The Importance of Estate Planning: Why Writing a Will Matters
When it comes to planning for the future, many Malaysians often neglect the importance of estate planning. The idea of discussing one's own mortality and dividing assets among family members can be uncomfortable, but it is a necessary step to ensure that our loved ones are taken care of after we pass away.
Contrary to popular belief, it is not illegal to die without a will in Malaysia. However, the consequences of not having a will can be severe for our surviving family members. When a person dies without a will, their assets will be classified as "intestate" and distributed according to intestacy laws.
For Muslims who pass away without a will, surviving family members must apply for a Faraid Certificate from the Shariah Court, and all rightful heirs must agree to appoint the same administrator. The estates will be distributed based on Shariah law, and if there are no surviving family members or no one claims the estates, it will be given to Baitulmal, an Islamic financial institution.
Non-Muslims who pass away without a will must appoint an administrator, and beneficiaries need to apply for a Letter of Administration before the estates are distributed. The estates will be distributed based on the Distribution Act 1958, after deducting funeral expenses and outstanding debts.
Without a will or estate planning, disputes can arise, delaying the process of distributing assets. Beneficiaries may not even know the assets exist if the deceased did not inform anyone about them. It can take up to five years for assets to be fully distributed, leaving surviving family members in limbo.
By writing a will, you can specify who receives your assets, including bank accounts, properties, investments, and other assets. You can also name an executor who will handle the distribution of assets according to your wishes, and avoid the lengthy and often complicated probate process.
In addition, a will can ensure that your children's education and future are taken care of, and that your retirement savings are passed down to the right beneficiaries. It is essential to work with a trusted financial advisor to plan for your future and ensure that your loved ones are protected after you're gone.
In conclusion, writing a will is an essential step in estate planning that should not be overlooked. By taking the time to plan for your future and your family's future, you can ensure that your assets are distributed according to your wishes and that your loved ones are taken care of after you pass away. Don't wait any longer - take action now to protect your family's future.