Understanding the Impact on Your Investments
Imagine Alex, an experienced investor from Malaysia, who has amassed a diversified portfolio in both Malaysia and Singapore. If Alex were to pass away, what would happen to his investments and the dividends they generate?
Without a Will
If Alex has not prepared a Will, his assets, including his stock and bank accounts, and properties will be frozen. His beneficiaries will need to go through a legal process to access and manage these assets. Here’s how it works:
a. Obtaining a Letter of Administration (LA): Alex’s heirs will need to apply for an LA to manage his estate. If Alex leaves behind a spouse and two children, they must designate one or more administrators to handle the estate. The application for the LA can be submitted at the High Courts, a District Land Office, or Amanah Raya, based on the estate’s value.
b. Duties of the Administrator: Once granted, the LA allows the administrator to gather Alex’s assets, pay any outstanding debts and taxes, and distribute the remaining estate as per the Distribution Act 1958. According to this law, the distribution is as follows: one-third to Alex’s spouse and two-thirds to his children.
c. Time Frame: The entire process can take anywhere from 2 to 5 years
Without a will, managing and distributing Alex’s estate becomes more complex, costly, and time-consuming, involving significant paperwork and coordination among family members and legal professionals.
Having a Will
Creating a Will can streamline the process significantly. Here’s how having a well-crafted will benefits his estate:
a. Appointing an Executor: By naming an executor in his Will, Alex clarifies who will be responsible for managing his estate, reducing uncertainty.
b. Detailed Instructions: The Will allows him to specify how his assets should be handled. For instance:
Liquidation and Distribution: Alex can direct the sale of his stocks and outline how the proceeds should be divided (e.g., all to his spouse, or split between his spouse and children).
Testamentary Trust: If he prefers to keep certain properties (e.g.,5 years) for his children, he can establish a testamentary trust to manage these properties according to his wishes.
c. Faster Resolution: With a Will, the estate distribution process can be completed in 1 to 2 years, compared to the 2 to 5 years without one.
Handling Foreign Assets
If Alex investments include assets in both Malaysia and Singapore, such as 100,000 UOB shares, additional considerations are necessary:
a. Assets Held by Malaysian Brokers: If the shares are with a Malaysian broker, his shares will be administered in accordance with his Malaysia Will.
b. Assets with Singaporean Brokers: For shares held by a Singaporean broker, the process becomes more intricate:
Grant of Probate (GP): If Alex has a Will in Malaysia but not in Singapore, the executor must first obtain a GP from the Malaysian High Court to manage the Malaysian assets. Meanwhile, Singaporean assets will be on hold.
Resealing the Will: After settling the Malaysian estate, the Will must be sent to Singapore for resealing to obtain a Singaporean GP, which can be costly.
c. Having Wills in Both Countries: If Alex has Wills in both Malaysia and Singapore, the distribution process can occur concurrently, which is more efficient and cost-effective, especially for substantial holdings.
Final Thoughts
For investors like Alex, having a Will in Malaysia is crucial. If you also have investments in Singapore, a separate Will for those assets is advisable. Similarly, if you are a Singaporean with significant investments in Malaysia, consider preparing a Malaysian Will. Proper estate planning ensures that your investments are managed and distributed according to your preferences, regardless of their location.
You may make an appointment with our legal advisor here:
https://calendly.com/finex-and-co-legacy-advisory/tea-talk-with-legal-expert
你的投资在你去世后会如何被处理？
假设我们有一个经验丰富的投资者 Alex，他在马来西亚和新加坡拥有多样化的投资组合。今天，如果Alex去世，他的资产分配得取决于他是否有写遗嘱。
没有遗嘱的情况
如果Alex没有立遗嘱，他的资产，包括股票，银行账户和房产将会被冻结。他的继承人需要通过法律程序来管理这些资产。具体步骤如下：
a. 申请管理授权书（LA）： Alex的继承人需要申请管理遗产授权书（LA）来管理他的遗产。如果Alex留下了配偶和两个子女，他们需要指定一个或多个管理员来处理遗产。根据遗产的价值，可以在高等法院、土地局或Amanah Raya申请LA。
b. 管理员的职责：获得LA后，管理员可以收集Alex的资产，偿还任何未付的债务和税款，然后根据1958年《分配法》分配遗产。根据该法律，遗产的分配如下：配偶获得三分之一，子女获得三分之二。
c. 时间框架： 整个过程可能需要2到5年。
没有遗嘱的话，管理和分配Alex的遗产会变得更加复杂、昂贵和耗时，需要大量的文书工作和家庭成员与法律专业人士的协调。
有遗嘱的情况
立遗嘱可以显著简化这个过程。拥有一个详细的遗嘱对Alex的遗产有以下好处：
a. 指定执行人： 在遗嘱中指定执行人可以明确谁负责管理遗产，减少不确定性。
b. 详细指示： 遗嘱允许Alex指定如何处理他的资产。例如：
出售和分配：Alex可以指示出售他的股票和房产并说明收益如何分配（例如，全给配偶，或者在配偶和子女之间分配）。
遗嘱信托：如果Alex希望在他去世后的五年内保留房产给他的子女，他可以在遗嘱中设立遗嘱信托，按照他的愿望管理这些资产。
c. 更快的解决： 有了遗嘱，遗产分配过程可以在1到2年内完成，而没有遗嘱则需要2到5年。
处理国外资产
如果Alex的投资包括马来西亚和新加坡的资产，例如100,000股UOB股票，还需要额外考虑：
a. 在马来西亚券商持有的资产： 如果股票在马来西亚的券商处，Alex的马来西亚遗嘱就足够了。
b. 在新加坡券商持有的资产： 对于在新加坡券商处持有的股票，过程会更复杂：
遗嘱认证（GP）： 如果Alex在马来西亚有遗嘱但在新加坡没有，执行人需要先从马来西亚高等法院获得遗嘱认证（GP），以管理马来西亚的资产。与此同时，新加坡的资产将被冻结。
遗嘱重认证： 处理完马来西亚遗产后，遗嘱需要送往新加坡进行重认证，以获得新加坡的GP，这可能会产生费用。
c. 在两个国家的遗嘱： 如果Alex在马来西亚和新加坡都有遗嘱，遗产分配过程可以同时进行，这样更高效、成本更低，特别是对于大额资产。
最后的建议
对于像Alex这样的投资者来说，在马来西亚立遗嘱是非常重要的。如果你在新加坡也有投资，最好为这些资产准备一份新加坡的遗嘱。同样，如果你是新加坡人，在马来西亚有大量投资，也应该考虑准备一份马来西亚的遗嘱。适当的遗产规划可以确保你的投资按照你的意愿进行管理和分配，无论它们在哪里。
