I was confused with my client’s domicile!

It was early in my career when I decided to specialise in estate planning. At that time, Kevin was one of my first clients. On the whole, Kevin behaves like most other expats that I know. However, his background was more complicated than I could have imagined. Let me explain.

Firstly, Kevin was born to a British family in London, United Kingdom. However, he spent the majority of his childhood at renowned colleges in United States. When he reached 21 years old, his parents gifted him an apartment in New York City.

For strategic reasons, Kevin decided to set up his technology company in Singapore. Not long after, he married his long-time girlfriend here. When I asked Kevin about his long-term plans for his future, he replied,

I want to focus on building this technology company to improve people’s lives. I don’t know how long it will take to succeed, but I will definitely be here to reap the fruits.

Table of Contents:

1. What is domicile?
2. Why does Your domicile matter?
3. How to determine Your domicile?
4. Conclusion

Part 1: What is domicile?

According to Oxford Dictionary,

The country that a person treats as their permanent home, or lives in and has a substantial connection with.

In other words, it is the country where you intend to spend the rest of your life at. This is regardless of where you may be at the moment. As an illustration, I was born in Singapore. However, I intend to migrate to Australia and to make it my permanent home. For this purpose, Australia will likely be my domicile.

Part 2: Why does Your domicile matter?

On the whole, we need to determine which country to carry out the primary probate process. This is for the purpose to obtain the letter of probate. Otherwise, there is no way for your beneficiaries to inherit your assets.

Trivia: You can only have one domicile at any time.

In order to determine the rule of distribution, we will need to divide the assets into two categories – immovable assets and movable assets.

Immovable Assets in Singapore

The Intestate Succession Act will dictate the asset’s distribution.

Movable Assets in Singapore

The rule of distribution will depend on your domicile.

Part 3: How to determine Your domicile?

In general, there are five factors to determine your domicile.

Part 3.1: Nationality

Firstly, we will look at nationality. Take the case of my client, Kevin. He holds a British citizenship by birth in the United Kingdom.

Part 3.2 Place of Residence

Secondly, we will find out where Kevin is staying at. After he married his long-time girlfriend, Kevin stayed in a private apartment in Singapore.

Part 3.3: Any property in the country

Kevin’s parents gifted him an apartment in New York City. In addition, Kevin bought a private apartment in Singapore after his marriage.

Part 3.4: Location of Family

While Kevin’s parents continue to reside in London, his immediate family (referring to Kevin’s wife) is with him in Singapore.

Part 3.5: Length of time living in the country

Finally, I have known Kevin for 9 years now. And that is how long he has been in Singapore. Time flies!

Part 4: Conclusion

By and large, your domicile will determine your right to make a Will. In like manner, this has a direct impact on the law of probate and administration. With this in mind, we can use the above mentioned factors to aid us through the process.

Regardless of net worth, I will advise all my clients to draft a Will and establish their domicile early. This is for the purpose to reduce unnecessary paperwork and dreadful waiting time in due time.

Checklist:

1. Document a list of all your assets and liabilities.
2. Draft a Will.
3. Submit a CPF Nomination.

Have you done your estate planning? Don’t leave it to the state to decide for you!