As people age, one of their greatest fears is being neglected after they have distributed their wealth to their heirs. Unfortunately, many elderly individuals in Malaysia find themselves in situations where they have given away their assets but receive little to no care in return. So, how can this be prevented? Here are some practical solutions to ensure that seniors are well taken care of while protecting their assets and interests.
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Plan Your Will Instead of Transferring Assets Immediately
Many elderly individuals believe that transferring their assets to their children while they are still alive will secure their care in old age. However, this is not always the case, as once the transfer is complete, they no longer have control over their property or finances.
Instead of giving everything away immediately, it is advisable to prepare a will and distribute assets only after passing.
Why is this a better option?
- Retain Control: By keeping ownership of assets until death, elderly individuals can ensure they have financial security and leverage for their own well-being.
- Legal Fees Are Similar: Whether assets are transferred during one’s lifetime or after death, the legal fees are quite similar. However, transferring after death through a will allows the individual to retain control during their lifetime.
- Avoid Future Family Disputes: If an elderly person transfers assets while alive but later faces neglect, they are unable to reclaim the assets. A will ensures assets are only given to beneficiaries who fulfil their responsibilities.
For example:
Mr. Lim, an 80-year-old retiree, transferred his house to his eldest son while he was still alive, hoping his son would take care of him. However, after the transfer, his son neglected him, and he had no legal way to reclaim the house. Had Mr. Lim written a will instead, he could have maintained ownership and made changes to his beneficiaries if necessary.
2. Gradual Wealth Distribution
Instead of transferring all assets at once, elderly individuals can opt for a structured or gradual distribution of wealth. In Malaysia, this can be done through a testamentary trust that dictate when and how assets should be given to beneficiaries. This ensures that they retain financial control and leverage ongoing care and support.
To learn more about Testamentary Trusts, visit: Why Do You Need to Set Up a Testamentary Trust for Your Minor Children?
3. Secure Future Care with an Insurance Trust
One of the most effective ways to secure both financial stability and proper care in later years is by setting up an Insurance Trust.
What is an Insurance Trust?
It is a legal arrangement where an independent trustee manages life insurance proceeds for the benefit of the elderly individual and their beneficiaries.
When is the Insurance Trust Activated?
The trust is activated in any of the following events:
i. Total and Permanent Disability (TPD) or Coma: The insurance payout will be given to the settlor to cover medical and living expenses.
ii. Critical Illness Diagnosis: The payout will be made available to the settlor to cover treatment and care.
iii. Settlor’s Death: The payout will be given to the trust beneficiaries according to the trust’s terms.
Appointing a Caretaker: The settlor can appoint a caretaker within the insurance trust. This person will be responsible for overseeing their well-being if they suffer from TPD, coma, or critical illness. Alternatively, the trust can allocate funds for professional care at a private nursing home.
Protection from Misuse: Since a trustee oversees the distribution, the funds are protected from misuse by heirs or other parties.
To learn more about how an Insurance Trust can safeguard your future, visit: What is an Insurance Trust?
Neglect after wealth distribution is a real concern for many elderly individuals in Malaysia. By carefully planning their estate with wills, insurance trusts and structured asset distribution, they can safeguard their well-being and financial security.
To ensure that your assets are well-managed and you receive proper care in your later years, explore Insurance Trusts and other estate planning tools today.
You may make an appointment with our legal advisor here: https://calendly.com/finex-and-co-legacy-advisory/tea-talk-with-legal-expert
大马长辈最怕的事：分完财产后没人要顾，该怎么办？
对很多年长者来说，年纪越大，最怕的不是生病，也不是孤单，而是把财产分完后，孩子不再理你。可惜，这样的事情在马来西亚真的时常发生。有些老人家把房子、钱财提早转给孩子，结果却被冷落、忽略，甚至赶出门。
要怎样避免这种情况发生？以下是几个实用又合法的方法，可以保护长辈的利益，也保障自己晚年的生活品质：
1. 不要太早把财产转出去，写遗嘱才是最稳妥的做法
很多老人家担心老了没人照顾，就提早把房子或存款转名给孩子，心想：“我给你东西，你应该会照顾我吧。”但现实往往不是这样。财产一转出去，就等于没了控制权，要拿回来就很难了。其实，写好遗嘱，把资产留到往生后才分，是更好的做法。
为什么这样比较好？
– 自己还有控制权：财产还在你名下，孩子就不敢不理你，多少还会顾忌一点。
– 费用差不多：生前转名也要请律师、处理文件，其实和通过遗嘱来继承差不了太多。
– 避免未来纠纷：万一转了名之后你后悔，法律上是没办法的改回去的。用遗嘱来分配资产，也比较公平清楚。
例子：
林先生今年 80 岁，把屋子提早转名给大儿子，结果儿子开始不闻不问，还把他推去住老人院。他后悔莫及，但法律上已经不是他的屋子了，没办法拿回来。如果他一开始就写遗嘱，至少还可以保留决定权。
2. 财产可以慢慢给，不需要一次过分完
除了写遗嘱，其实也可以选择分阶段或有条件地分财产。比如说通过“遗嘱信托”（Testamentary Trust）的方式，孩子几年后才可以拿到部分财产。这种方式让你还握有一点“谈判的筹码”，孩子才不会一下子拿完就跑人。
想了解更多，可以看看这篇文章：Why Do You Need to Set Up a Testamentary Trust for Your Minor Children?
3. 用保险信托（Insurance Trust）来保障自己的晚年
想要确保老了还有钱照顾自己，又怕孩子乱花？那可以考虑设立一个保险信托，是目前蛮多人采用的一种方式。
什么是保险信托？
简单来说，就是你把人寿保险的赔偿金交由信托人 (Trustee) 代为管理，设定好规则，让钱真正用在对的地方。
保险信托什么时候会启动？
i. 完全残障 (TPD) / 昏迷：赔偿金可以直接给你本人，用来请看护或付医药费。
ii. 患上重大疾病：同样会拨出钱来帮你治疗。
iii. 往生后：赔偿金根据信托里的安排分给受益人。
还可以设定：
– 指定照顾者 (caretaker)：你可以在信托里指定某人负责照顾你，或用信托的钱请专业护理。
– 防止财产被乱用：因为有信托公司管着，孩子拿不到整笔钱，只能在指定用途下使用。
想了解更多，可以参考这篇文章：《什么是保险信托？》
要聪明分配财产，才不会“人财两失”！
年纪大了，最怕的是“人财两失”——既给了孩子财产，也没得到照顾。所以要懂得用遗嘱、信托还有分阶段分配财产等工具，好好安排自己的晚年生活。
