Since you cannot be 100% sure about how your future will unfold, it is wise to adopt this stance – expect the best, but plan for the worst.

The question to ask is: “What’s the worst-case scenario?” If you give importance to this question, it will ensure that you plan comprehensively and cover all possibilities.

Cleverness versus wisdom

When planning for a client’s estate, it is crucial to see things from a “wide angle”. This approach was put forward by Edward de Bono, the authority in lateral thinking.

De Bono likens the concept of cleverness to a “lens with sharp focus” while wisdom is likened to a “wide-angle lens”.

Cleverness is about knowing how to get information and how to use that information while wisdom is about knowing how that information fits into the big picture.

Cleverness is still important when planning one’s estate, but it’s not sufficient. You must be able to see the whole picture and not only focus on random parts.

The trees versus the forest

It is insufficient for one to only see and focus on the trees. A good planner and adviser must help clients see the forest – the terrains, the catchment areas, the direction of the river flowing into the sea, etc.

Only when a planner can see the whole picture, can he gain valuable insights.

Taking the helicopter view

De Bono reiterates further that when one thinks in wisdom mode, one is in essence taking the helicopter view.

This means that everything is seen in perspective and in relation to everything else. It is the ability to see through surface appearances.

Clients must understand the importance of putting things in perspective. It’s important to see the big picture and not get stuck on tiny details.

This is a lot like constructing a building.

There are many different professionals or experts working on the project to ensure the building is erected.

However, be they the civil and structural engineers; electrical engineer; air-conditioner contractor; interior designer; lighting contractor; landscape designer, quantity surveyor; land surveyor; carpenter; plumber, etc, only one person has the whole picture of the building.

This person is the architect. Why? Because he is the one who drew up the architectural plan.

In actual fact, he is the one who conceptualised the design of the building before the building was constructed.

He is the only one who pictured the building in his mind’s eye before anything was drawn up. The others are professionals in their own specialised areas.

The integrated estate planner must see the whole picture

It is the same with the work that an integrated estate planner puts in. He must use a wide-angle lens to be able to see the whole picture.

For example, when a business owner passes on, the integrated estate planner must already be able to foresee all the implications of his client’s death on his estate as well as family members.

Multi-disciplinary practice

Thus, an integrated estate planner must be able to tackle the following:

1. The different laws involved – Probate Administration Act 1955 (in Sarawak: Administration of Estate Ordinance 1933; in Sabah: Intestate Succession Ordinance 1960), Distribution Act 1958 (amended in 1997), EPF Act 1951; Insurance Act 1996; etc.
2. How the various laws interact with each other;
3. The legal, financial, tax, investment, life insurance and business implications of the issues at hand;
4. The family, social and psychological aspects;
5. The worst-case scenario – in the event both adult parents perish together resulting in double frozen estates while young children are left high and dry at home.

Conclusion

Integrated estate planning is a multi-disciplinary practice. It is wise to seek the right advice when planning your estate so that your wishes will be carried out according to your estate plan.

Lee Khee Chuan is a Securities Commission and Bank Negara-licensed financial advisor/representative who has been practising estate planning for over 17 years. He also researches and writes extensively about the subject besides lecture courses for the Certified Financial Planner certification programme.

For more information, visit www.estateplanningmalaysia.com