What Is Estate Planning In Malaysia
Truth is, an estate plan could be will-based or trust-based. As if life isn’t difficult enough with the unceasing choices we have to make. But fret not, that’s what this article is for. Apparently, for a will-based estate plan, a legal document called the Last Will and Testament is needed. Not only that, it has to cover who your estate plan executor is. The executor is the one who will deal with your affairs, making sure that all the specifications of your will are adhered to precisely. Besides that, it should also state clearly the power given to the executor as well as the things that he/she is responsible for. On top of that, it gives you the ability to name guardian(s) of your minor child(ren).
Wait a minute. I think I’m missing out on something important. Right. The assets. If you don’t assign your assets to anyone then what’s the point of having the executor right? So don’t forget to name your beneficiaries and what they will inherit respectively, including how your properties are transferred to them. For instance, you could opt to distribute your assets to charity, friends, family or even pets, just like what the late fashion icon Karl Lagerfeld did for his beloved Burmese cat, Choupette.
On the other hand, a trust-based estate plan requires a living trust, obviously. Also known as a revocable living trust, it’s also a legal document generated when you’re still alive. What’s that for? You may ask. It enables you to avoid undergoing probate court proceedings just to transfer your assets listed in a trust to your beneficiaries. Your family will be more than happy that you made them skip that long process that could last up to three years, costing as much as 10% of your estate’s value. Not everyone is an exhibitionist and I believe you aren’t one of them either (correct me if I’m wrong). So to ensure your privacy, stay away from probate court as probate documents are open to the public.
Everyone’s ‘alarm clock’ will breakdown one day, we just don’t know when. Hopefully, it’s not as soon as we think it is. So don’t hesitate to get yourself an estate plan and most importantly, bring your will or trust along.
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