BY NG PAU LING pauline@thestar.com.my

LIFE is full of uncertainties. Hence it is important to have a precise and detailed plan to protect your assets if anything happens to you and to ensure that the assets go to the beneficiaries according to your wishes. The easiest way to achieve that is writing a will.

In the recent StarProperty.my Forum, Rockwills Corporation Sdn Bhd senior estate planner Chong Mok Yong shared the issues and processes of distributing one’s inheritance in his talk titled “The Importance of Writing a Will”.

According to Chong, the common misconception is that most Malaysian presume that all their assets will automatically go to their spouse and children when they are no longer around.

He said, however, in Malaysia, all the assets under a personal name will be frozen once the person passed away until a legally acceptable person apply to unlock the assets.

“Ninety percent of Malaysians do not have a will, and this explained the situation of over RM60bil worth of estates of the deceased are held by Amanah Raya Bhd, a trustee company wholly-owned by the Government.

“A will is a declaration made by the testator in a form prescribed by the law on matters which he or she wishes to take effect upon his/her death.

There are four leading roles in a Will:

Testator: A Testator is a person who writes a will. The will must be in written form in any languages.

Executor: The authorised person to execute a will. He or she is legally responsible for sorting out the assets of the deceased and apply for Grant of Probate (GP), a legal document that allows the executor to take action on the assets. He or she will then collect the assets, making sure all debts and taxed are paid, finally distribute the net assets in accordance with the provisions of the will.

Trustee: A trustee is appointed if the beneficiary is under the age of 18, and the trustee acts as a legal owner of the trust assets, be responsible for managing the inheritance on behalf of the minor children or represent the testamentary trust.

Guardian: A guardian is legally responsible for taking care of the welfare of minor children until He or she reached the age of 18.

He said that all the assets would be frozen if a person dies, and the legal estate administration process in Malaysia is different with or without a Will.

“With a valid will, the executor can directly proceed to the application of GP to unlock the assets and then distribute the net assets according to the Will after paid off the debts and taxes. The process usually takes about two months,” said Chong.

If a person dies without a Will, the family needs to appoint the administrator(s) to apply for Letter of Administration (LA). The administrator required fully consent from all legal beneficiaries of the assets.

"The estates of the deceased without a Will is distributed following the Distribution Act 1958. The court, but not the family members, have the right in appointing or deciding guardian(s) and trustee(s).

“There are risks in delaying the process, since it might take up to two to five years to receive the LA, and the legal fees are more expensive compared to the application of GP," said Chong.