Tuesday, October 12, 2010

What is will

A Will is a declaration by a testator (the person who make the Will), in prescribed form of the intention of the person making it of the matters which he or she wishes to take effect upon his or her death, until which time it is revocable. In short, it is a person’s last instructions.

Why need to draw up a will

1. Completing your Financial Planning Picture
By writing your Will, you would have completed your financial planning picture because you have covered yourself with insurance and created wealth (business) and accumulated wealth (investment/unit trust). It is a final step how you distribute your estate.

2. Unlock Frozen Assets in a Shorter Period
Most people will have dependants (parents, spouse, children and so on) who may be dependent on money that they provide. It may cause great difficulties for them if the flows of money stop suddenly. It is important, therefore, that instructions are left in the Will so that the money is made accessible to the right people in the quickest period possible.

3. No Limitations
A well-worded comprehensive Will written today will not become invalid should your assets and estate grow in the future. So, your future assets can be protected by your Will.

4. Peace of Mind
If you write your Will, you can enjoy peace of mind in thought because you have made proper arrangements for the distribution of your assets to your beneficiaries, most important, you are still in control of your assets.

5. Cheaper to Write a Will
Will-writing is considered the cheapest among all the financial services. For the one-time fee that is paid, it will last as long as you do not revoke or rewrite it. Even if you decide to rewrite a Will later, the cost is minimal compare with benefits and protection you enjoy.

A person dies WITH a Will

A person dies WITHOUT a Will

You provide for your beneficiaries in the Will you choose rather that letting the law decides.

Your estates will be distributed to the lawful beneficiaries according to the Distribution Act 1958 (as amended in 1997).

Partner, step children, illegitimate children, aged relative or others who depend upon you can be provided for in a Will.

Under the law, there is no provision for these groups of people. They might fall into financial difficulties without your support.

You exercise the right to appoint people of your choice to administer your estates and to carry out your wishes, safeguarding the interest of those you love and care.

The High Court decides for you. It might not be your choice.

No family contention could arise over the choice of administrator.

A family conflict arises on the choice of administrator.

You may appoint guardian of your choice for your infant children. So that their support, health and education will be taken care of.

The High Court decides for you. It might not be your choice.

No sureties are required for Grant of Probate.

Two sureties are required to provide security for the due administration of the estate. The security shall be equivalent to the gross estate. There will be delay in administration.

It costs less in term of legal fees to apply for Grant of Probate than Letter of Administration.

Legal fees could be costly.

With a Will, the whole legal process could be just a couple of months.

The legal process could take years. Assets could have shrunk in value when Letter of Administration is obtained.

Your loved ones are financially protected.

Your family could be facing serious financial difficulties.

Reference: Rockwills Corporation Sdn Bhd

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