Here is a simple case study:
Supposedly, a man intends to bequeath a RM 3 million estate, which consists of a landed home worth RM 700k, a condominium worth RM 1.2 million, and cash amounting to RM 1.1 million, to his wife and children. In addition to will writing fees, upon the passing of this man, there are 3 key expenses to take note, when it comes to executing his will:
1. Execution fees
First, the man might choose to appoint his wife to be the executor of his will. So for him, he might “save on” execution fees. He can retain a larger portion of the RM 3 million estate for his beneficiaries. But, such “savings” may come with the possibility of a “reduced efficiency” in will execution, especially if the clauses as stated in his will are more “complex” to be executed.
Second, the man can choose to appoint a trust company to execute his will. The trust company shall impose a fee amounting to a % of the size of his estate. The % may range as low as 0.8% to 1.5%, depending on his choice of trust company. The plus point is – trust companies are familiar with such processes and capable of executing wills efficiently as they have a team to do so.
Hence, if the man intends to bequeath RM 3 million, the execution cost shall be RM 30,000 per year if the fee imposed is 1% per annum by his trust company. It is advisable for him to decide on:
- Are the clauses in his will “difficult” to be executed?
- If it is not complicated, he can name his beneficiary as his will executor.
- Otherwise, he can name a preferred trust company to execute his will.
2. Grant of Probate (GP) Application
The executor shall start his duties by applying for the GP from the High Court. It is aided by a lawyer and so, a legal fee is applicable. Presently, the legal fee that the law firm I’m collaborating with charges range between RM 4,200-RM 5,000.
3. Legal Fees for Property Ownership Transfer
The law firm that I work with charges RM 4,000 per title transfer. Hence, for the man above, the property ownership transfer fee would amount to RM 8,000 for 2 properties.
So, when bequeathing estates to our beneficiaries, what matters are:
- Duration
- Personal Objectives
- Cost Efficiency
An experienced estate planner is one who is able to balance the three above. In essence, it is ideal to work with a qualified estate planner to work on strategies, plans, and methods to ensure the financial security of our families.
To get a quote, you can begin by filling your details below to book yourself a 30- minute consultation session valued at RM 500. My promise to you is: “You shall walk away with at least one key idea to secure your family’s financial future.”
