advice on drafting of separate agreements. Please use the "Consult Lawyer" function within the platform if you need to consult a lawyer to draft the agreement.