Having a will is part of ensuring one’s financial and family affairs are in order when one is no longer around.

Here are three reasons why you should make sure your will and estate are planned well in advance.

1. Complicated distribution law

The Distribution Act 1958, applicable in peninsular Malaysia and Sarawak, determines how your assets will be distributed if you die without a will. But the law is not intended to be a solution due to its rigidity in specifying who will inherit your estate and in what proportions.

The 1997 amendment that includes one’s surviving parents could further complicate matters for those who stand to inherit the estate.

To illustrate – if a man dies without a will leaving behind his widow, parents and children, the law dictates that the widow will get a quarter of everything he owns; his surviving parents will get another quarter; and the remaining half will be shared equally among his children.

The widow could suddenly find there are other joint owners of the house.

2. Fewer problems, less stress

When a breadwinner passes on, cash flow will be disrupted. The bereaved could have problems continuing to run household finances.

There have also been cases where the deceased leaves family members financially exposed and having to bear the burden of paying off outstanding debts.

When a person dies, most of what they own will be frozen under Section 65 of the Probate and Administration Act 1959. Of great significance is the safe deposit box where important papers are kept. Secondly are liquid assets in the form of bank accounts, and share and unit trust investment accounts.

With a will and estate plan, including a debt cancellation programme, the deceased’s family will not only avoid these problems and heartaches, but also help the executor save time and costs in distributing the estate to the rightful beneficiaries.

3. Retain control

With a will, one can leave behind instructions for loved ones.

It is important to appoint your children’s guardian in case something were to happen to you. It is even more critical if a double tragedy happens to both husband and wife, leaving behind young children.

Parents would also want to set aside enough financial resources so their children can be adequately provided for.

Some beneficiaries might be too young to handle outright ownership of assets. Parents can leave personal instructions and set up a testamentary trust on how the estate should be handled.

A parent could also “time release” his or her wealth to the next generation. This is important as there have been cases where beneficiaries have squandered their parents’ hard-earned money all at once.

Business owners would want to see the orderly succession of their company or its shareholdings. A proper will and estate plan will ensure all these things are taken care of.

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

For more information, visit www.estateplanningmalaysia.com.