Rockwills
By Peter Lee
Due to a serious accident, both John Lee and Connie were left paralysed and could not act as Co-Administrators for Lee Sr’s estate. Therefore, the estate is left with Michelle, the third Administrator, who is the only one capable of administering the estate at present. After family members briefed John Lee and Connie, they agreed to relinquish their position as Administrators to pave a way for a replacement. However, Connie’s idea of a replacement was to appoint someone who is an independent party instead of Michelle. Therefore, all family members agreed and decided to appoint a trust company on the recommendation of Dave (Lawyer). During the discussion between family members and the representatives from a Trust Company, Michelle asked about the Trustee’s fees for administering her father’s estate. In reply, the Trust Company’s representative said, “The administration fee charges will be segregated into three categories.”
“The fees involved will not be more than 1.8% on average based on the market value of the assets and the fees will be on an annual basis until our Administration work completes. Therefore, the speed of our Administration work depends on when we will be appointed officially as the sole Administrator.” Michelle then asked the Trust Company’s representative whether there is any discount on their fees. Before the representative could answer, her mother, Mrs Patricia Lee, intervened and said, “I don’t think I want to argue on the fees. I just want to proceed instead of waiting. Anyway, to give out 100% of the assets, we are using 1.8% of it to ensure that the distribution is done in an efficient and professional manner. So, are you guys okay with the appointment?” she said while looking at her children. All of them then nodded and confirmed the appointment of the Trust Company. Mrs Patricia Lee then asked “What’s the next step?” Dave (Lawyer) who is in the meeting replied, “The next thing I have to do for the estate is to make an application to the High Court to withdraw the names of the existing administrators, that is, John Lee, Michelle and Connie and replace them with the Trust Company.”
“Meanwhile, I will prepare letters for all family members to sign consenting to the appointment of the Trust Company. At the same time, I would also have the letters of renunciation ready for the existing administrators, namely John, Michelle and Connie, to sign renouncing their position. These documents are essential for making the fresh application for a Letter of Administration (L.A.). Therefore, once I have drafted all these letters, I would need all of you to co-operate in signing them as soon as possible.” Mrs Patricia Lee chipped in and said, “I don’t think we have any other choice but to co-operate.” Then the Trust Company representative stepped in and said “Once the administration work commences I will need the co-operation of all family members to furnished all the list of estate’s assets because all these assets must be transferred to us when we obtained the L.A.”
To be continued…
