Given the hustle and bustle of everyday life, it’s easy to overlook the importance of estate planning. In Malaysia, many fail to recognise the significance of having a well-thought-out will, especially parents with young children.

A will serves as a legal document that outlines your wishes regarding the distribution of your assets after your demise. It is a crucial element of estate planning that ensures your loved ones are taken care of in accordance with your desires.

For parents with young children, a will becomes even more essential as it allows you to make provisions for their wellbeing, both financially and emotionally. Here are some key steps to will planning:

1. Take inventory of assets

Before crafting a will, create a comprehensive list of your assets, including properties, investments, bank accounts, and personal belongings. This will serve as the foundation for your estate-distribution plan.

2. Choose an executor

This refers to the person responsible for executing your will and ensuring your wishes are carried out. It’s crucial to select a trustworthy and responsible individual who will handle the administration of your estate.

3. Determine guardianship

For parents with young children, one of the most critical steps is to appoint a legal guardian. This person will take responsibility for your children’s upbringing in the event both parents pass away.

Discuss this decision in depth with the chosen guardian to ensure they are willing and capable.

4. Outline provisions for your children

In your will, clearly outline how you want your assets to be distributed among your children. Consider setting up trusts to manage their financial affairs until they reach a certain age.

This makes sure your children’s needs are taken care of in the event they are not yet of legal age to manage their inheritance.

5. Settle debts and liabilities

Clearly state how you wish for your debts and liabilities to be settled. This prevents your loved ones from inheriting financial burdens, while ensuring a fair distribution of your estate.

6. Other considerations

If you have specific wishes pertaining to charitable donations, bequeathing certain assets to friends, or instructions for your funeral arrangements, include these in your will.

7. Seek advice

While it is possible to create a simple will on your own, seeking expert advice is highly recommended, especially when dealing with complex estates or unique family situations.

A competent financial adviser can provide guidance towards a sound will and estate plan that meets all requirements.

8. Review and update

Life is dynamic and circumstances can change. So, regularly review and update your will to reflect any shifts in your family structure, financial situation, or wishes. Doing this will ensure your will remains relevant and effective.

Lee Khee Chuan is an experienced 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 lecturing for the Certified Financial Planner certification programme.