Mr. Lee is 78 years old and he has 2 sons. Both the sons are working overseas and have no intention to return to Malaysia.
Mr. Lee has a house in SS2, Petaling Jaya, Selangor which worth RM1.5 million and cash in bank outstanding is estimated at RM5.0 million. These are his major assets.
He wrote a Will and distributes his whole estate among the two sons in equal shares. He felt sad after singing the Will as he knows the 2 sons will never meet again after his demise, as they are working and staying in different countries and never communicate with each other.
Last month, I was introduced to Mr. Lee, after going through his Will, I told Mr. Lee that he can create a testamentary trust in the Will. In the trust, he can still have control over his estate. Finally, after several discussion sessions, the final flow of the Will is a follows:-
When Mr. Lee passes away, Rockwills Trustee Berhad will be appointed as the Executor and Trustee for the Will.
The house will be sold after 5 years from the date of his demise, this is to avoid paying capital gain tax and the liquid assets will be hold on trust until its exhaustion.
During the trust period, the Trustee will:-
- Make donations to certain Charities approved by Mr. Lee, on an annual basis.
- The two brothers have to arrange a reunion dinner every 3 to 5 years in Kuala Lumpur. This is to foster the relationship of the two families. During the re union dinner, Rockwills Trustee Berhad, as the Trustee for the estate will release RM500,000 to each son. The payment to the two sons will end upon exhaustion of the trust fund.
Mr. Lee was so happy and satisfied after reading the Will. He said the Will really makes his wishes come true!
It is very important for Estate Planner to know the concern or wishes of the Testator before drafting a Will for him. A general Will normally is not able to fulfill the wishes of testator as it merely takes care of the distribution assets only.
CHONG MOK YONG
T: 012 303 9383 / 03-7782 1993