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“Why Buy A Cow When Milk Is Cheap?”

ipoh | March 8, 2010 | 0 Comments

“Why Buy A Cow When Milk Is Cheap?”

By PETER LEE

Very often people tell me that they don’t have many assets except a house and some savings in the bank. Therefore, it is easier to transfer their house to their children during their lifetime especially when they feel that they are already old and having health problems.

Such perception reminds me of two stories which I thought only happened in TV dramas. In fact, it does happen in real life and many would have heard of such stories as well.

The first story is about an elderly man who transferred his house to his son because he felt that it’s time to do so as he is getting older and has health problems. Soon after the transfer, he was shocked in disbelief and disheartened when he received a letter of eviction from his son’s lawyer. The second story is about a mother who after transferring the house to her loved ones, was asked to live in an old folks home because they complained she was grumpy.

Although these incidents may not happen to everyone, parents should be aware that these incidents are real. To avoid such situations, it would be much simpler for a person to distribute his/her properties and other assets to his/her loved ones with a ‘WILL’. After all, it does not cost much and it protects a person against such potential problems.

A ‘WILL’ does not require the owner to let go of his/her properties and other assets during their lifetime. Any transfer of wealth will only take place upon the demise of the owner. In addition, a person can change his/her ‘WILL’ anytime he/she wants without the need to get any consent from others.

The executor of the ‘WILL’ is the person who ensures that the testator’s wishes are fulfilled. Thus, it is important to get at least two persons who are capable of carrying out such duties. The discussion with the executors does not require the testator to reveal the contents of the “WILL”, but to seek their consent on taking up such responsibilities.

So, if you consider transferring your properties to your loved ones during your lifetime for even the most respectable reasons, please ask yourself “why buy a cow when milk is cheap?”.

Peter Lee is an Associate Estate Planning Practitioner (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.