Question:
Hi, I’m Mr. Neoh. I have three children namely, Ricky, Rocky, and Rainie aged 25, 18, and 10 respectively. As I write, I have RM 800,000 in cash, fixed deposit, and stocks and two residential properties at Petaling Jaya and Setia Alam worth RM 750,000 and RM 850,000 respectively. Also, I’m now servicing five life insurance policies where their combined sum assured is RM 900,000.
Upon my passing, I intend to bequeath my estate based on the following:
My question is: ‘Should I appoint Ricky, my eldest to be the executor of my will?’
Answer:
Yes, it is possible to have Ricky execute the will upon Mr. Neoh’s passing. Here, let us first understand and appreciate the roles of an executor.
If Mr. Neoh passes on, Ricky will first apply for the Grant of Probate (GP) from the High Court to prove that he is the appointed executor of the will. In order to do so, Ricky needs to prepare a list of documents which include Mr. Neoh’s Will, both assets and liabilities owned and owed, and his father’s death certificate.
This process shall take around 3-6 months.
Then, Ricky is allowed to collect all estates belonging to his father. This includes the transfer of ownership of cash (inclusive of disposal proceeds of stocks), FDs, and properties from Mr. Neoh into Ricky.
This process shall take around 6-12 months.
Next, Ricky is to advertise to locate his father’s creditors and negotiate to settle all outstanding debts owed by his father. Also, Ricky needs to settle outstanding taxes owed by his father to the government and apply for Income Tax Clearance upon settling these tax payments.
This process shall take around 12-18 months.
Finally, Ricky may complete his task as an executor by distributing the
estates in accordance to his father’s will. The whole process shall take at least 2 years, the fastest and it could take 3-4 years if there are hiccups in the expediting process along the way.
So, is this the best arrangement for Ricky, Rocky and Rainie? Here, I’ll list four things Mr. Neoh should consider before having Ricky as his Will’s executor.
#1: The Experience
The job of an executor is not easy. Ricky may feel overwhelmed by various tasks and responsibilities shouldered upon himself. This is because Ricky would need to deal with lawyers, bankers, creditors and tax officers to expedite the process of distributing his father’s estate. It can be a daunting task for one who has zero prior experience in this matter. So, does Ricky know what he should be doing to execute his father’s will?
#2: The Time and Energy
Ricky is 25 years old and most likely, is building his career on a full-time basis. In his case, Ricky’s time and energy will be spent on attending Court Hearings and multiple legworks to the lawyer’s offices, banks and income tax department for the next 2-3 years. Hence, the question is: ‘If Ricky knows the entire process for a will to be executed, will he be interested to assume the role as it is very much time and energy consuming?’
#3: Impartiality
Let’s say, Mr. Neoh passes on and Ricky, as the executor has successfully obtained the GP, collected his father’s estates, and paid off his father’s outstanding debts and taxes owed. Under his name, Ricky holds onto the two properties. So here, the next question is: ‘Will Ricky transfer the title deed of these properties to his siblings namely, Rocky and Rainie accordingly?’
What if Ricky does not do so or delays in doing so? Or worse, what if Ricky sells off both properties and keeps the sale proceeds himself?
Could Rocky and Rainie bring Ricky to court? What if they are totally clueless of their rights as beneficiaries to their properties? Thus, it is possible for Mr. Neoh’s intention of bequeathing his two properties to Rocky and Rainie not to be fulfilled by Rocky as there is no guarantee that Rocky can act impartially to his siblings.
#4: Continuity and Perpetuity
From above, Rainie is 10 years old, hence, will not be able to hold onto the title deed of her property in Setia Alam until she hits 18 which is 8 years to go. Thus,
Rocky is required to hold onto the title deed for 8 years on behalf of Rainie. The question is: ‘What if Ricky happens to pass on prematurely and Rainie remains a minor?’ In other words, Ricky predeceases before completing his tasks as the executor of his father’s will.
Also, this applies to Ricky if he becomes permanently disabled, comatose, or in the event he went missing. How then Rainie is able to inherit her property from Mr. Neoh?
Who’s the Most Ideal Executor for Your Will?
I’m sure the person chosen should have the following attributes:
1. He is trustworthy.
2. He is well-experienced.
3. He has the interest, time and energy to focus on executing the will.
4. He can act impartially to all of your beneficiaries nominated.
5. He will not fall sick, be disabled, go missing, or die. He is immortal.
Mr. Neoh may appoint Ricky because he trusts his son. But, his son may not have the other attributes listed to carry out his duties well as the Will’s executor. This could potentially cause his intentions stated in his written will to not be fulfilled accordingly.
So, who has the attributes stated above?
The answer is a Trust Company. Why? This is because the Trust Company is established with highly experienced staff members such as in-house lawyers, accountants, estate planners, administrators, runners … etc to focus on helping beneficiaries of the deceased’s will to receive their share of inheritance quicker.
They can act impartially to all beneficiaries listed for it is a third party company, not a beneficiary of the Will. A Trust Company is more likely to complete the tasks of an executor than any human being on planet earth for they are almost immortal, will not fall sick, go missing, or become totally disabled.
Hence, if I’m Neoh, I’ll nominate a Trust Company of my choice to be the executor of my will as a Trust Company is more capable of doing the job professionally as compared to Ricky himself.
Choosing an executor to execute your Will is important as without it, your effort in writing a will could prove to be a futile one. Don’t let that be you. To find out more, you can book yourself an appointment with our consultant by first filling up your details below:
