5 Reasons You Need to Make a Will

A will is a legal document that dictates how you want your assets to be distributed after you die. You can also name guardians/trustees for any minor children or who to take care of your business in a will. It only comes into effect when you die, so you can change or rewrite your will whenever you want.

Requirements of a valid will.

Under the Wills Act 1959 in Malaysia, for a will to be valid and effective, it must fulfill the following requirements:-

1. The will-maker (the testator) must be 18 years or older.
2. The testator must be of sound mind.
3. The will must be in writing and signed.
4. The testator must sign the will in the presence of 2 witnesses at the same time. A beneficiary or the spouse of a beneficiary cannot be a witness.

It is always advisable to first consult a lawyer to ensure that your will is in compliance with all the necessary statutory requirements.

1. Dictate the distribution of your estate.

You are free to decide who gets what. In a will, you can choose the beneficiary that would benefit from your estate and decide their respective shares in your estate.

Without a will, your estate will be distributed based on the Distribution Act 1958, which might not be what you want, and an unmarried partner or children born out of wedlock will not be entitled to your estate. As such, with a will, you can safeguard the interest of an unmarried partner or children born out of wedlock.

2. Determine who will manage and distribute your estate.

You will have to choose an executor to administer your estate. An executor is someone appointed to be responsible for the management and distribution of assets to the beneficiaries according to the terms of the will.

You can choose someone who your trust and who will respect your wishes and execute your estate with integrity.

We advise appointing two executors in case one of them becomes unavailable to fulfill his/her duty as an executor.

3. Choose a trustee and guardian to take care of your minor children.

When writing a will, you don’t just decide how your estate is distributed, you can also choose who to look after your children/dependents. If they’re under 18, you can also appoint their legal guardians and trustees.

The future can be unpredictable. In the event both parents pass away without a will, the decision to appoint a legal guardian could be left to the court, who may choose a person you would not agree with.

If the parents left behind a significant amount of money or fortune for the orphaned children, this could attract dishonest people. An uncle, aunt, or a distant relative may view the guardianship as super-attractive with a fortune attached to it.

4. Save time, money and avoid family conflict.

A grant of probate is a grant of permission issued by the High Court to the named executor(s) of a will, empowering the executor to administrate the testator’s estate. In cases where there’s no will, a grant of probate is replaced by a letter of administration in Malaysia.

The process to obtain a grant of probate is more straightforward and faster than applying for a letter of administration.

For a letter of administration, instead of an executor, all the beneficiaries must agree on the applicant and express consent is required. Needless to say, this can lead to disputes and delays in the execution of your estate.

Once the applicant is agreed upon, the beneficiaries would then need to apply for a letter of administration. After appointing an administrator, the process of administering an intestate estate can take more than 2 years. On the other hand, the process to obtain a grant of probate and distribute the estate only takes approximately 3 – 6 months.

Further, as it is common to list the testator’s assets in the will, the beneficiaries would not have to waste time and incur costs to ascertain the assets and liabilities. This also avoids the omission of any assets, which would lead to unclaimed assets.

5. Provide loved ones with peace of mind.

The absence of a valid will can have significant consequences on the distribution of your estate and your loved ones. Having a will provides peace of mind for yourself and your loved ones, especially those who depend on you for financial support.

_{Disclaimer: The information provided herein is not intended to be taken as legal advice.}