“Since we have discussed about all of Lee Sr’s bank accounts and investments locally and overseas, I would like to move on and talk about the properties solely or jointly owned by him,” said Dave. Then Dave continued by asking three of the administrators namely John Lee, Michele Lee and Connie to furnish the list of the properties and their values. John Lee (eldest son of Lee Sr) said, “I have with me here three of his properties which are jointly owned with my mother. Each of the properties has an estimated market value of RM1.5 million. These properties are free from encumbrances. However, there are another three properties which I know are solely owned by him and these properties have been mortgaged to Pan Bank, K.L. some years ago for his personal borrowings. These properties are worth roughly RM1 million each currently. Then, there is another property which my father jointly owned with my brother, Steven which is not mortgaged to any bank. This one is worth RM500,000.” Upon hearing this, Connie’s (Lee Sr’s 2nd wife) expression could be read as a “Wow”.
Dave then asked, “John, do you know how much your father is owing to the bank for his personal borrowings?” John replied, “I have some bank statements that show the amount owing to the banks being around RM1.5 million. John further said, “Looks like we have to settle this loan before we can discharge these properties for distribution. Now, the question is who is going to pay for this?” In reply, Dave said, “This will be paid by the money in the estate. That’s why we have to sort out the application for the Letter of Administration (L.A) fast so that all of you as Administrators can collect the assets in the estate to settle debts. In the meantime, someone from the family will still have to settle these monthly installments until L.A. is obtained. Whoever pays will be reimbursed by the estate’s money.”
“So I suggest, all of you check whether there are any Insurance or EPF monies nominating any of your family members that can be used to provide immediate funding for these loan installments or by using any of your own funds. This is to give some of confidence to the bank that your family can still continue with repayment.” At that moment, all the Administrators looked at one another and wondering who it should be? Dave then turned to Connie and asked, “Can you give me the same information on the properties from your side.” Connie’s reply was “I have two houses jointly with my husband. One of the houses is mortgaged to CDS bank for an Overdraft facility of RM500,000. The other house is mortgaged to the bank for the purpose of purchasing this house. The value of these houses is roughly RM1 million each.” Dave added, “Connie, as I’ve mentioned earlier, the repayment of the installments for the Overdraft facility for the time being must continue with own funding until L.A, is obtained. As for the other house, I am sure that you and your husband would have had an insurance coverage when taking this loan.” “I think so” was Connie’s reply. Dave then said, “Please make sure this is the case because this type of insurance will repay the entire portion of your husband’s loan.”
Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills &Trust services for Muslims. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28, Hard copy) is available at Rashi Mini Market (019-510 6284), No. 37, Jalan Perajurit, Ipoh Garden East or at Ipoh Echo. Chinese and English version of his book is also available at his office: No. 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh, Perak. He can be reached at:
- 012 507 8825 or 05 255 4853
- Email: firstname.lastname@example.org.
- Website: http://www.peterleewills.com/
- Facebook page: https://www.facebook.com/peterleeconsultancy/