Executor

The cornerstone of the Will lies in your choice of Executor because who you choose will determine whether your instructions are carried out when you are no longer around. While most individuals are awared of the duties the Executor are entrusted to, but, few realize the Executor they appoint will be granted temporary custody over the estate which the Executor is going to distribute. They, possess the same power & right over the estate as the deceased person, i.e. issuing cheques, transfer or liquidate the estate be it movable or immovable.

It is understandable that when choosing our Executor, we would consider someone whom we trust or familiar with. None of us would think of appointing someone whom we are uncomfortable with, furthermore if it is a trust corporation especially when fees are involved during the estate administration.

Although there is advantage appointing someone whom we are familiar with, there is risk involved. Selecting an individual to manage your estate may do more harm than good, apart from the risk of loss from misuse or mismanagement. Below is an example...

Frank was a fit man and was always on the go. Already a general manager of a large financial group at the age of 40, with a big house, no liabilities and more than RM 10 million in investments to his name, he was in the prime of his life. At the suggestion of his wife, Angeline, he decided to have his will done, naming his wife and kids as beneficiaries. He appointed Angeline as executor and his younger brother, John, as substitute executor.

One day, he and his wife were travelling outstation. Fate played a harsh hand and they met with an accident that left no survivors. John, in his capacity as executor, took over the administration of his estate. Coincidentally, John was struggling with his business and had a large debt at this point of time. Succumbing to pressure from his creditors, he used part of the proceeds from the sale of Frank’s investments to cover his own debt. The business deteriorated further and he continued his ‘temporary borrowings’ to fund his business losses. Soon, he was using the estate to fund the education of his own children along with that of Frank’s kids!!

Setting up a TRUST

As parents, you would protect your children. For example, you may purchase insurance so that in case something happens to you while they are young, there will at least be cash to provide for their needs. If you have taken insurance, chances are, you may think that you have done enough in providing security to your loved ones by nominating them as your beneficiaries in your insurance policies. Think again...

Are your loved ones completely protected when you nominate them as beneficiaries in your insurance policies? Is that actually enough?

You may want to consider:

• If your spouse is the sole beneficiary to your insurance policy, what happens to the insurance proceeds upon your spouse’s passing? Or,
• If your young children are the beneficiaries, who should claim the insurance proceeds for them in the event both you and your spouse are unable to?
• Are your beneficiaries mature enough to handle large sums of money?
• Is there someone competent enough to assist the beneficiaries?

TRUST

You have probably accomplished a great deal with your life. Over the years you have worked hard, planned and saved.

You have made sacrifices to be where you are. You will want to pass along your wealth to your loved ones with minimal hassle and delay by the legal process. What arrangements have you made?

If you have yet to draw up a Will, then you must have one and update it periodically. If you have drawn up a Will, that is the first step. It may however not be enough. To complete your estate planning process, you may need to create a TRUST.

A Trust is one of the most effective financial planning tools to safeguard your assets for your loved ones. The Trust will contain specific instructions to manage, protect, preserve and distribute your assets. It will also outline the duties and responsibilities of the Trustee.

Trust is a legal arrangement where the creator of the trust called the Settlor entrusts and transfers legal ownership of the assets to another person called the "trustee" under a Trust teed. The Trustee then acts for the benefit of the named beneficiaries in the Trust deed for a specified period of time.

Where is the best place to keep your Will?

Is your Will kept so safe that no one could find except the RAT?? Then it is as good as having no Will...

Although making a Will ensures your wishes will be fulfilled, you should however also ensure that your Will can be found quickly & easily when the need arises. Writing a Will is just half of the story, the other half is to keep it in a secure place.

Some people hide their Wills so well, it is as good as lost! Or, some people would keep it in a bankNot a good idea to keep the Will because when a person passes on, all the bank account including the safe deposit box will be frozen too!

So.... Where is the BEST place? ~~ i) it is known to your family members, ii) confidentiality is maintained, iii) can be found when the need arises in many years to come

Where....? Yes, at Rockwills which offers you the professional custody services for your Will by Rockwills Trustee Berhad. Our unique retrieval service will ensure your Will could be found quickly & easily when the need arises.

Here is why :

1. Prevent tampering and confidentiality preserved
2. Safe from calamities, such as flood or fire
3. Free from deliberate destruction
4. Controlled access with special custody identification card
5. The Unique retrieval system with personal bar-coded custody card
6. Will custody centre with humidity control, CCTV & bio-metric security