Many people may believe they do not need estate planning because they are not millionaire and they do not
have much estate. However, do you need to take care of your aging parents, your spouse, your minor children or
other dependents upon your demise? Whether you know it or not, you already have an estate plan. Distribution
Act 1958 (Amendment 1997) has one for you if you do not write a personal Will or designing a plan of your own.
In a nutshell, an estate planning encompasses wealth accumulation, wealth conservation, wealth protection and
wealth distribution of an estate. Various estate planning tools and services that can effectively distribute your
possessions the way you wish include Will, Private Trust, Executor & Trustee Appointment and Business
Will Planning and Will Writing
Many people think that they do not need to write a Will because they are not wealthy or their assets are too
simple to have a Will written.
Whether you have written a personal Will for yourself or not, you have already owned one. For people who died
without a Will, his/her estate will be distributed according to Distribution Act 1958 (amended in 1997). So, if you
want to distribute certain assets to a specific person or group of people, e.g. to distribute a jointly owned house to
the surviving joint owner instead of to a 3rd party who is a legitimate beneficiary under the Distribution Act 1958
(amended in 1997), you must write a Will to enable?the distribution is done in accordance to your wishes.
Can you write your own Will Yes, you can. A Will is a personal declaration of your intentions about the disposition
of your property at death. Getting your wishes or rather distribution instructions clearly stated in the Will is
important. Yet, to ensure your wishes can be executed fully and smoothly upon your demise is equally important.
Often, people overlooked on the execution part, for example, in your Will you have stated that you wish to
distribute a house to your 3 children and hope they can keep it for generations. Upon your demise the market
value of the house is RM900,000. However, it has an outstanding mortgage of RM500,000. Your 3 childrens
finance are not sufficient to support the loan amount and hence they have to force sell the house in order to
repay the outstanding loan. As a result, your wish is not executed.
Thus, a proper Will planning is crucial prior to Will writing.? In the Will planning process, we attempt to eliminate
the uncertainties that could jeopardize the execution of your estate distribution.