When someone passed on, under the Malaysian law his/her estate will be FROZEN and to unlock the frozen estate, the following are the legal administration process (in general with exception):-

To apply for LA, the deceased's family may need to fulfill certain requirements e.g. looking for 2 guarantors; the appointment of the administrator(s) need 100% consent from all legal beneficiaries; appointment of guardians for minors who will in-turn give consent to the appointment of administrator(s) etc, thus, this process could take 2 to 8 years and in between family contentions could occur.

1. Require two guarantors

• Family members might have difficulty to look for the qualified guarantors. The guarantors must have a net worth equivalent to the gross value of the deceased's estate.
• This results in the delay in estate administration. Beneficiaries might take a longer time to receive their shares of the estate. The delay might result in estate shrinkage and beneficiaries might receive less due to the shrinkage in estate.

2. Conflict & problems faced over the appointment of administrator(s)

• The Court requires 1 or 2 administrator(s).
• Family contention arises over the right to be appointed as the Administrator(s).
• There is risk of the Administrator(s) absconding the estate.
• Appointed Administrator(s) may lack competence to perform.
• Family might not be able to obtain the 100% consent from all legal beneficiaries required.
• When there is a minor beneficiary, two Administrator(s) are needed.

3. Legal Fees higher to apply for LA

• To apply for LA, the family members might receive less due to the generally higher legal costs incurred.

4. Financial difficulties faced by the family as it takes more time to apply for LA

• Normally it takes 2 to 5 years OR MORE, thus dependants may face cash flow problems as the deceased's bank accounts are frozen.
• Distributions under the Law might results in a change in ownership in businesses/companies of the deceased which might lead to fragmentation and loss in continuity and control.

5. The Law takes over your 'RIGHT' to name your beneficiaries

• As there is no Will, whom your beneficiaries are and the proportion for distribution are decided by the law. The distribution may not be that of your choice, and you lose your Right to distribute your hard earned assets the way you want it.
• Under the Law, there is no provisions for partner, stepchildren, illegitimate children, relatives whom you support.

6. The Law takes over your 'RIGHT' to appoint trustees and guardian for your minor children

• If both parents die in a common disaster, the Court decides who are the trustees & guardians for your minor children.
• The appointed person(s) might not be competent to perform the job.
• Welfare of minor might not be taken care of.
• Misuse of funds by the appointed Trustee might happen.
• You lose your Right to choose your preferred trustees/guardian.

Did you know?

That when someone passes on, all his assets including his/her banks account (joint/sole name), CDs share accounts, properties, private limited shares, business will be FROZEN?

Did you know?

In 29/5/2020 it was reported in China Press, our Deputy Prime Minister said there is a total of RM70 billion worth of unclaimed cash and assets left by the dead. To avoid the problem, he urged fellow countryman to write a Will to avoid facing problems of claiming FROZEN assets of the deceased (please refer to CHINA PRESS dated 29/5/2020 - https://www.chinapress.com.my/?p=2052492 ).

Have you ever wondered?

That if both parents were to go together, who will step into the parent's position to take care of the children's education and welfare? Who will be the guardian?

You may not know...

That without a Will, your loved ones might have to wait for years; running around searching for the required two guarantors. You lose your RIGHT to appoint the executor of your choice to administer your estate & your preferred trustees for your minor children.

You ought to know...

That without a Will, your assets will be distributed in accordance to the Distribution Act 1958(As amended in 1997). Under the Act, your assets will be divided between your surviving spouse, children and parent(s) in a certain proportion (1/4, 1/2, 1/4). More problems arise if your parent(s) pass on soon after you. Your assets may be subdivided further between your brothers and sisters etc. Result? There will be many more additional claimants!

Have you ever wondered?

What will happen to your loved ones / dependants if they are unable to receive your assets in the shortest possible time after your demise?

You may think...

That you do not have much to give away. The truth is writing a Will has little to do with your net worth but everything to do with leaving a legacy of love and care.

Did you know?

90% of your assets are without beneficiary(ies) & 90% of eligible Malaysians do not have a Will? Thus, there is an urgent need to write a Will. If not, the law will decide who your beneficiaries / trustee / guardian, NOT YOU! Assets may become FROZEN AND UNCLAIMED under the Law. Why leave it to the law when you can decide in a Will?

Have you ever wondered?

Have you considered why you will make sure you have named beneficiaries for your insurance & Employees Provident Fund (EPF) payouts but omit to name beneficiary for your assets like house, bank a/c, car, land, shares etc?

It is always not advisable to write our own wills because we might not achieve what we want and avoid what we don't want. The following might happen:

• Partial intestacy - No residuary clause
• Easily subject to contest in court, may cause future problem
• May not be granted a Probate - Vague
• Not fully aware of certain legal implication
• May not take care of your worries
• No assurance/protection to beneficiaries e.g. no trust fund to protect family members
• No appointment of guardian for minor children
• May not help to realize your goals!