Nonetheless, it does not matter how many years you have those properties. As long as you own multiple assets regardless off the length of time, they are all yours nonetheless. If you own multiple properties and have no idea how to include them in your wills and trusts, then you have come to the right place. 

In this article, we will highlight key points in how to include them in your wills and trusts. Estate planning for people and families with multiple properties are not necessarily the most difficult thing in Malaysia. We will summarize everything into bite size information to make things easier to digest. 

List down all the assets you have first 

This is the easiest thing to start things off with. When you have a lot of assets and properties, you are bound to miss out one or two of your assets. Don’t just list out the assets you have in Malaysia. If you have assets outside of Malaysia, it’s best to list them down as well. 

It does not matter if you only have one asset outside of Malaysia. Just list it down nonetheless. It’s just as important as any other assets that you have within Malaysia as well. 

Assets do not just limit to properties and financial accounts. It can also include cryptocurrencies as well. As cryptocurrencies are everywhere, there are bound to be people who have a piece of it. You may have some so it’s worth including it in this list. 

Talk to a lawyer 

After listing down all the assets that you have within Malaysia and beyond the country, your next step is to reach out to an experienced lawyer. An experienced lawyer will walk you through what else is needed besides the list of properties you have just come up with. 

Usually, you will be asked to produce a legal document stating that the asset is owned by you. This is all for legal purposes and the future of those assets. Those documents can include title deeds, legal letters, etc. 

Creating a will 

The next step will be creating a will. Creating a will is not exactly the most complicated thing in the world. In the will, you can include all the assets you have previously listed out. Don’t forget to have the legal documents stating your ownership included as well. 

In the will, you will list out all the beneficiaries you wish to include. Usually, people will include their family members. Sometimes, some people may include their friends, girlfriends and/or concubines. For some people, they may even include their pets (it’s possible). 

At the same time, you will also state how much each beneficiary will get from your assets. If you only have 3 people named in your will, most people often will go 33.3% for each named beneficiary. 

If there are no beneficiaries named in the will, and you do not have a will, then things will work out differently. If you find yourself in such a situation (usually it’s your family members), then your assets will be distributed as per Distribution Act Malaysia. 

Appoint a Trustee 

Assuming that you do have a will in place and everything listed in it, then you will next appoint a trustee. A trustee is someone who helps distribute the assets listed in your wills to the named beneficiaries. They ensure that everyone gets their fair share of your assets as per listed in your updated will. 

A trustee is not an executor, who is a different person who handles different aspects of your will. However, a trustee will continue to oversee the distribution of your assets for as long as they are around. If there are any conservatorship or guardianship appointed, the trustee will see to it that they carry out their duties. 

An executor may be appointed 

Sometimes, even though you have a trustee appointed, it does not mean that it will end just there. In certain situations, an executor may be appointed to work alongside a trustee. An executor is someone who is appointed to locate more assets under your name – inside and outside of Malaysia. The executor will also ensure that all debts are paid off before the assets are being distributed to the named beneficiaries or next-of-kin. Note that this may take a long time depending on how complex the matter is. 

However, an executor is not like a trustee. An executor is only temporary whereas a trustee is permanent. Once the debt has been paid and all the assets located, everything else will be handed over to the trustee and the beneficiaries. The executor will exit itself thereafter. 

The trustee, on the other hand, will take over the newly found assets (or the remainder, depending on the situation). S/He will then ensure that the remaining assets will be distributed to the beneficiaries in the fairest possible way. 

Consider having a living trust 

We know this sounds like it’s a lot of things to consider for your future – but anything to fortify your future for yourself and the people around you. If in any situation, you find yourself in an accident or illness. You may find yourself incapacitated, which is not the best state to be in for anyone. That means you can no longer carry out your day-to-day tasks and work like usual. You may be bedridden or wheelchair-ridden for the rest of your time. 

If you’ve found yourself in such a situation, fret not. You may consider having a living trust for yourself. A living trust is a legal document stating what will happen to you and your assets when you become incapacitated. In the very same document, you may say who will take care of you, what’s going to happen to you, etc. 

You can have a living trust besides a will. It works and both can run alongside each other and still be valid. You don’t have to worry about whether if you should retract one to let the other one run on its own. 

Bottom Line 

Estate planning for people who have multiple assets and properties in Malaysia (and outside of the country) is not necessarily a complicated thing. Should you need any help with estate planning and will writing, feel free to reach out to us today. We will be more than happy to help you with your wills and trusts

Malaysians may not be aware but here’s how it is done. 

What is a Grant of Probate? 

Before we go further, allow us to explain what a Grant of Probate (GOP) is. A GOP is a legal document you need in order to have the power and authority to administer the dead person’s estate. Estate is a loose term to refer to all the assets and properties under the deceased’s name. 

If the deceased has a valid will, then you will next need to apply for a GOP. The timeframe to apply for a GOP document takes around 4 to 6 weeks. However, that timeframe may take longer depending on how complex the matter is. It is possible for individuals to apply on their own, there will be quite a number of paperwork needed. You may hire an experienced law firm to help reduce the stress for yourself and make the process smoother. 

What if there is no Grant of Probate? 

If there is no Grant of Probate, then you will need a Letters of Administration (LOA). A LOA is issued when the deceased has no will, valid or not, in their name. Their next-of-kin will need to obtain such documents where they can apply for one from the High Court of Malaysia. 

Again, like applying and obtaining a GOP document, the process may take several weeks. Depending on how complex the situation is, the application timeframe may take longer than usual. 

Where does the Malaysian Government come in then? 

This is what the Malaysian government will do for you in such situations. They have implemented laws to ensure the next-of-kin are able to obtain their portion of the assets and properties in fairness and in the smoothest ways possible. 

a.      Distribution Act  (1953) 

In the event that your deceased family member did not leave behind a will, valid one or not, then there is the Distribution Act (1953) for you. The Malaysian government has implemented such law so that just in case you cannot obtain the assets and properties smoothly, you may go to them for help. 

You may refer to the below table for the distribution of the available assets once held by the deceased. 

Please be reminded that the abovementioned table is the distribution detail for West Malaysia and Sarawak. However, if you are from Sabah, you may be subjected to a different set of rules. 

The Distribution Act is not applicable to Muslims. It is only applicable for non-Muslim citizens and residents of Malaysia. Under Islamic Law, the deceased person’s estate will be distributed in accordance with the Holy Al-Quran and hadith. 

b.  Public Trust Corporation Act (1995) and Probate and Administration Act (1959) 

No trustee to help you distribute your assets? That’s not going to be a problem for you. Not every appoints a trustee for their own assets for various reasons. And that is perfectly all right. If you cannot appoint a trustee for reasons that are their own, the Malaysian government has their own trustee and probate divisions. No sweat there! 

A trustee will be appointed for you and your case and they will see through the case for you for the length of the case. If the deceased has left behind a sizeable estate, you may or may not have to pay a processing fee. Refer to the table below to expect roughly how much you will need to pay.

 Table Screenshot via PROPERTY GURU

Bottom Line 

People always thought the government does nothing or little for such matters for their citizens. In all honesty, they do help – just that most people are not aware of it. Just in case your family member passed away and left behind no will, you can always turn to the government for help. If you need further assistance or have any enquiries, feel free to reach out to us for help. We are more than happy to help you in this matter.

The reasons why guardians are appointed to watch over minors are many. The minor’s parents may no longer be around hence a guardian is appointed in place to watch over them. A guardian’s role may vary too from person to person. 

A guardian should not be confused with a conservator. A conservator is appointed when the person is disabled or mentally unsound to make their own decisions. Sometimes a guardian may be appointed to look after disabled people and people of unsound minds. However, a conservator takes over much of the legal side of things for the disabled person or person of unsound mind. 

What can a guardian do? 

A guardian has legal rights over a child – an individual not of legal age. The guardian of the child can help to apply for identity cards, passports, and school for the children they are looking after. They are also responsible for the child’s overall support, health, and education. 

Not everybody can be the legal guardian of a child. Under the law, both the biological father and mother only can be the legal guardian of the child. If the parents are divorced, the civil court may appoint either one of the parents as the legal guardian of the children. In some cases, both parents can be joint guardians of the child under a joint custody to either of the parents. 

In any given case where both parents have passed away, then a relative may take over and be the children’s legal guardian. The new legal guardian can be an aunt or uncle, or even a grandparent. The New legal guardian may file for an application to the court with the help of a lawyer. Through a lawyer, they may apply for the guardianship or custody of the children. 

However, there are cases and scenarios where people may dispute the guardianship of the children. Some relatives believe that they make better guardians of the children, hence wanting to take over as their legal guardians. 

If that was indeed the case, you may consult a lawyer and be advised upon knowing all the background and circumstances of the dispute. By the end of the day, the children’s overall well-being should be in everyone’s paramount interest. 

Are there any other alternatives to guardianships?

Yes, there are alternatives to guardianships. They may include: 

• Case or care management
• Healthcare surrogacy
• Trusts
• Powers of the attorney
• Living wills
• Community advocacy systems
• Community agencies and/or services
• Support decision-making networks. 

Note that although these may be alternatives to legal guardians, it may not have the full rights of a legal guardians. If unsure, please consult one of our lawyers for further assistance. 

When should you appoint a legal guardian? 

Basically anytime in point, in all honesty. There is no timeframe or deadline for anyone to appoint a legal guardian for your children. However, here are some circumstances where and when you should appoint a legal guardian. 

• Before you set foot traveling overseas without your children
• As you began aging and you still have underage children
• When you are really sick and have no cure for your illness or disease
• Before you undergo a major medical procedure or treatment
• After a divorce
• After you have remarried

If an appointed legal guardian suddenly becomes unable to fill their role as the legal guardian (eg: death, illness, etc) 

Bottom Line 

If you need to appoint a legal guardian today, feel free to talk to one of our lawyers. Appointing a legal guardian should not and is not a complicated matter. Reach out to us and let us walk you through the process.

Your wives may not necessarily know but they are part of your lives nonetheless. For some people, setting aside some of their assets for their girlfriends and concubines is a big thing. They do not wish to have their wives and girlfriends be left out of inheriting their share of the assets. 

Note that in Malaysia, girlfriends, concubines, and mistresses don’t often have legal rights to your assets. Your immediate families and relatives have rights to your assets upon your death – but with conditions too depending on the situation. When you have passed away, oftentimes your assets with be distributed among your immediate family members. If you are not married your assets will be distributed to your nearest next-of-kin. 

If you are one of these people who have a concubine or girlfriend, read on to find out why you should create a will to protect them – where applicable. 

1.      Concubines and girlfriends don’t have legal rights to your assets 

Not in Malaysia anyway, in the very least. If you did not leave behind a will, then your assets will be distributed to your immediate family members – if you have any. If you are married and have kids, they will receive your assets. If you are not married and have kids, then your assets will be distributed among your parents and siblings – if you have any and if your parents survive you, that is. 

It does not include your girlfriends and concubines. Sorry to break that to you. Your assets will be distributed as per the Distribution Act (1957) and you may read all of the details here. 

2.      Putting them in your wills nonetheless 

You may include your girlfriends and concubines on your wills. As you include your girlfriends and concubines in your wills, you may have a no contest or no challenge clause included in it. However, do note that your immediate family members may contest those terms in your will for reasons that are their own. 

They can have a myriad of reason to challenge your will. The most common reason being that they do not recognize your concubine or are just not in good terms with your girlfriend. Most times there are bad blood between the wife or family members and the concubine or girlfriend, hence challenging your will. 

If you are a girlfriend or a concubine, be ready that most times the assets will not go to you despite being named a beneficiary in the will. The law is made to protect immediate family members and the deceased’s biological relatives. 

3.      Having a “no contest” clause included in your will 

You can have a “no contest” or “no challenge” clause included in your will where part of your assets will be given to your girlfriend or concubine. If there is no one else challenging the will, then yes the assets will go to the girlfriend or concubine. Note that if the will is not overturned with 6 months of distributing the assets, then your relatives will have very little to no chance of recovering the assets. 

Note that as soon as the will is granted at the grant of probate, there is certain risk to it. The beneficiary who is the girlfriend or concubine may have spent on the assets when they have received it.  

When they have spent on the assets, it will be difficult to recover those assets. Consider the legality and the costliness of the logistics of this matter. If you are a wife or a parent slighted by the concubine or girlfriend, how far are you willing to make their life as difficult as possible? Are you ready to spend all the energy and money to get the assets back and make their life hell? 

4.      Preventing your family from challenging your will 

You can try to prevent your family from challenging your will. Your family members may believe that your concubine or girlfriend has influenced your decision in including them, hence challenging your will. 

You will need to provide proof that your girlfriend or concubine has no fiduciary relationship with you. Fiduciary relationship means you have a beneficial relationship with another person. In this case, it often includes having a love child between you and the concubine or girlfriend. That love child may benefit from your will and get part of your assets in this situation. 

Bottom Line 

Make wise decisions when it comes to including your girlfriends and concubines the beneficiaries to your wills. It is not to say they do not deserve your assets nor your protection. However, if your family members do not agree to you having a concubine or your girlfriend, then you will face a rocky future. 

If you need help with protecting your concubine or girlfriend, talk to us about having a will today. We are more than happy to help you with preparing your will.

Bringing your new spouse into your estate planning may be complicated. However, if you have children thrown into the mix, the matter may be a bit more complex than it seems. Understanding some of these important issues surrounding second marriages can help you with reshaping your estate plan. Here are some things to consider when you are planning your estate after entering your subsequent marriage. 

What happens to my existing will upon divorce? 

That is a valid question asked by many people after they have divorced. When you have successfully and legally divorced from your spouse, your existing will that includes them will no longer be valid. That existing will is automatically revoked upon your remarriage to your new spouse – if you ever remarry, that is. 

The only time and exception when that will “remains valid” is its inclusion of a “contemplation of marriage” clause. However, it does not mean that the will is entirely invalidated after your divorce. It just means that you will need a new will in such circumstances. 

Restriction on your spouse’s rights 

You will have substantial discretion to determine the restriction on your spouse’s rights. It may involve naming someone else other than your spouse to be the trust or trustee. You may quite likely choose one of your children to be the trustee instead of your spouse. In other options that you have, you may want to allow your spouse to receive income from the trust property but disallow them from being able to spend on the trust principal. 

If you own real estate, it is understandable that you will want to stay in the house with your spouse from your second marriage. At the same time, you may also feel strongly that you will want the house to belong to your children from the first marriage when your spouse has died. 

You can have that done by putting the estate in a trust that allows your spouse to use it but disallow them from selling it. You can also include clauses about whether your spouse can rent the house and peruse the rent income generated from it. 

Usually, it is spouses from subsequent marriages who create these types of trusts. It may or may not mirror each other. Imagine if each spouse leave their half of the house to their children, the children from the 2 different marriages may need to work out some ways to divide its values after the parents have passed on. The children may or may not know or trust each other. In such situations, it can lead to many complications in the near future. 

What can you do in such situations? 

Choose a trustee. With any trust, a trustee can have substantial authority. Trustees can help to manage the property in trust and ensure that your spouse is complying with the restrictions on their use of trust property. They can also determine whether payments to your spouse from trust funds are appropriate. 

You will understand that your spouse and children may have fundamentally different goals and needs along with conflicts that may be unavoidable. At the same time, retain a lawyer to help you make the trust documents as clear and fair as possible. In the end, the final decision is yours to make. 

Bottom Line 

Getting a divorce is already taxing enough. To have to rewrite your will to fit in the needs of your ex-spouse and your new spouse can make things a lot more complicated. To make things easier for you, appoint a trustee – someone you can trust – to manage your estate easier for you. That way some of your worries regarding estate planning will be put to sleep.