Some time last year, a relative of mine passed away very suddenly while he was on work assignment abroad. It was really sudden as he was still in his early 50s and wasn't suffering from any terminal illness apart from having high blood pressure ( I think). The family was caught off guard...he didn't have a will. I think, till this day, the family is still trying to sort out his bank accounts, car, shares..etc.
The above had triggered me to be a bit more proactive in understanding the importance of a will. So..I've been asking around and even spoke to a professional estate planner.
Myth #1: I don't need a will since I don't have many assets
Take the simplest scenario, assuming, Ms A does not own any properties in her name and she only has:
...a car
..a savings account and FD account with a bank
So..one would think that with such simplicity, a will is not necessary, especially when we are young, we won't die so easily. Well, we all know..life is short..an accident or illness can strike anywhere..anytime. Touch wood, if Ms A dies suddenly, and she doesn't have a will, what happens to her car, her money in the bank accounts ?
Bank accounts - even if it is a joint account, the account will be frozen the moment her death is officially recorded. NO ONE can withdraw the money without that 'whatever letter' ( I forgot the exact term) that will normally take 2-10 years to process.
Same thing goes to the car..NO ONE can sell the car without the 'whatever letter'.
Hence, even if you are not rich...you do need to ensure the above doesn't happen. After all, it's Money. You may not need an extensive will but do have a proper and legal document to state the necessary.
Myth #2 : EPF and Insurance already have stated beneficiary, why do I need a will?
Most parents would normally put their spouse and / or children as the beneficiaries in their EPF and Insurance records but what if both parents meet with an accident and passed away together. I'm not being extreme, we know these things happen, very often actually. So.in such sad scenario, if the kids are still young (below 21), they cannot claim neither the EPF nor the insurance funds until they turn 21, hence, money goes to the Amanah Raya (I think, please verify). And you know what I just found out? These funds depreciates in time..interest will be charged, so in ten years time, when the children claim the 100,000 for example, the amount will be worth much less.
So..parents..we definitely need a proper will to make sure the above doesn't happen to our children.
As for Singles (like me), at the very least, we will have to make sure that we update our EPF and Insurance records with valid beneficiaries details. It is very important to for all of us to know that..if our father is the beneficiary but he had also passed away and we have not updated the EPF or Insurance company with an alternative beneficiary before our death - NO ONE will be able to claim her money, even if we had recently got married and have a legal spouse.
I AM NOT A PROFESSIONAL WILL WRITER in case you are wondering.
And I am not promoting for any Will Writing agency.
I'm just sharing my thoughts ...these are just so important for us to know. Don't you think?
Okay..now..assuming you agree with me that we all NEED a will. My next question is do we need a professional Will or a simple document with proper signatories will work just fine.
I've spoken to a few parties over the last few weeks, both professional and non professionals.
Professionals, obviously, strongly suggests that everyone, regardless of how much you have, must have a proper will to ensure that all that you have are distributed ted to the proper individuals when you are no longer around i.e. your loved ones . A professionally drafted Will may cost from as low as RM500 to may be tens of thousands..depending on how complicated you want your assets to be distributed. And of course, being professionals, they know best what are the essential requirements for a Will to be effective. Unfortunately, I wasn't told what the clauses are...haha.
Alternatively, many are convinced that we can do up our own will. As long as the it states an appointed 'executor' and has proper signatories from lawyers, etc. Again, please verify this as I am no professional in this matter.
A friend shared with me a template of simple document which was was used and "proven acceptable" quite recently. It does look quite simple, clearly mentioned, the Executor and Trustee's details and an alternative beneficiary in case the appointee passes away at the same time.
So..how now?
A simple self written seems like a good enough alternative for simple people like me or you? A few more points to think about before we decide:
Second, Third, Fourth Layer
It's quite common for husbands to state the spouse as the sole beneficiary. Be mindful about the possibility of the couple dying at the same time. So..,it's important to have second layer or even third or fourth just in case. And do think about the possibilities of the kids being too young to inherit the much needed funds, hence, the funds will be stuck, can't be touch.
The Executor
Bear in mind that the executor has to bear the responsibility of running around to sort out the official matters in order to 'execute' the will and to make sure the rightful beneficiary gets his or her share. With that, ensure that the person that you appoint will be around (alive or available) and willing to do the leg work when the time comes. Note - an executor's job may involve making sure all assets are properly covered in the process e.g. shares, mutual funds, etc..all these can be daunting in the event of sudden deaths. If you ask me now..I can't even name all the little mutual funds that I have invested in over the years.
In comparison, if your will is done up by a professional, an one-off executor fee (not much) will be applicable and the agency involved is governed by law to be the executor when the time comes. In the event if the company no longer exists, the court / law will assign another valid agency to take over the job. A professional executor, I believe (again, please verify), should have proper avenues and resources to execute efficiently i.e. source for all possible assets owned by the deceased.
Custody
In the most ideal situation, when someone passes away, the moment the death is official, all the relevant agencies, banks, religious department, will agencies inclusive will get a notification. Yes..just like Facebook..notification :D
The appointed will agency will then , I was told (please verify), retrieve the master Will (hard and certified copy) from their system and execute accordingly. Oh, by the way, custody fees will be a separate cost element apart from the will drafting :)
Alternatively, like most people, the safe deposit, under the bed, in the drawer, etc shall be a place to keep the will. But these are subject to risk like misplacement (something I am very capable of), fire, flood, termites, thefts etc.
Have I confused you?
Feel free to share your thoughts. What are you thinking now?
...you see more urgency to draft out a will immediately?
..you need to re-write your will?
..you think prefer to appoint a professional will writer now?
