Does Estate Planning associate with a Will written? Prior to having a Will written, one have to understand the importance of Estate Planning as to ensure your loved ones are able to receive your assets soonest possible and to your choice of beneficiaries. It is a legacy of love to your family.
So, how to ensure your loved ones are able to receive your assets soonest possible? We all know under the law, all the deceased's assets will be frozen until Probate (where there is a valid Will) or Letter of Administration (where there is no Will) granted by the High Court. Therefore, the dependents are unable to withdraw the money from all the bank accounts, sell/transfer the ownership of the properties i.e. houses, shares, unit trust, cars etc. If a person dies without a valid Will, there is delay in unlocking the frozen assets and incur unnecessary costs.
And, the first issue is to appoint an Administrator of the estate. Since there is no Will to appoint the deceased’s choice of Executor, the petition for a Letter of Administration is normally filed by a beneficiary who has priority over other beneficiaries. Every other beneficiary must agree to the appointment and renounce their rights to petition. This can at times be a problem when the beneficiaries cannot agree on whom should be the administrator. This dispute may turn into a legal suit, who knows, it may drag on for many years... Would you like that to happen to your dependents?
Next, is to look for 2 sureties, akin of Guarantor. Each of the sureties must be willing to provide an administration bond more or equivalent to the gross value of the estate of the deceased. Obviously, it is not easy to find 2 sureties unless they have an interest in the estate or they have a special relationship with the deceased. The purpose of the sureties is to protect and secure the creditors and beneficiaries against losses caused by the improper administration of the estate.
The court may have its discretion to reduce the number of sureties or dispense with them, and/or reduce the amount of the bond. In the event where a trust corporation is appointed as the administrator or where the gross value of the estate does not exceed RM 50,000, no surety shall be required. No also required if the administrator is the sole beneficiary of the estate.
When all these requirements have been fulfilled, the High Court will then issue the Letter of Administration and only then can the deceased’s estate be distributed according to the law of intestacy.
By having a Will, all these hassle could be avoided. You also exercise your right under the Law to appoint people of your choice to administer your estate and carry out your wishes, ensure and safe guard the interest of those you love and care.
