Family finances will tend to change especially with an additional member when there is a newborn. This is one very crucial issue in family planning as to be prepared should anything happens.
Some important issues to consider
The big question really is how important is it to have a will. It is most crucial when you have several assets and savings. Take note that wills are not meant only for the wealthy. As long as you have some form of investment whether in cash or in kind, a will becomes important so that all issues can be cleared. A will allows everything in your estate to be distributed according to your wishes and on taxation issues. As such, preparing a will must be done with the main parties in mind.
What is Intestate?
A person who ides intestate is one who did not leave behind a will. This means the legal process will take its course. In Malaysia, the law will dictate how the assets will be distributed. Generally, the law stipulate that if there are no children:
- A quarter of your assets will be given your spouse and another quarter to your parents
- The remaining will be distributed evenly the two parties
If there are children, then it will follow:
- One third of your assets to be given to the spouse
- The remaining two-thirds to be given to your children
In the event that the deceased did not leave behind any parents, spouse or kids, then other family members like siblings will be given a share while the rest will be given to the government. If the deceased leave behind more than RM600,000, then the government will intervene. This is usually done through an independent executor through Amanah Raya Berhad.
Signing a will
In Malaysia, a will is not needed to be stamped and sealed like other legal agreements. However, you can only do so under a recognized agent and it must be done according to the Malaysian Will Act. This act is the one that will cover the legal representation to avoid any disputes later. That will then make your document legal and legitimate. The will should clearly state all bank accounts especially when there are joint accounts.
In most cases, the beneficiaries are not required to appear in court. This will only happen when any party decides to contest the will or when there is a dispute on what was given.