If you feel the duties of an Executor are too compelling to burden your family or friends, have doubts about the abilities and honesty of your potential Executor, or can not find an appropriate Executor, do consider to approach a Trustee Company. It is an excellent alternative to individual Executors. Registered under the Trust Companies Act 1949, it is authorized to act as executor, Trustee or Investment Manager, if required.
The advantages of appointing a Trust Company are :- It will never be biased towards any particular parties resulting an unfair distribution
- It has perpetual existence as compared to individual who may die, incapicitated, becomes of unsound mind or becomes a bankrupt
- It would be in a better position to handle and manage estate administration because of its expertise and competency
- The work done by an Executor is complex and the role of a Trust Company is basically deals with estate administration; therefore there is no issue in facing different obligation.
The individual Executor may charge a fee for his or her services. Often this individual is a relative, and he or she may choose not to charge a fee. If a fee is charged, the amount is regulated by statute, and in others it is what is “reasonable” for the work performed. In Malaysia, an Executor can charge up to 5% of the estate value.
Today, there are more testators appoint a Trust Company as their Executor for total peace of mind knowing your family will not face the problems, the estate administration is a small fee to pay. There are special packages available for reduction of the estate administration fees which amount to substantial saving for the estate.
The Executor is vital to ensure all the final wishes come true. He/She oversees and is responsible for the administration of the entire estate of the Testator until the distribution of the assets is completed. The Executor can be anyone whom the Testator decides on, including a spouse, a member of the family or a close friend. As your entire estate will be vested with your Executor to enable distribution, the chosen person must be honest, capable and a high level of integrity as the duties carried are tedious & time-consuming.
Depending on the size and value of your estate, and the age of your beneficiaries, the role can lasts over an extended period of time. Under the Probate And Administration Act 1959, a Testator can appoint upto 4 Executors to act jointly. When choosing the Executors, consider important factors such as assets management skills and professionalism, as a large assets and businesses may require the Executor to direct, invest or continue these operations to enhance your estate. They will also need time to understand and to garner the expertise to obtain the legal rights to execute the Will so that that neither unnecessary costs not further grief is incurred or caused.
The expertise and legal understanding involves obtaining a Grant of Probate from the High Court by submitting various documents. The Executor has to confirm and settle all the liabilities and debts by writing to Financial Institutions, Government Departments and search for records so that the remainder of your estate can be distributed to the beneficiaries. Upon completion of this, the Executor will prepare a proper set of accounts for the approval of the beneficiaries before subsequently distributing the estate according to the terms of the Will.
