Rockwills Trustee Bhd (Rockwills), the leading specialist in estate planning having pioneered wills and trust 27 years ago, stresses on the importance of estate planning to allow for smoother transition of assets to appointed beneficiaries.
In the following Q&A column on estate planning, Rockwills addresses the questions which readers have in mind but do not know who to ask.
Question 1: If I just want to give my assets to my wife and children when I pass away, do I still need to write a will?
Answer: Yes, you should still write a will. Although your wife and children are the beneficiaries of your estate under the Distribution Act 1958, there are still many benefits to writing a will and naming your loved ones as beneficiaries.
With a will, you can appoint someone you trust to become your executor to administer your estate after your death.
Without a will, the estate administration process might be longer due to appointment of administrator and finding two sureties to provide administration bond. Your family will have to wait much longer to inherit your assets.
Besides that, a will can also allow you to set up a testamentary trust. This is particularly useful if your children are under 18 years old.
It can be used to provide for their monthly maintenance, education fees and medical expenses until they are financially independent at an older age.
Also, a will is where you can appoint a suitable person to be the guardian for your minor children until they are 21 years old.
Think of a will as your voice when you are not around. Without a will is like leaving your family in a silence. Your will is their guide in dealing with your legacy.
It tells your family who and how they will benefit from your estate. This can save your family from many pitfalls that you may not have come across in your mind.
Speak to your local professional Estate Planner and let them understand your situation. They will be able to tell you precisely how a Will can be beneficial to your situation.
Question 2: My husband and I both have our own children from our previous marriage. How can I ensure that my assets do not go to his children who are not mine?
Answer: We suggest you have a testamentary trust instruction written in your will. These special instructions in your will can prevent your husband’s previous marriage children from inheriting your assets in case you pass away before him.
Anyone who is thoughtful about the family’s future such as you, should have a testamentary trust in their will.
Assuming you have a house for your husband, the testamentary trust will allow your husband to stay and enjoy the house rent-free while the ownership shall be held on by a trustee until he passes away.
Once he has passed away, the house will then be transferred to the children of your choice. This will prevent your husband from having the control of who he wants to give the house to and at the same time, being able to reside in the house while he is alive.
If you wish to keep open an option to sell, you can give the power to sell to the trustee in the event your husband wishes the house to be sold off then the proceeds shall be used solely for your husband and children’s wellbeing.
If there’s any balance left of the proceeds, it can be held on trust for your own children or given to another beneficiary such as charity. By using this instruction, you can prevent your property from going to your husband’s previous marriage children.
Thus, by using a well-planned testamentary trust in the will, you can make sure your legacy can be enjoyed by your husband and your own children, while keeping it out of reach of the children of his previous marriage whom you do not wish to benefit.
Consult a professional estate planner who has experience in planning for a testamentary trust in a will.
This Q&A Column in published as a joint public service and educational initiative with Rockwills Trustee Bhd. Please email your questions related to Estate Planning to [email protected] or Rockwills’ training and business development assistant general manager Sam Chan ([email protected]).