We all have people we cared deeply. It can be ourselves, a unique person, family, or even for a specific purpose. The company we set up and businesses or career we built using our heart and sweat all these years. What happens to all your properties if you die now?
We all have people we cared deeply. It can be ourselves, a unique person, family, or even for a specific purpose. The company we set up and businesses or career we built using our heart and sweat all these years. What happens to all your properties if you die now?
It will be freezed!
So that no one can mess with them until the Court gives the Green Light.
How your properties go will depend much on how well you plan (ie. wrote a will) or leave it to the government to manage your property.
If you do not have a will, and to avoid stay hanging or left unmanaged, government created a law called Distribution Act 1958, to direct who get your property. The law clearly stated who is entitled and at what ratio.
For example, if you are married, parent still living and children. The following is how it will be shared:
Parent 1/4
Wife 1/4
Kids 1/2
Be prepared for the drama – Family Dispute
This is usually the beginning of many Family Dramas. If you have the opportunity to talk to a lawyer who does this area you will know how real, dreadful, and how it shaken up the whole family.
Especially if your spouse and the in-law are not in good relationship. Or your spouse and the kids are not in agreement over certain arrangements.
There are so much difficulty to agree on what needs to be done when everyone has a say in the property.
It is also worthy to note that not all family members are entitled. For example, non-married couples, step kids with no legal relation is not within the consideration of the Distribution Act 1958, i.e. they will get nothing.
Two Wealthier Guarantor needed
Even if you are ok with the Distribution Ratio most people don’t like this option. Here’s why :
Since property value are usually more than RM 50,000.00, the court will need 2 Guarantors to give a bond. The value of the bond needs to be the entire value of the deceased’s asset.
Also, if the Administrator of the estate runaway, guarantors need to payout from their own pocket the sum of money. It is a losing end game, no many people would like to take on such responsibility. Hence, it is difficult to achieve.
Take VERY long time to execute
Usually it takes at least 2 to 5 years. That is a very long time. Especially if you have dependent who rely solely on your contribution. They will be placed in hardship.
It need not be that difficult.
There are easier ways which cost less money and time. The ability to plan your estate and manage property tax is an important skill that can be learnt.
There are many things “will writers” tend to miss out on
Even if you have a will, it needs to be advised in the right way. There are so many written wills fail and cause disputes. It is not well structured and well thought of.
There are several factors need to be taken into account. We have the same concerns too. Therefore we invite Dr Choong Kwai Fatt to conduct the seminar on Property Tax and Succession , where he will provide proper, right and practical Tax Planning and Succession guidance in relation to the latest and most efficient structure for properties to be given out as gift after death. For more information about this seminar visit www.synergytas.com/propertytax2019/
