Category Archives: Rockwills

In The Name of My Father’s Estate (Episode 23)

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By Peter Lee

Midway through the family meeting in Dave’s office, both Mrs Patricia Lee (Lee Sr’s first wife) and Connie (Lee Sr’s 2nd wife) stepped out from the meeting room. Connie quickly called her lawyer, May, to write a letter for her to be sent to ZNA Bank, Singapore on the same day to freeze the joint bank accounts between Lee Sr and Mrs Patricia Lee in ZNA Bank, Singapore amounting  to S$3 million. Although Connie has only the birth certificates of her children to prove her relationship with Lee Sr.  her fear that Mrs Patricia Lee will withdraw  the entire sum prompted the move. While she was giving instructions to May, Mrs Patricia Lee  made a phone call to book a flight for the next day to Singapore with the intention to withdraw this amount.

After both of the ladies stepped back into the meeting room, Connie then said to John and Michele, “I have another appointment in 2 hours’ time. So, can we make it quick about our discussion on the family company shares?” John and Michelle agreed. After the rest of the family members left the meeting room, Michele said to Connie, “Since we (John, Michele and Connie) are the joint Administrators of my father’s estate, I hope we can work together to distribute the estate as soon as possible. I think my family won’t mind distributing the estate according to Intestacy law. Even mum with so much reluctance has indicated that she is willing to distribute the S$3 million in Singapore according to Intestacy law. On top of that, she has also suggested in our earlier meeting that our family can renounce your joint bank accounts with my father and your children as well, which are now frozen. With all this, I think you would have a sizeable cash amount.”

“So, I really hope you can renounce your rights to the 70 per cent shares which father owns in each of our family companies to avoid further complication. By the way, we have also mentioned in our earlier meeting that you can keep father’s shares in the investment companies which you have set up with him.”  In response, Connie said “You know, I don’t think there will be any complication holding shares in three of your family companies. After all, my children and I are not going to manage the Companies.” John, feeling agitated, quickly interrupted and asked, “What if we work out a figure and pay you an amount and in return you give back your entitlement and your children’s as well to our family?” Connie then asked “Well, it all depends on how much you are offering.”  John then said, “I have to ask my accountant to calculate the value first and only then can we discuss.” In response, Connie said, “You do that first and then I will consider. Ok! Is there anything else because I have to go now.”  John turned to Michele and said, “I guess we have to meet once again after we have calculated the value of father’s shares.”  Connie then quickly left in a hurry heading towards May’s office. May was ready with the letter to ZNA Bank, Singapore when Connie arrived. Once Connie signed the letter, she handed the birth certificates of her children to May and  instructed her to send the letter through courier and email. In addition, she also asked May to call the bank manager.

International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

 

In The Name of My Father’s Estate (Episode 22)

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Rockwills - wills and trusts - ipoh estate planningBy Peter Lee

Since Connie (Lee Sr’s  2nd wife) could not agree with the suggestion by Mrs Patricia Lee (Lee Sr’s first Wife) to renounce her claim to the joint bank accounts between Lee Sr. and Mrs Patricia Lee in ZNA Bank, Singapore which amounts to S$3 million, Mrs Patricia Lee further asked Connie “So, if you can’t agree to renouncing your entitlement to the joint bank accounts between myself and my husband, then can you renounce your rights to the entitlement of shares in my own family Companies and in return my family will renounce our rights to the  entitlement of shares in companies which you have set up with my husband? “No” was Connie’s response. Mrs Patricia Lee then said “Ok! What if we share the money in my joint bank accounts with ZNA Bank, Singapore according to Intestacy Law but you and your children renounce your rights to the shares in my family companies? Connie replied, “I think I still prefer all the assets to be distributed according to Intestacy Law.”

With frustration and anger, Mrs Patricia Lee turned to John and Michele (children of the first family) and said “Since she wants every damn thing, I think I am going to blow up if I continue talking to her. So, can you guys talk to her about this?” John then said, “Mum, let Michele and I talk to her privately later.” John turned to Connie and said “Connie! Are you okay with this? Connie replied “If you want this so called private meeting, I have no problem but whatever it is, my decision still stays. So! When can we have this meeting?” John replied, “To resolve it quickly, why not after this family meeting. Are you okay with this?” Connie confirms by nodding. Michele also agreed to it. He then asked, “Dave, is it okay to use this room?  In reply, Dave said “Yes”.

Connie then excused herself to the washroom and while walking to the washroom, she phoned her lawyer, May and said “May! This is Connie. I need you to do me a favour and it has to be today. I need you to write to ZNA Bank, Singapore to inform them of the demise of my husband and to freeze whatever joint accounts he has.” May then asked, “Is this joint account with you or someone else?”  Connie replied, “This account is jointly owned with his first wife. We are now having a family meeting and looks like she thinks that all the money in this account belongs to her. All I want is for me and my children to claim our entitlement of my husband’s 50 per cent in this account.” May then replied, “Ok! Can you forward your marriage certificate so that we can prove to the bank that you are the wife?” In response Connie said “I can’t because our marriage was not registered but I can provide you the birth certificates of my children which show that my husband is their father.” In reply, May said, “I think that’s not good enough.” Connie then said “If that’s the case, can you write for me and I will sign for it.” “Okay! I am not sure it will work but I will do it for you.” While Connie was talking to May, Mrs Patricia Lee was in Dave’s office room booking a flight to Singapore for the next day to withdraw the money in the joint bank account.

To be continued…

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. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

In The Name of My Father’s Estate (Episode 21)

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Rockwills - wills and trusts - ipoh estate planningBy Peter Lee

As all the beneficiaries of Lee Sr’s estate agreed to proceed with the application for the Letter Of Administration (L.A), Dave (Lawyer) said, “While I am applying for the L.A., I would advise the Administrators, namely: John, Michele (children of the first family) and Connie (Lee Sr’s 2nd wife)  discuss issues in relation to the money in the bank accounts especially those that are under the joint names of Lee Sr and Mrs Patricia Lee (Lee Sr’s first Wife) in which Mrs Patricia Lee intends to keep. If the rest of the family beneficiaries agree to give it to her, then all of you must sign a renunciation letter to renounce your rights to the entitlement. Further to this, I hope the Administrators could settle on the distribution of shares in the family Companies held by Lee Sr together with both sides of the family.   This is to say that whether the distribution for all the shares in all the companies will be based on the Intestacy Law. Otherwise, the other option would be the first family taking control of shares in the companies which they are managing and renouncing their rights to the shares in Companies that Lee Sr set up with Connie. In return, Connie and her three children will renounce their rights to all their entitlement in shares held by Lee Sr together with the first family and keep those shares in Companies which Lee Sr set up with her.”

John asked his own family members, namely: Mrs Patricia Lee, Nick, Steven, Michele, Nancy and Sandy, whether they are agreeable to let their mum have the entire amount of money held by their father jointly with her. He highlighted to them that the joint bank account which is now frozen is in ZNA bank, Singapore with an amount of roughly S$3 Million. He further explained that this amount could only be withdrawn once L.A. is obtained from Singapore. Every beneficiary from the first family consented to giving their mum by nodding. Then John asked Connie “What about you?” Connie replied “I think I would prefer to take my entitlement under the intestacy law.” In response to Connie, Mrs Patricia Lee said, “Can’t you let go of this for God’s sake?” Connie replied, “Look here, I have three minor children to take care of whereas your children are adults and financially independent.”

Mrs Patricia Lee then asked “So, what about the money in the joint bank accounts with our beloved husband which we have withdrawn?” “I guess you can leave those out” replied Connie. She further said “Let me remind you that I have two joint bank accounts in Malaysia which are frozen, one of which is in CDS Bank, Jalan Bunga, K.L. with an amount of RM500,000 and the other one is in Bagus Bank, Jalan Mewah, K.L. with an amount of RM800,000. My husband also has three other joint bank accounts with each of my three minor children. The amount in each of the account is roughly RM200,000. These accounts are all in Bagus Bank. So, you can see that these are subject to Intestacy Law in which all of your members are entitled to.”  In response, Mrs Patricia Lee said “Ok, why not my children and I renounced our rights of entitlement to the money in these bank accounts and you on the other hand renounce your rights of entitlement to the money in Singapore.” Connie replied, “Sorry! I can’t do this because of my children’s future.”

To be continued…

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. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

In The Name of My Father’s Estate (Episode 20)

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Rockwills - wills and trusts - ipoh estate planningBy Peter Lee

Since all the beneficiaries of Lee Sr’s estate understood the procedure for application of the Letter of Administration (L.A.) after Dave (Lawyer) explained to them, all of them proceeded to sign the relevant documents given to them by Dave. After the signing was completed, Dave then told the beneficiaries that he would need a down payment of RM5000 for the time being to apply for the L.A. in Malaysia. He further informed the beneficiaries that he would ascertained the cost for the application of L.A. in overseas countries like Singapore, Australia and U.K. In addition, he would also ask for the cost of appointing the lawyers or Trustee Company over there to represent the three Administrators in Malaysia, namely: John, Michele and Connie to administer the overseas assets since three of them are unable to travel to these countries. John then asked, “Would there be any subsequent legal fees for these applications?” In reply, Dave said “Yes, because there will be additional charges for transferring of assets especially properties and maybe further legal work for this application.”

Michele then turned to all the beneficiaries in the meeting and said, “Can I propose that eleven of us as beneficiaries share the cost for this Administration fees?” Everyone looked at each other for a minute and then Connie asked, “Can this payment be made from the estate?” Dave replied “In this case, since all the money in Lee Sr’s bank accounts is frozen, the payment for estate administration charges would normally have to come from the family first. Once the Administrators collect the estate money after L.A. is obtained, then reimbursement will be made to all payments made by family members on behalf of the estate.” Michele then asked again “So, are there any objections to my suggestion on the sharing because if there are none, then I suggest that we quickly pay Dave to enable him to proceed.”  As all the beneficiaries present nodded giving their consent, Mrs Patricia Lee then said, “In our earlier meetings, I had mentioned that I intend to keep all the money and properties that are jointly owned by me and my husband. She turned to Dave and asked “So, did you and the Administrators discuss this? Dave then replied, “This was discussed and I must highlight again that your husband’s share will be subject to the intestacy law in the Distribution Act 1958 unless the other beneficiaries renounced their claims to it. So, I suggest that all beneficiaries discuss with each other to decide on this matter while I apply for the L.A.” John intervened and said “Mum, I think we also have to discuss about our shares held by father in our own family businesses and those companies with Connie.” Mrs Patricia Lee asked, “What are we going to talk about on father’s shares?” John then said, “Well, we have in our earlier discussion between me, Dave, Michele and Connie suggested that Connie renounce her entitlement to father’s shares in our own family businesses and in return our side of the family will renounce our claims to the shares held by father in those companies set up with Connie. Now, we have not come to any consensus yet on this matter.” Mrs Patricia Lee then turned to Connie and asked “Well, have you decided this yet?” “No” was Connie’s reply. Mrs Patricia Lee further said to John and Michele, “I think you guys better sort out this matter with her and come back to me and the family.”

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. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

In The Name of My Father’s Estate (Episode 19)

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Rockwills - wills and trusts - ipoh estate planningBy Peter Lee

One week after the last meeting, all the beneficiaries, namely: Mrs Patricia Lee (Lee Sr’s first Wife) and her children, John Lee, Nick Lee, Steven Lee, Michele Lee, Nancy Lee and Sandy Lee together with Connie (Lee Sr’s second wife) and her minor children Steve, Jimmy and Jennifer gather at Dave’s (Lawyer) office to sign the relevant documents to kick start the application for the Letter of Administration (LA).

As everyone settled down in the meeting room, Dave said, “Good afternoon and thank you for coming. Today’s signing of documents will involve all beneficiaries entitled to the estate to sign the letter of consent to appoint the Administrators, namely: John, Michele and Connie. Those who are not appointed as Administrators will have to sign a letter of renunciation renouncing their rights to be the Administrators of the estate. As for Connie, you have to sign on behalf of your three children as they are still below 18 years old. Then, the Administrators appointed must sign the affidavits for the application of LA. The other matter is that we have to submit the names of Guarantors for the estate, namely: Mrs Patricia Lee, John and Connie as agreed in our earlier meeting.”

“Now, are there any questions before signing?” Mrs Patricia Lee asked, “Dave, how long will this application take and when can we receive our entitlement?” In reply Dave said, “I am not sure about this because it really depends on how fast we can submit the LA to the High Court and this submission must also be accompanied by all the lists of assets which the Administrators have to forward to me. The other thing is that, as discussed in my earlier meeting with John, Michele and Connie, I also need the Death Certificate of Lee Sr’s parents. This is because they are entitled to a quarter (¼) of his estate if they were alive. So, to eliminate their entitlement I have to submit their death certificates to the High Court as proof.”

John then said, “Dave, I have asked my father’s brothers and none of them have my grandparents’ death certificates. I think you have to proceed applying for the presumption of death certificate as discussed in our last meeting. Mrs Patricia Lee then said, “Looking at the way things are going, I wonder whether I will be dead before I receive the assets from the estate?” Dave continued and said, “Okay, if there are no more questions or objections to the signing, we shall proceed with the signing?” As there were no objections, everyone signed on the documents required. Nick then asked Dave, “Can you submit the LA to the High Court even though the list of assets provided is not complete so that the application for LA can move first and subsequently any outstanding documents can be submitted later?” In response, Dave said, “By right, this kind of submission requires a complete list of items which I have mentioned but under your family’s circumstances, I will have to seek permission from the High Court whether I could do this.” Mrs Patricia Lee said, “Dave, please do proceed and try Nick’s suggestion. To this Dave said, “Okay, I will try with this suggestion.” Then Dave further said, “As you are all aware there are also overseas assets involved in this estate. Therefore, we need a separate application of LA from these respective countries to collect the assets. So, are the Administrators willing to travel to these countries to do this job?” All the three Administrators declined and asked Dave to appoint a lawyer or a Trustee Company to act on their behalf.

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. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

In The Name Of My Father’s Estate (Episode 18)

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Rockwills - wills and trusts - ipoh estate planningBy Peter Lee

As Dave (Lawyer) had completed the discussion on gathering of Lee Sr’s estate with the Administrators namely, John, Michele (children of the first family) and Connie (2nd wife of Lee Sr), he told the Administrators to inform all the beneficiaries to be ready in a week’s time to sign all documents with regard to the filing of the Letter of Administration (L.A.). He further said “We will start this application in Malaysia first. As for overseas assets, it is best to apply separate L.A.s in those countries. So, please confirm with me in the next meeting whether all three of you will be willing to travel to these countries to get the job done. Otherwise, we will most likely have to appoint legal firms or trustee companies in these countries to act as the administrators on your behalf which requires the consent of all the beneficiaries.”

Michele asked, “Dave, could you refresh our memories on the documents which all the beneficiaries have to sign?” Dave replied, “It would be the consent letter to the appointment of the Administrators to be signed by all beneficiaries. Then, those beneficiaries who are not appointed as Administrators must sign the renunciation letter giving up their rights to this appointment. Subsequently, an affidavit must be signed by all the Administrators.” Connie then asked, “Can all my three minor children sign these documents?” In reply Dave said, “Only parents or guardians can sign for their minor children. As such, you will have to sign on their behalf.” Dave then added, “Please also bring along the death certificate of Lee Sr and his parents as well.” All the Administrators looked surprised and John said, “Dave, to give you the death certificate of my father is not a problem but it would be a problem producing my grandparents’ death certificates as they died so long ago. By the way, I can’t understand why the application for L.A. requires my grandparents’ death certificates since the distribution of my father’s estate is split into one third (⅓) for his spouse and two thirds (⅔) for the children according to the Distribution Act.”

In response, Dave said, “John, you are right on this but according to the Distribution Act, if your grandparents were still alive then they would be entitled to one quarter (¼) of your father’s estate whereas the other quarter (¼) will go to your father’s spouses and half (½) to his children. Therefore, in order to eliminate that one quarter (¼) entitlement to your grandparents because they are no longer around, you have to prove by way of their death certificates. I suggest that you can try extracting a copy from the national registration department or give me the authority as your lawyer to do so.” John then said to Dave, “I think it’s best you do the extraction to save us all the hassle. Then he turned to Michele and Connie asking them for their opinion in which both the ladies also consented to by nodding. John further probed “What is the next option if we still can’t produce the death certificates of my grandparents?” Dave replied “Well, we will then have to see whether the High Court allows our application for L.A. without your grandparents’ death certificates. I presumed we must at that point of time prove to them that we have exhausted all our avenues in search of these death certificates. Otherwise, the last resort would be applying for a presumption of death certificate from the High Court.

To be continued…

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. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

 

In The Name Of My Father’s Estate (Episode 17)

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After discussing with Dave (Lawyer) about the properties especially those that are mortgaged to the bank in Lee Sr’s estate, the Administrators of the estate namely, John, Michele (children of Lee Sr.)  and Connie (2nd wife of Lee Sr.) will now have to discuss and figure out where to source for funding for the on-going instalment payment. This is because they cannot utilize the money from the estate as the Letter of Administration (L.A.) had not yet been obtained. In the meantime, Dave moved on to the shareholdings of Lee Sr. in all of his private limited companies. John revealed that his father only had a 70 per cent stake in each of the three private limited companies he set up years ago. “These Companies are in housing development and have been managed by me and my other siblings all this while. I am sure you know about it?” he said while looking at Connie to which she responded by smiling.  Dave then asked, “What is the value of these shareholdings?” John responded and said, “I think it’s worth RM20 million as per the latest audited accounts. But, let me check again and confirm the value to you later.” Dave turned to Connie and asked, “Are there any shares of this type held by Lee Sr. that you are aware of?” Connie replied, “Yes! I only have an investment company which my husband and I set up. His shareholding in this company is 50 per cent and I have to check the value of his shareholding with my accountant.”

Dave then added, “Ok! Can I confirm with all of you that these are the only shares which he owns in the private limited companies?” Everyone nodded and said yes. John then said to Connie, “Even though all of us have to follow the distribution act, would you consider the idea of my side of the family keeping my father’s shares in the companies we’ve been managing and in return whatever shares held by him in your investment company will be given back to you.” Connie then replied, “Let me think about it and come back to you.” Dave intervened and said, “I suggest that it’s best we start off with the process of applying for the L.A. first and once L.A. is obtained then all of you can discuss and negotiate on this.” He further asked, “are there any more assets like the cars, safe deposit box, club membership, etc., which is under Lee Sr’s name?” Michele said, “As far as I know, there are only two cars under his name. So, how are we going to distribute it to so many family members according to the distribution act?”. Before answering Michele’s question, Dave asked Connie whether she knew of any other car which is in Lee Sr’s name. In reply, Connie said, “I only know of one car under my husband’s name.” Then Dave said, “Can you all please give me the registration cards of all these cars. Michele, the answer to your question is that if everyone wants to follow the distribution act, then I will suggest that these cars must be sold subject to consent of all the beneficiaries. In this way, it is much easier to distribute the proceeds from the sale.”

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. He can be reached at: 012‑5078825/05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

In The Name Of My Father’s Estate (Episode 16)

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Rockwills - wills and trusts - ipoh estate planningBy Peter Lee

“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. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

In The Name Of My Father’s Estate (Episode 15)

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By Peter Lee

With the bank information disclosed by John and Michele (children of Lee Sr) and Connie (Lee Sr’s 2nd wife), Dave pointed out to them that since overseas bank accounts were involved, it is advisable to apply for a separate Letter Of Administration (L.A.) in these overseas countries like Singapore, Australia and U.K. This will speed up the process of distribution. He added, “The application for L.A. for assets in Malaysia and those overseas can be done simultaneously. Therefore, as for overseas application of L.A., I have to engage legal firms in each of the respective countries mentioned to deal with this matter.” John then asked, “Is this going to be costly and how long will it take?” Dave replied, “I am not sure about the cost and duration until I check with the lawyers in these countries. However, what I know is that your father’s estate may have to pay Inheritance Tax in U.K. and if you are late in filing the Inheritance tax forms then there is a penalty imposed.” Michelle asked, “How much is the Inheritance Tax rates and the time frame for filing these forms?” In reply, Dave said “If I am not mistaken, the Inheritance Tax rate is 40 per cent of the value of your father’s estate above £325,000 and the time frame for filing to avoid the penalty is within one year after death.” Three of the Administrators at that moment shook their heads in disbelief at the hefty Inheritance Tax.

Then, Connie asked, “Will this be applicable in Malaysia, Singapore and Australia?” Dave replied, “As far as I know, there is no Inheritance Tax in Malaysia, Singapore and Australia. Another lucky thing is that estate duty in these three countries have been abolished. However, as far as Lee Sr’s personal income tax is concerned, three of you as Administrators will have to ensure that if there is any tax outstanding, it must be settled with the tax department before any distribution of the estate is carried out. We can discuss further on this later.”

Dave then said, “Okay, let’s talk about the investments registered under Lee Sr. either solely or jointly in local and overseas markets.” John said, “I have here statements on all the unit trust investments jointly owned with my father, three of which are with my mother (Mrs Patricia Lee) and the rest are with each of my five siblings including myself (that is,  Michelle, Nick, Steven, Sandy and Nancy). As for the shares in the share market, there are three CDS statements showing the local investments and here are the investment statements for those shares invested in Singapore and the U.K.” Dave then turned to Connie and asked, “Could you give me the investment details from your side?” Connie replied, “I have only two unit trust investment statements, two CDS statements for shares  locally and a statement showing some share investments in the Singapore stock market all of which are under his name solely.”

Michelle asked Dave, “Do we need to be present in the overseas countries mentioned to apply for the L.A. and deal with the money and investments there?” Dave responded, “If it is inconvenient for all three of you to travel for this, then we will most likely have to appoint legal firms or Trustee Companies in these countries to act as the estate administrators. This is subject to all the beneficiaries’ consents.”

To be continued…

 

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. He can be reached at: 012‑5078825/ 05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my. His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores.

In The Name Of My Father’s Estate (Episode 14)

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Rockwills - wills and trusts - ipoh estate planningBy Peter Lee

With the disclosure of the bank account under the sole name of Lee Sr, Dave then moved on to the joint bank accounts with different family members. He turned to John and Michele (children of Lee Sr who are also the co-Administrators) for this information.

Michele then asked Dave, “Can we just leave aside those bank accounts that are jointly owned with my family members which have not been frozen?” Dave said, “By right, legally you have to disclose all.”

Then, Michele turned to Connie (Lee Sr’s 2nd wife) and asked “Are you okay with my request or follow Dave’s opinion?” Connie paused for a moment and replied, “I think I want to follow Dave’s legal advice.”

Michele response to Connie was, “Let’s drop the legal crap and be practical to make our distribution easier, if you can agree with my idea?” Connie replied, “That’s easy for you to say when the bulk of your old man’s money, who happens to be my husband, is in your family’s hand.”

Michele retorted, “I guess there is nothing much I can do since my father married a gold digger”.

Connie immediately stood up pointing her finger at Michele and shouted, “You better watch your language or I will kick you.” Michele also stood up and said. “Let me see you do it right here and right now”.

Dave and John quickly pulled both women away from each other. Dave raised his voice and said “Ok! You ladies have to really cool it if we want to resolve the distribution quickly. We have a long way to go and it’s only the beginning now. So! Is everyone cool now?”

Connie then said to Dave, “You better ask her,” pointing to Michele, “to be careful with her words.” “Michele then responded and said “You too”. John interrupted and said, “Can both of you just stop for heaven’s sake and let’s move on with it as we have still a lot to discuss.” The room was silent for a moment waiting for both the women to cool down.

Then Dave said, “Since there is an issue of revealing all the joint bank accounts, I propose that we work on those joint bank accounts that are frozen, because if we can’t agree on this, then I think it will be difficult to move ahead”.

John response was, “Ok, let’s do it!” Dave then asked, “Are you okay with it Connie?” Connie replied, “I don’t think I have a choice, right?” John continued and said, “I have only a joint bank account with my father and mother in ZNA bank in Singapore which has roughly S$3 million. This account is frozen”.

Connie’s face suddenly glowed and was seen smiling while Michele was disgusted with her expression. “Ok! Connie, can you give me yours?” asked Dave. Connie replied, “I have two joint bank accounts with my husband of which one is in CDS Bank, Jalan Bunga, K.L. with an amount of RM500,000, and the other one in Bagus Bank, Jalan Mewah, K.L. with an amount of RM800,000 . My husband also has three other joint bank accounts with each of my three minor children. The amount in each of the account is roughly RM200,000. These accounts are all in Bagus Bank.”

To be continued…

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. He can be reached at: 012‑5078825/05‑2554853 or excelsecms@gmail.com. Website: http://www.wills-trust.com.my.

His Book “To Delay is Human but to Will is Divine” (96 pages, RM28) is available at his office: 108 (2nd Floor), Jalan Raja Ekram, 30450 Ipoh; Rashi Mini Market (019-510 6284), 37 Jalan Perajurit, Ipoh Garden East; Ipoh Echo and at all major bookstores in March 2013.