Estate Planning
Scope: Estate planning ensures a smooth transfer of assets to beneficiaries while minimizing disputes and administrative delays. This includes creating wasiat, hibah or setting up trusts, and updating beneficiary designations. The lack of clear estate planning has caused emotional and financial stress, highlighting the importance of proactive measures to ensure smooth asset distribution and prevent similar burdens for loved ones.
Situation 1
A business owner in Shah Alam with three children owns assets worth RM3 million, including properties and a family-run business. They are worried about ensuring equitable asset distribution while safeguarding business continuity. Without a well-structured succession plan, such as a trust, Wasiat, or business restructuring, there is a risk of family disputes disrupting the business operations and long-term profitability. The owner is also concerned that unequal distribution of assets might harm family relationships, further complicating the matter and affecting stability
Key Questions:
Have you established a trust to manage the succession of your business?
Do you have a will clearly outlining asset allocation among your heirs?
Are there safeguards in place to prevent family disputes over your estate?
Situation 2
A widow in Johor Bahru struggles to access her late husband’s RM1,200,000 estate, now entangled in disputes among family members due to the absence of a Wasiat. The estate defaulted to Faraid laws, leading to disagreements and lengthy legal delays. This has left the widow without access to funds needed for living expenses, debts, and her children’s education.
Key Questions:
Was a Wasiat prepared for the distribution of the estate?
Are there steps you can take now to prevent similar issues for your heirs
How a Financial Planner Can Help
The financial planner will guide clients in drafting legally sound wasiat and trusts to ensure smooth asset distribution. They will review existing nominations on EPF, takaful, and other accounts, updating them as needed. For complex estates, the planner may collaborate with legal experts to create comprehensive plans. Recommendations will focus on preventing disputes and ensuring heirs receive assets efficiently.