Tears in Heaven
A 2-month-old baby girl survived an accident which killed her parents, 2-year-old brother and maternal grandmother.
She stands to inherit RM2 Million. The inheritance includes money in banks, investment in shares, properties, EPF and insurance compensation. Her parents died without a WILL or TRUST in place. Her 2 uncles and paternal grandmother now want to adopt her.
Under these circumstances, the baby’s parents would be deemed to have died intestate and all their assets would be frozen. In order to unlock the frozen estate, the family will have to apply for a Letter of Administration (L.A.) to administer the estate. When the family applies for L.A., they have to choose 2 administrators and find 2 Sureties/Guarantors as it involves a minor. Since 3 of her family members want to adopt her, the Court would ultimately have to step in to decide on the appointment of a legal guardian. The decision of the Court may go against the wishes of some family members, but the Court will always decide based on the best interest of the child. The family members may fight to be appointed as the administrator or guardian for self-interest. The time frame to apply for the L.A. can be lengthy and costly.
If the baby’s parents are non-Muslim, their estate would be distributed according to the Malaysian Distribution Act, 1958 (Amended in 1997) i.e., ⅓ to the deceased’s parents and ⅔ to the baby girl. The question is, “Do you want such distribution to take place?” If the answer is no, then you must write a WILL immediately so that you can choose your Executors, Guardian and beneficiaries. In addition, you can also set up a TRUST especially for children who are minors. At least by doing so, we will not be left with only ‘Tears in Heaven’ and watching from the above, our loved ones going through the pain and suffering.
Peter Lee is an Associate Estate Planning Prac-titioner (Wills & Trust) with Rockwills International Group.
He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/ 05-2554853 or excelsec@streamyx.com.
Category: Business, Latest News, Rockwills
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This is a good approach. So far, any response?