The first thing you might ask yourself upon reading the title of this article is, “Why do I need a will?”

Well, there are a number of reasons why. Firstly, you need to prepare for contingencies. Life is not certain, after all. In the event of an unforeseen occurrence, you will still need to continue to provide for your family and loved ones.

Secondly, you may have already amassed some personal assets after many years of working such as liquid funds, investments and property.

In the event of accidents or incidents, your assets will be in limbo; they do not “automatically” pass to your beneficiaries or next of kin just like that.

A will is needed for the transfer and vesting of assets and properties to be legally recognised.

What will happen if you don’t have a will?

In short, a mess. Without a will, your assets will be frozen.

That means no one can deal with your accounts, properties, and other assets. Your estate will be distributed according to the Distribution Act 1958 (and amendments thereto).

Your family members will find themselves needing to apply for Letters of Administration, which is a court order vesting someone the right to administer the estate of a person who has died without a will (this is also called dying intestate).

This is a cumbersome process and sometimes requires guarantors (also called “sureties”).

You would have no control over who is ultimately appointed, and there could be difficulties in finding and getting people with the necessary financial means to step forward.

So, not only does the family have to cope with the emotional aspects of bereavement, they now have to worry about all the procedural hurdles as well.

The benefits of writing a will

As you can see, there are some very clear advantages in making sure that you have a valid will in place.

It is cheaper to extract a Grant of Probate (when there is a will) than it is to extract Letters of Administration (when there is no will). It is also faster, as no guarantors are required for probate.

You also get to choose and specify clearly who will administer the estate and who should be the rightful guardian of your children — if any.

You can also provide for your beneficiaries in a very specific way and know that your wishes will be carried out. This also serves to avoid bickering and squabbles among family members which, as we know, can be very damaging.

As we have seen all too often, families can fall apart when money is involved.

How to write your will

Here are some easy tips to help you get started. However, do note that this applies to non-Muslims only, as Muslim testamentary matters are governed by different laws and procedures.

1. List all your assets

Start out by listing down all your assets. Include details of bank accounts, properties, businesses, vehicles, jewellery, antiques or other valuables, investments such as shares or other instruments.

Note whether these are held in your name or jointly with a spouse or family member. While you are at it, you might as well gather all the supporting documents and place them together in an easy-to-retrieve file or folder.

2. Appoint executor(s)

Think about who you will name as an Executor in your will. You can appoint up to four people.

It is best to have more than one, so that if that Executor passes on or is unwilling to act, another will be able to take over.

It is important to discuss these matters with the person(s) you have chosen. Don’t assume that he/she is willing to act.

You want to be sure that the person you have chosen is going to do the job properly. You could also appoint a trust corporation instead of a person as the Executor.

3. Nominate beneficiaries

This would normally be your immediate family members, but it may not necessarily be so — depending on circumstances.

You are free to choose who or which entity you wish to leave your assets to. Some people have willed all their assets to charitable or non-profitable organisations, as their children are grown up and have acquired their own wealth.

4. Select two witnesses to sign

The will must be signed in the presence of two witnesses, who must also leave their signatures on it.

However, there are certain rules governing this; the two witnesses cannot be beneficiaries (or spouses of beneficiaries), and the will needs to be kept in a safe place.

Make sure you tell your beneficiaries where your will is located, so it can be easily located once you have passed on or in case of emergencies.

Are professional will writers necessary?

While there are no rules that can invalidate a will, it is best to use the services of a professional will writing service such as Rockwills, or a legal firm specialising in probate matters.

Will-writing is really not something you should try to DIY, and plus, you would not want to save money on something this important.

For those who have yet to take this important step, make it your personal goal to get started on this process right away.

It will give you peace of mind when it is time, as you would not have left any loose ends untied. Most importantly, you will be comforted by the knowledge that your family and loved ones will be taken care of.

This article first appeared in kclau.com.

KC Lau’s first book Top Money Tips for Malaysians has sold thousands of copies. He launched the first online personal finance course specifically designed for Malaysians, entitled the Money Automation System. He also co-founded many other online financial courses including the Bursa Method, Property Method, Founder Method and REIT Method.