Will Writing

A Will is a legal document you draw up to declare your wishes for your loved ones as to how you want your assets to be distributed after you passed on.

Without a Will, your assets could give more troubles than benefit to your family at a time when they are most vulnerable. Your loved ones could be involved in a long drawn legal process or fighting in a complex legal battle with other family members.

Without a Will, the law will decides who your beneficiaries, trustees and guardian would be. There is a legal process to go through before your loved ones can benefit from your assets. Leave nothing to chance. Make a Will and the law will protect your wishes.

WHAT HAPPEN WHEN A PERSON DIES?

When someone passed on, under the Malaysian law his/her estate will be FROZEN and to unlock the frozen estate, the following are the legal administration process (in general with exception):-

With a Will (Dies testate) – Apply Grant of Probate (GP)

The Executor appointed in the Will need to apply GP at the High Court. The GP can be obtained within 3 months to 1 year. Once the GP is extracted and all debts of the deceased settled, the Executor will distribute the estate according to the Will.

Without A Will (Dies intestate) – Apply Letter of Administration (LA)

The legal beneficiaries of the deceased’s estate need to apply LA. One or two administrator(s) will need to be appointed for this purpose. Upon extraction of LA, the administrator(s) will distribute the net assets of the deceased (after settled all his debts) according to the Distribution Act 1958 (As amended in 1997).

To apply for LA, the deceased’s family may need to fulfill certain requirements e.g. looking for 2 guarantors; the appointment of the administrator(s) need 100% consent from all legal beneficiaries; appointment of guardians for minors who will in-turn give consent to the appointment of administrator(s) etc, thus, this process could take 2 to 8 years and in between family contentions could occur.

The Legal administration process in Malaysia is applicable to all Malaysians and foreigners domiciled in Malaysia who own movable and immovable assets in Malaysia (Please refer to Distribution Act 1958)

Without A Valid Will

Firstly the deceased’s assets are frozen. His/her family, spouse and children might face cash flow problems while waiting for the extraction of LA.

With the LA, all his assets will be distributed according to the Distribution Act 1958 (As amended as at 1997).

  • He has lost the right to appoint executor, trustee and guardian of his choice. His children’s welfare may not be taken care of by the right person.
  • As Letters of administration (LA) is required, application to the High Court requires:
A. APPOINTMENT OF ONE OR TWO ADMINISTRATOR(S)

100% written consent is required from all lawful beneficiaries under the Distribution Act 1958 (Amended in 1997) for the appointment of the administrator(s). The administrator(s) who is chosen may not be the most suitable person to administer the estate. When there are minor beneficiaries, then, two administrators will be required before the court issues the LA. Guardians are appointed to decide for the minors as minors can not give written consent.

B. TWO SURETIES REQUIRED

Qualified guarantors are persons who have net worth value that is more or equivalent to the gross estate value of the deceased. The security may be by way of bond in the amount equivalent to the GROSS VALUE of the estate of the deceased.

  • More time require to fulfill the requirements for the application of LA.
  • More legal cost are involved.
  • If both the husband and wife decease together, the court will appoint guardian for the minor children.
  • Family contention may arise. Family members may be fighting in the court over the distribution or choice of assets.
  • Under the Distribution Act, if there are surviving parents to the deceased, these parents received 1/4 share of the estate. Problems will arise if these parents die later. Their entitlements will in turn go to their children. This complicates the distribution as there are more claimants. (Please refer to the chart above).

And, With A Valid Will

You provide for your beneficiaries in the way you choose rather than letting the laws decides.

  • You exercise your RIGHT under the law to appoint people of your choice to administer your estate and carry out your wishes, ensure and safeguard the interest of those you loved and care. You select your preferred executor whom is expected to do a good job when you pass on.
  • You can also provide support in monetary form or in kind to other selected family members e.g. stay-in partner, aging uncles, dependants, friends, step-children, “god-children”, church, temple or any charity organizations etc. All these persons have no provisions under the law.
  • You appoint Trustees and Guardian of your choice for your infant children in the event of your spouse predeceasing you or if both of you were to pass on. These are trustworthy persons who will ensure your children’s welfare are in good hands.
  • No sureties are required for application of Grant of Probate (GP).
  • Generally, it costs less in term of legal fees and less time to apply for a Grant of Probate (GP) than Letter of Administration (LA).
  • Family members who depend on you can avoid facing financial hardship.

WHY IT IS IMPORTANT TO HAVE A WILL?

WHO ARE NAMED IN A WILL? THEIR ROLES...

CAN I WRITE MY OWN WILL OR DO A 'DIY' WILL?

It is always not advisable to write our own wills because we might not achieve what we want and avoid what we don’t want. The following might happen:

  • Partial intestacy – No residuary clause
  • Easily subject to contest in court, may cause future problem
  • May not be granted a Probate – Vague
  • Not fully aware of certain legal implication
  • May not take care of your worries
  • No assurance/protection to beneficiaries e.g. no trust fund to protect family members
  • No appointment of guardian for minor children
  • May not help to realize your goals!

Remember, a Will must be ‘functional’, as it may cause delay, problems, frustrations, anger, hardships to our family and loved ones when it is not properly drafted and 100% valid under the Law.

Get a Professional to write, even it is a simple one as it grants you with Peace Of Mind & Makes Your Wishes Come True

Trust Services

A Trust is an estate planning instrument for an Individual to ensure that his assets are protected and looked after by a Trustee or Trustees for the benefit of the trust beneficiaries. The Trustee receives the assets from the Settlor and is legally obligated to hold and manage the assets for the enjoyment of the beneficiaries during the trust period set by the Settlor.It is commonly known as “Living Trust”

There are three parties involved in a Trust.

  • The Settlor – Person who sets up the Trust.
  • The Trustee – The person or a corporation who manages the Trust assets
  • The Beneficiary – the person who receives benefits from the Trust

WHAT ASSETS CAN BE INCLUDED IN A TRUST?

The assets commonly used to set up a trust are: cash, insurance policies, unit trust, properties, shares. The property under the Trust does not belong to the Trustee personally. Though the trust property is registered in the Trustee’s name, it is NEVER part of the Trustee’s own properties when he dies. Only the Trust beneficiaries will be entitled to the Trust Fund NOT the Trustee’s own beneficiaries.

Example of Common Usage of Trust

Distributing Wealth To Bypass Grant Of Probate

Trust is useful when you have:-

  • Minor children and spouse who is a homemaker or who is not the main bread winner.
  • Special children requiring funds for medical, education and living expenses.
  • A second family to provide for.
  • To finance children’s tertiary education.

Protecting Wealth

  • Protecting Against Spendthrift Beneficiaries
    • The Protector appointed will ensure there is no wastage of moneys receives under the Trust. Protector can stop disbursement of fund to undeserved beneficiaries.
  • Against Creditors of Settlor and Beneficiaries
    • Protector will instruct Trustee to stop the disbursement of fund when any beneficiary has become a bankrupt.
  • Protecting Wealth Against the Settlor’s Creditors
    • When a person becomes a bankrupt, usually an investigation by the authorities is done to recover assets transferred up to 5 years prior to bankruptcy. Any questionable transfers may be nullified to recover the assets to pay the creditors.

Protecting Wealth Against The Beneficiaries’ Creditors!

This is achieved by creating a Discretionary Trust when any of the beneficiary becomes bankrupt, he will no longer be entitled to the benefit under the Trust.

Preserving Wealth For Your Great Grandchildren

Preserving assets for your great grandchildren.

To Cater Funds For Various Family Situations

For example education and maintenance fund for grandchildren, nephews etc

WHY DO PEOPLE SET UP A TRUST? IT IS BECAUSE...

  • Assets held under Trust are not frozen upon demise.
  • For the distribution of wealth, including periodical payment.
  • To ensure the wealth is protected against lawsuits as well as creditors.
  • The preservation of wealth.
  • Fulfilling various personal objectives, including maintenance of dependants and education funds.

Benefit of living trust

  1. Distributes the way you want it to
    • For example, set goals to be achieved (such as a college degree) before your loved ones receive anything from the trust or to be used for their medical expenses. This avoids wastage of the trust fund.
  2. You decide who to receive
    • Just like a Will, it is your choice, no one can challenge it.
  3. No fuss and instantly available as it is not part of the estate
    • No lengthy legal process. Trust Fund is readily available for the beneficiaries’ use because it is in the Trustee’s name. It complements the Will you wrote.
  4. Have a peace of mind
    • Once the trust is created and the Protector appointed, the well-being of your beneficiaries are taken care of.
  5. Assets can be protected from creditors – Irrevocable Trust
    • When assets have been in the trust for more than 5 years.
  6. Not easily contested
    • Disgruntled family members who are not receiving anything from the trust are unable to make claims against the trust because the assets are no longer under your name.
  7. Your instructions on distribution in the Trust Deed can prevent you wealth from being squandered

A COMPARISON OF A TRUST AND A WILL

Contact Us

Working Hour

Office: Mon – Fri (09:00 – 18:00)
Whatsapp/Call: Mon – Sun (09:00 – 22:00)

Whatsapp Us Now
We Are Here

Address: 50, Jalan Metro Pudu 2, Fraser Business Park, 55100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur Phone: +6011 – 2804 7547 Email: thepeoplesconsultancy@gmail.com

Contact Us

Working Hour

Office: Mon – Fri (09:00 – 18:00)
Whatsapp/Call: Mon – Sun (09:00 – 22:00)

Whatsapp Us Now
We Are Here

Address: 50, Jalan Metro Pudu 2, Fraser Business Park, 55100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur Phone: +6011 – 2804 7547 Email: thepeoplesconsultancy@gmail.com

Facebook Instagram Youtube Whatsapp

Copyright © 2024 The People's Consultancy​