Estate Administration

There are many matters to be settled by your executor before distribution. This include :

• collecting all immovable and movable assets [including bank accounts, vehicles, shares in companies, unit trusts, house etc];
• settling the debts of the deceased [including income tax and loans];
• applying for grant of probate and submission of the relevant documents to the High Court;
• dealing with government authorities and financial institutions.

Understandably, you may want to appoint someone close to you as the executor. Selecting an individual to manage your estate may do more harm than good, apart from the risk of loss from misuse or mismanagement. The executor will be required to deal with various tedious and time consuming legal matters beginning with the application for probate, attending court hearings, preparing reports, etc. until the distribution according to the instructions in the will. The process can get very complicated. And, can you trust this person with everything you have and will he/she be always there for your beneficiaries?

As a trustee company, Rockwills Trustee Berhad have the experience, the expertise, the impartiality and the checks and balances that will make the estate distribution a smooth process for your loved ones. Why?

• Legal Knowledge of various legal issues
• Professionalism, Expertise and Experience
• Perpetuity and Continuity in administering the estate
• Time to manage and administer the entire estate
• Impartiality and Security
• Trustworthiness and Accountability
• Professional management skills
• Professional indemnity

Estate Administration

Articles taken from FPAM

It is glad that there is a great deal of awareness on the importance of Wills among Malaysians; however, a sizable number of them think that all their estate planning issues are settled once they have a Will written. This is untrue because writing a Will merely indicates the wishes to be carried out after our lifetime. Who carries out those instructions? And how is it going to be carried out when you are no longer around?

So, what is estate administration? .....
During the estate administration process, the personal representative is responsible for locating and collecting the deceased’s assets, paying off the debts and distributing the assets. The personal representative will be an Executor when there is a valid Will or an Administrator when there is none.

Most people are under the mistaken impression that the deceased’s beneficiaries receive the assets almost immediately upon death or as soon as the probate or letters of administration has been obtained. This is certainly not the case because there is a process to follow.

For example, one thing is to try to locate the bank accounts and life insurance policies the deceased have by writing to financial institutions and insurers. Another issue maybe is to find out what real properties the deceased has or which private limited company he hold shares in. Upon the conclusion of the estate administration, the executor is obliged to prepare a statement of accounts to be given to the beneficiaries.

The estate administration can be an extremely tedious and difficult process. The estate administration process may span years.

Imagine if you have only one executor and he dies before the administration of the estate is
completed, in this case, who will be your executor? The answer is his executor (i.e. the executor of the said deceased executor) will also be your executor, who could possibly a total stranger! Therefore, consider appointing a trust corporation to eliminate this uncertainty.

Joint Tenancy

When a husband passed away, he has a joint saving account with the wife. Most people would think:-- when the husband passed away, the wife will get the money automatically since it is joint account. But NO! She could not withdraw even a single cent!! Why.....??

Joint saving account is meant for convenience when either one of the spouse needs it the most. But most people always assume once the other holder dies, another half will get the money automatically which is INCORRECT! Why.....??

When one person dies, the other joint holder of the saving account will get the money automatically IF that particular bank practises 'JOINT TENANCY' - which means when one party dies, the other joint party gets money automatically.

Unfortunately, not all banks practise JOINT TENANCY, some foreign banks practise and most local banks don't. If you want to be sure, just ask your bank if the joint saving account is based on JOINT TENANCY.

Some banks have this clause called “Survivorship Clause“. This is more easily understood….to mean that if there are two or more names in a joint-account, the survivor (the one who didn’t die) gets to have all the money in the joint account.

It is a separate paper for the account holders to sign when opening, or sometimes even after the account have been opened previously, in order to say that the account holders themselves, opt for this “Survivorship Clause”.

Will -- common queries raised

Witness ~ are not beneficiaries under the will and who are not the husband or wives of the beneficiaries. An executor who is not a beneficiary or a husband or wife of any beneficiary under the will may witness the will. A witness does not need to know the contents of the will.

Executor ~ You must have at least 1 and a maximum of 4 executors named in your will. If there are minor beneficiaries, who are below the age of 18 years named in your will, you must name at least 2 executors. The executor need not be a beneficiary but should be at least 21 years old and must have the willingness and capability to act as an executor. If you have difficulties in appointing an executor, you can always consider the Trust Corporations. You may also state in your will that the executors are also to act as trustee to hold any assets or invest or use any money for the benefit of the minor beneficiaries named in your will.

Rewrite ~ You should review your will regularly. You may change your will at any time and from time to time during your lifetime. It is advisable to review your will if any of the following happen to you....

• Change of marital status (married, divorced)
• Change of your executor status (migrate, death, relationship breakdown, incapacity, bankrupt)
• Change of your guardian status (migrate, death, relationship breakdown, incapacity, bankrupt)
• Change of mind with regards to your beneficiaries (children reach the age 21, different beneficiaries)
• Change of your witnesses status (migrate, death relationship breakdown, incapacity)
• New family member (new born child)
• Substantial increase of wealth (started a business, purchased properties)

However, you should never attempt to change your will by deleting words or adding words in or by attaching anything to it. If you do, your will becomes ineffective or invalid unless the changes are properly made.

Under the Wills Act 1959, no obliteration, interlineation or other alteration made in a will, after its execution, is valid or has any effect except so far as the words or effect of the will before the alteration are not apparent, unless the alteration or a memorandum referring to the alteration and written on the will, is executed in the manner in which a will is required to be executed.