Do you know that all the deceased’s estate will be frozen upon death? This includes all liquid and illiquid assets. What will be the next steps family members need to do to unlock the estates?
First, family members have to determine the size of the estates. If the gross value of the deceased’s estate is RM600,000 or less and consists only of movables only, family members can go to Amanah Raya Berhad. If the estates consist wholly or partly of immovables, where the gross value does not exceed RM2,000,000, family members can go for the District Land Administrator. If the deceased estates exceed the above requirement or intends to expedite the distribution process, family members have to appoint a lawyer to apply for a Letter of Administration in court.
Where will be the hiccups? Do you need mutual agreement among beneficiaries? YES, you need it. First, among all the beneficiaries, you have to appoint an administrator or a ‘leader’ to run the errands (dig out the assets, list out the debts, pay debts and distribute). Administrator is someone who has huge power over the estate. If all the beneficiaries above age 18, they can appoint at least one administrator. If the deceased leave behind kids below age 18, they have to appoint a joint administrator. Once everyone agrees who shall lead, the other beneficiaries should renounce their right to administer the estate.
Next step is to find 2 sureties who have the equivalent value of the deceased’s estate. The sureties must ensure the estate is properly administered and the account properly rendered. Are you willing to become your friends or relative’s surety?
Do not underestimate these 2 steps above as it may take up a longer time frame than expected. Estimated time frame is about 1-2 years. Once settled, then family members can proceed to start administering. Have a look at the procedure below.
This process may take about 2-6 years depending on how long the administrator takes to search for the assets and liabilities, complexity of the estates, time willing to spend by the administrator and many more. It may not be smooth sailing.
In conclusion, without a written Will it may pose difficulties to immediate family members in terms of time spent, depletion in estate value, more money spent to run the errands and longer duration needed to distribute the estates.
Make your Will done today to protect your loved ones financially and emotionally. Have a conversation with me now for an in depth discussion.
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