By VIKTOR CHONG

PETALING JAYA: Over 90% of eligible Malaysians do not have a will. However, the theory that the elderly person goes first does not apply anymore, said Rockwills Corporation Sdn Bhd senior estate planner Chong Mok Yong at the Malaysian Property Expo 2017 ( Mapex).

“Most people presume that all their assets will automatically go to their spouse and children when they are no longer around. This isn’t true. There is a legal process to go through before their assets can be transferred to their loved ones,” said Chong.

“An executor is the person who administers the estate of the deceased. When this executor takes up all the assets, he will have to settle all the debts of the deceased such as his income tax. Once all these obligations have been resolved, then the balance will be distributed as according to his will.

“Without a will, the family members of the deceased will have to go through a very lengthy process to get the frozen assets,” said Chong.

“First, a letter of administration must be derived. To get it, the family members must appoint one person to represent the family. That person must also receive consent from all the legal beneficiaries.

“Under the law, the legal beneficiaries are the spouse, parents of the deceased and also the children. Only immediate family members are included. Brothers and sisters are not a part of it,” he added.

According to Chong, this can be a messy affair for the spouse as he or she must get consent from the mother and father in law. “In Malaysia, if the deceased assets are more than two million, two guarantors must also be found. These people must have assets more or equal to the dead. That will be very troublesome.

“Once these people are selected, the letter of administration will then be issued by the administrator. This administrator will pay off all the deceased debts and distribute the balance as according to the Distribution Act.

“By default, the government has already written a will for everyone. If the deceased does not have a will, 25% of the distribution will go the spouse, another 25% to the deceased parents, assuming that they are still alive and the remaining 50% to the children,” he said.

As 25% of the assets will be distributed to the parents of the deceased, Chong believed that the affair would get horrible if the spouse cannot find an amicable way to settle the problem with their in-laws.

Since the parents of the spouse also have children, their death will result in the small portion being redistributed to their respective children as well. “You don’t want your children to share houses with your relatives. It will be very messy,” he said.

According to Chong, there are also many cost savings that could be derived from having a will. “Transferring your property to someone else incurs stamp duty cost. But payment for stamp duty is not required when writing a will. There is also no inheritance tax,” Chong said.