Will and estate planning is a frequently overlooked area of financial literacy. It ensures the rewards of your hard work across the decades are distributed according to your wishes, providing security for your loved ones and safeguarding your legacy.

At the heart of estate distribution in Malaysia is the Distribution Act 1958 (amended 1997), which serves as the default set of rules for asset distribution in the absence of a valid will.

Unfortunately, many Malaysians remain unaware of the intricacies of this legal framework, leading to unintended consequences and disputes among heirs.

A will is a crucial document that enables you to decide on the clear distribution of assets under your personal name. It is more than a mere document – it is a means to make sure your intentions are honoured, providing not only peace of mind for your loved ones and yourself, but also eliminating uncertainties and potential conflicts among beneficiaries.

Indeed, estate planning extends beyond the creation of a will: it encompasses a holistic approach to managing your assets during your lifetime, ensuring efficient transition to loved ones – whether it’s financial investments, real estate, or personal belongings.

Without a clear roadmap, your assets may be allocated under the Distribution Act in ways that do not align with your wishes. This could lead to financial hardships for surviving family members, and potential legal battles.

Intestacy, or passing away without a valid will, poses significant challenges. While the Act determines the management of assets, it does not account for individual family dynamics, relationships, or specific wishes.

Proper estate planning, therefore, empowers you to customise the distribution of your assets according to your values and priorities, protecting your legacy and ensuring a more harmonious financial future for all.

Let this basic overview serve as a starting point in 2024 towards more informed financial decisions.

Lee Khee Chuan is a Securities Commission- and Bank Negara-licensed financial adviser who has been practising estate planning for over 20 years. He also researches and writes extensively about the subject, besides providing lecture courses for the Certified Financial Planner programme.