Imagine this: a loved one’s life insurance, meant to provide financial security after they’re gone, gets denied. Beneficiaries are left scrambling, not just for funds but for answers. Creditors circle, the executor delays critical decisions, and your rightful inheritance seems to be slipping away. To help beneficiaries facing issues with their inheritance, we spoke with Wilson Foo, Advocate & Solicitor of Lexcompass LLC, about the legal rights you may not know you have and how to protect what’s rightfully yours.
Name: Wilson Foo
Company: Lexcompass LLC
Specialization: Litigation
Base Country: Singapore
Service Style: Assertive, bold, tenacious
Anything Interesting: Computer programmer, speaks Esperanto fluently
Q: Can you introduce yourself and your area of practice?
Wilson: Certainly! My name is Wilson, and I’ve been practicing law for around 10 years. While pursuing my law degree, I also earned two additional Bachelor’s degrees in Information Systems and Applied Accounting, followed by a Master’s in Professional Accountancy.
Initially, I was set on studying accounting and information systems, but my path changed after a pivotal experience during a friend's trial in the army. He was sentenced to the Detention Barracks (army jail), and I witnessed firsthand how difficult it was for someone without legal knowledge to defend themselves. This experience inspired me to pursue a career in law, specifically aiming to secure at least one criminal acquittal after trial in my career—a goal I’ve achieved multiple times.
While my initial focus was on criminal defence, I’ve since expanded my practice to cover a broader range of disputes, including estate and family matters. This shift wasn’t a complete departure from criminal law but a broadening of my expertise. Clients began approaching me for estate litigation, and those probate specialists who specialise in non-contentious work rather than disputes started referring their clients to me. This opened opportunities in estate disputes, which I’ve since integrated into my practice.
Common Causes of Estate Disputes
Q: What are the common reasons estates become involved in disputes?
Wilson: Estate disputes arise for various reasons, but some situations are more frequent. Here are five common causes:
Dissatisfaction with Will Distribution: A beneficiary may feel they haven’t received a share in accordance with their legal rights and seek to challenge or enforce the Will’s terms.
Claims by creditors: If the deceased had outstanding debts, creditors may file claims against the estate, potentially leaving nothing for the beneficiaries. An estate may or may not be insolvent and a good defence may make a difference as to whether there is anything, or whether there are more assets, to distribute to the beneficiaries.
Contesting the Will's Validity: Disputes can emerge over whether the Will meets legal requirements, such as formalities or the testator's (the person who makes the will) mental capacity.
Intestate Deaths: When someone dies without a Will, disputes can arise over who should manage the estate as an administrator.
Post-Probate Conflicts: After probate is granted, disputes between beneficiaries or between beneficiaries and executors may occur. An executor might file an application to seek the court's directions on specific questions which arise in the administration of the estate, but this can lead to lengthy legal processes.
Understanding the typical causes of estate disputes can help beneficiaries anticipate and address issues before they escalate.
Lesser-Known Causes of Estate Disputes
Q: What are some lesser-known estate-related disputes?
Wilson: Several scenarios can lead to estate disputes that people may not be aware of:
Challenging Creditor Claims: Estate disputes often involve creditors rather than beneficiaries, as debts must be settled before any inheritance is distributed. Beneficiaries may not realize they can contest the amounts claimed by creditors, which may include legal costs and interest in addition to the principal debt.
For example, a wealthy individual may pass away with significant outstanding debts—such as a mortgage or business loans. When creditors make a claim on the estate, they’re not only claiming the principal amount of the loan but also often the legal costs as well as potentially hefty interest. This can be contested depending on the evidence available and the legal principles, and it’s something many people may not realize they may be able to dispute.
Trust Company Litigation: When a trust company handles an estate, disputes can arise if they deny a claim. Beneficiaries or claimants can sue the trust company in its capacity as executor of the estate for refusing to settle certain claims.
Disputes over Denied Insurance Claims: People often think insurance payouts are automatic, but claims can be denied for reasons like failure to disclose crucial information. This opens the door to disputes, either against the insurer or a financial advisor responsible for the non-disclosure.
What if you were denied due to failure to declare certain information but you declared it in a different form? Or what if the information was not material and therefore did not affect you? Often, it comes down to the principle of “utmost good faith”, and if your insurance claim gets denied, you should seek legal advice for a lawyer to help determine if you have grounds for contest.
Inheritance of Company Shares: If a business owner passes and leaves company shares, beneficiaries need to watch for red flags such as a lack of transparency from management; for example, consistently being denied access to information about the company, or a failure to declare dividends even though the company appears profitable, and the directors are getting paid large amounts of fees and salary. These issues can lead to disputes about the proper management of inherited shares.
Uncommon estate disputes can catch beneficiaries off guard; awareness of them ensures that overlooked issues don’t compromise their rights.
Overlooked Estate Scenarios: Legal Rights You Didn't Know You Had
Q: What should beneficiaries do if the estate has substantial debts?
Wilson: A skilled lawyer may help negotiate settlements on debts, potentially reducing the amount owed. Creditors often claim the maximum amount, but legal strategies may lower the debt, possibly turning an insolvent estate into a solvent one, allowing beneficiaries to receive their share.
If a beneficiary is also a creditor—perhaps due to personal loans to the deceased—the executor can challenge other creditors' claims, but may prioritize paying the beneficiary who is also a creditor. For instance, the beneficiary’s claim as a creditor might take precedence over other creditors' claims, if they hold security over certain assets.
Making a personal loan means you're a creditor too! As both a beneficiary and a creditor, you can potentially recover your own claim, which could be in priority to other creditors’ claims.
Q: How should beneficiaries respond if they believe the executor is acting unfairly or inappropriately?
Wilson: Executors are legally obligated to manage an estate responsibly and promptly, ensuring that the deceased’s wishes are honoured and that the beneficiaries receive their entitled shares. In most cases, a reasonable executor will begin administering the estate soon after receiving the grant of probate. However, there are instances where this process is delayed, or worse, intentionally mishandled.
For example, imagine an executor who, after obtaining probate, leaves the estate unattended for years. They might claim they are unsure of how to proceed, but in reality, they are favouring one beneficiary over another. Suppose this executor is a relative who deliberately neglects to administer certain assets, hoping to benefit a favoured family member at the expense of others. In such cases, the executor’s inaction is not simply due to oversight but driven by ulterior motives.
In situations like this, beneficiaries must take proactive steps to protect their rights. If an executor is acting unfairly or failing in their duties, it’s essential to consult a lawyer and consider legal action to hold the executor accountable. Rights don’t exist in a vacuum; they require action to be upheld and are only meaningful when enforced. Legal recourse is often the best way to ensure that an estate is managed in accordance with the law.
If you, as a beneficiary, believe that an executor has misallocated your share or failed to manage the estate properly—especially in cases involving significant assets like private property—it's important to act swiftly. Speaking to a lawyer can help you challenge the executor's actions and safeguard your inheritance.
Your rights as a beneficiary don’t exist in a vacuum. You can and should challenge situations where your inheritance is at risk.
Q: Can parents, who are dependent on their child for maintenance, seek legal recourse if they are left out of the child’s will? How can dependent parents protect their interests?
Wilson: The Inheritance (Family Provision) Act covers order of payment for the maintenance of certain dependents. Unfortunately, dependent parents are not included.
In such a situation, you should explore whether the Will can be challenged or revoked due to invalidity. For example, was there any sort of duress? Did the child’s spouse, for instance, threaten the child or force him/her to sign the Will?
Legal advice is essential in such cases to assess whether there are grounds for a challenge.
Q: What happens if I give my share in a joint account or a joint tenancy to someone else other than the joint owner through a will?
Wilson: Joint accounts and properties that are owned as joint tenants often involve the "right of survivorship," meaning the surviving co-owner inherits the asset. However, this applies only to legal ownership, not equitable interest.
For example, a property could be jointly owned from a legal standpoint, but if the parties’ intent isn’t meant to include equitable interest, then there is a presumption that each owner’s entitlement to the benefits of the property is the percentage of their contribution to that property. In other words, the surviving owner may not automatically be entitled to the full benefit of the property if the other co-owner dies.
This distinction has led to disputes where the legal arrangement doesn’t align with the actual intention of how benefits should be distributed.
This also applies to joint bank accounts but there is an added layer of complexity - the specific wording of the survivorship clause in the bank account terms. Some banks state in their terms that they have the power to pay out all the monies to the surviving joint holder without being liable.
Right of Survivorship vs. Actual Intent
Disputes about joint accounts are relatively common. While the right of survivorship is the default, any disputes can lead the court to investigate the deceased owner’s actual intentions for the joint account.
For instance, if you and your spouse hold a joint bank account and you pass away, the right of survivorship allows your spouse to automatically claim all the funds in the account. However, if your Will specifies that a portion of those funds should go to your parents, they may challenge this. They could have a valid argument based on the “presumption of resulting trust,” which suggests that you didn’t intend for the surviving joint account holder to inherit the full amount.
The court may also consider the “presumption of advancement,” which applies in certain relationships, such as parent-to-child or husband-to-wife. This presumption assumes that the deceased intended for the surviving party to receive the full benefit of the joint account.
Interestingly, due to historical reasons, the “presumption of advancement” does not apply to transfers from wife to husband. So, if a husband passes away, it may be presumed (in the absence of available evidence) that his contribution to the joint account was meant for his wife. However, the reverse does not automatically hold true.
It’s important to note that these legal presumptions might be challenged based on the specific facts of the case, and it is up to your lawyer to present the arguments on your behalf.
Joint ownership doesn't always mean the surviving party gets the full benefit. You can potentially contest joint ownerships based on contributions or other legal factors.
Still unsure if you have the right to contest?
Register for a FREE webinar by Wilson for more insights!
Navigating Disputes Over Lasting Power of Attorney
Q: Let’s discuss cases involving mental incapacity. Since the government transitioned to digital Lasting Power of Attorney (LPA), have you seen an increase in disputes related to LPAs? Do you handle these cases?
Wilson: Yes, I do handle such cases. However, I don’t believe the increase in disputes is necessarily due to the digitization of LPAs. Rather, it’s more likely that people are becoming increasingly aware of the potential for LPAs to be abused.
(LPA is a legal document that allows you to appoint one or more persons to make decisions on your behalf if you lose mental capacity one day.)
Q: What are some common reasons people have disputed LPAs?
Wilson: One common reason is the belief that the Donor (the person whom the LPA is made for) lacked mental capacity at the time the LPA was signed. In these cases, although the certificate issuer may be at fault, the LPA can still be voided because the Donor wasn’t mentally competent. This often leads to disputes over deputyship.
Deputyship can become a point of contention because the appointed deputy has control over the Donor's financial assets, such as bank accounts and funds. While deputies are required to report to the Office of Public Guardian (OPG), they do have some discretion in how they manage the Donor’s finances. In some unfortunate cases, a deputy—who might also be a beneficiary under the Will—could act with bad intentions, doing the bare minimum to care for the incapacitated person, all the while hoping for their quick passing to inherit the assets.
Another reason disputes arise is when someone believes the appointed Donee (the person appointed to make decisions for the Donor) is unsuitable for the role and should not be entrusted with managing the Donor's affairs.
Litigation Representative for Minors
It’s also important to note that if minors are involved—such as the Donor’s children under 21 years of age—and they wish to dispute the LPA, they would need a litigation representative who is 21 years old and above to appoint a lawyer and take legal action on their behalf.
Thinking of Disputing an Estate? Key Steps and Considerations
Q: What are some typical steps involved in the process of disputing an estate?
Wilson: The process often begins with the exchange of lawyer’s letters. This lawyer letter, commonly known as a "letter of demand," outlines the claimant’s demands. If the demands are not met, the case proceeds to court.
Often before court action, parties might engage in “without prejudice” negotiations to try and settle the matter, but anything discussed during these talks cannot be used in court later.
Q: How much is an estate typically worth before someone considers litigation?
Wilson: It ultimately depends on the individual. For many creditors, a common threshold for the amount of the claim is around $60,000, as disputes involving sums up to this amount are typically handled in the Magistrates' Court, which is recognised as a low value dispute. Disputes above $60,000 and up to $250,000 fall under the jurisdiction of the District Court, while amounts exceeding $250,000 are addressed in the High Court.
However, just because a case is classified as a low-value dispute does not mean it isn’t worth pursuing in court. That said, people are generally more inclined to pursue claims involving higher amounts. In the end, it all comes down to the individual's risk tolerance.
Q: How much are legal fees for estate disputes? Can you provide a ballpark?
Wilson: Many factors can influence legal fees. It depends on the complexity of the case rather than the dispute's value. Settling a case early, during mediation, might cost under $10,000, while a long, drawn-out dispute in the High Court could exceed $100,000. I offer a free 30-minute consultation to give clients a ballpark estimate. For example, I might say, “You should be mentally prepared to set aside at least $100,000 as your litigation war chest.” After the initial consult, fees are charged by the hour.
Q: What should people be mindful of before consulting a lawyer or contesting a probate or estate? Are there situations where you would advise against taking legal action?
Wilson: My first piece of advice is to be concise. Try to summarize your story in 10 minutes or less, because the initial free consultation, which usually lasts 30 minutes, is incredibly valuable. If you spend that time discussing irrelevant details, you’re essentially wasting your own opportunity to get meaningful advice. It’s best to keep your explanation brief and let the lawyer guide the conversation, as they will likely ask the key questions necessary to understand the dispute.
If the case is straightforward and it’s clear that there’s no viable legal claim, I would advise against pursuing it. This sometimes becomes apparent to me within the first half hour of the consultation. In these instances, I’m honest with clients and recommend not moving forward to avoid unnecessary expenses.
That being said, if the client still insists on proceeding, I’ll assess whether there’s any legal avenue available. I can’t file a false claim, of course, but if there’s a possible way forward, I’ll explain that while the case may not be strong, they have the option to proceed if they’re willing to invest the time, money and effort. However, if I’m convinced there’s no chance of success, I’ll suggest they seek a second opinion from another lawyer before making a final decision.
Q: Anything interesting about you?
Wilson: In my spare time, I am a computer programmer. In addition to developing legal tech applications, I have created educational games, including one where players control blood cells to defeat SARS, MERS, and COVID-19. I also speak Esperanto fluently and am an active member of the Esperanto community, having served as the Treasurer of the World Esperanto Youth Organisation for a year.
This interview has been edited for length.
FAQs
What are some common reasons people contest a Will's validity?
Wills are often contested due to concerns about whether they meet legal requirements, such as the proper formalities or questions about the testator’s mental capacity at the time the Will was signed.
What should beneficiaries do if they disagree with how an estate is being managed?
If beneficiaries believe the executor is acting unfairly or neglecting their duties, they should seek legal advice to protect their rights and possibly challenge the executor’s actions in court.
Why are insurance claims sometimes denied after a loved one passes away?
Insurance claims can be denied for reasons such as failing to disclose certain information. In such cases, beneficiaries may need legal advice to contest the denial and determine if they have grounds for a dispute.
Why might creditors claim more than the original debt?
Creditors often claim not just the principal debt but also legal costs and interest. These additional amounts can be challenged, potentially reducing the overall debt owed by the estate.
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