Preventing Dispute Over Property Division

It is common for parents to add one of their children’s name to their property for administrative convenience and mortgage purpose. However, the price of having such convenience usually eroded by disputes either upon sale or asset division in the will.
 

In many cases, the parents and child own the property under joint ownership, while the parents state in their will that the property is to be divided by all the children upon their demise. Upon parent’s demise, the child listed as joint owner refuses to give up the property ownership right, despite the parents will stating clearly that it is to be shared with other beneficiaries. And that’s when the dispute begins.

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In Singapore, the rule of survivorship states that surviving joint owner inherits the asset that they own jointly with another person. That means, a will alone cannot simply override this fact, unless there is declaration of trust or presumption advancement is proven. One has to go through lengthy and painful process to reclaim their stakes in the will, making us question if the administrative convenience worth the price.

What can you do to avoid such dispute?

1. Use Power of Attorney
   If your intention is only to have your children manage your property, it is better to set up a power of attorney -giving them legal rights to do things on your behalf, instead of including them as joint owners. This avoids confusion and complication for your asset distribution.
2. Use Tenancy-In-Common
   As parent, you can give a certain percentage amount of share in your property by adding their name as Tenant In Common. This way, you are still able to distribute your share amount in property in your will upon your demise.
3. Document Your Intention Clearly
   If your intention to include your child in the property as administrative convenience and mortgage purpose, but you do not intend to gift the whole property upon your death, document your intention officially with signature appended by all parties. It is important to be transparent in your intention as to avoid any confusion and dispute when you are no longer around to state your intention.

https://www.straitstimes.com/business/invest/how-to-prevent-relatives-from-fighting-over-property

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