We had discussed about the importance of Will Writing in previous post, where we understand why we need will writing so badly, and how is the correct way of writing it. We need to have it before our departure, before our last day, and the how we plan for our estate, our wealth.
We know about the do and don’t at importance of Will Writing.
But there are so many UNTOLD SECRET of WILL WRITING
People will tell you all about how to write a correct will but they will tell what they want you to hear, to know. There are few important point we need to take note during will writing session.
You can give your estate to anyone, yes, anyone, you can donate it all out to any charity body too. Most of the people do not write their will with their close friend or someone they know for many years, it is because what ever written in the will is confidential, sometime is the darker secret of a person.
- They might want to take out some one from his legal beneficiary.
- They might want to donate all his wealth to society
- They might want to add in some other name into beneficiary list ( illegitimate child/partner)
- They wanted to add in some T&C for his estate
A will enables you to decide which asset you want to give to which heir, in what proportion and, without one, you have no power over who inherits your assets. Without the will, you can not guarantee anything to anyone.
eg. You wish to pass RM1,000,000 to your youngest daughter so she can pursuit her dream/higher education, you can state this in your will. Without a will, if you have 5 children, they will equally distribute your estate, at the end, the youngest daughter got her potion of RM400,000 or lesser (non moveable asset is not easily sell and distribute).
Is my estate full secure if I have a proper will/estate planning?
No, a lot of people having a bankrupt will if they’re business owner or individual who owe a lot of debt. The debt will result in using all his estate to pay back, and the end, the will is either become zero or become a debt towards the beneficiaries.
How to avoid this from happening?
It can not be avoid, but it can be solve if you have a proper plan for it. You can buy a Life insurance with a high coverage such like RM1,000,000 and listed in the will, it means for any outstanding balance (executor will help you to payback all debt by using this money). Of course there are so many way of doing this, this is one of the methods.
Do not appoint a executor similar age with you (if you are writing your will in late). Most of the time, when a person who in the age of 40 and above, they tends to choose their beloved spouse as executor. Sometime the executor passed away first, and the will is not update the executor, that will be a messy situation. Please choose the right executor or you can put one more name as substitute executor if the primary can not perform his duty.
Do not distribute your estate during one’s lifetime. This is the common action by people before, and present, they thought they can try or make an afford to distribute the moveable and non moveable while they can, to people they loved. Some case, after they fully distributed all their moveable and non moveable, they being abandoned by their beneficiary. Some case, after they fully distributed all their moveable and non moveable, they have no right to rise any concern in the family matter. You can distribute all the estate later, in well planning, in more proper way, why rush?
Please include the T&C if anything happens on you which do not kill you but make you disability or unable to perform daily duty. Please state it clearly, who can help you to do the day to day transaction or else your family will suffer from financial issue.
Estate planning is something you do not see the immediate benefit but it is a long term planning which benefit when the time come, when the time you need it.