By Peter Lee
Having ascertained the status of those properties that are either mortgaged to the bank or free from encumbrances held under the estate of Lee Senior [three are jointly owned with Mrs Patricia Lee (Lee Sr’s 1st wife) and another three solely owned], the Trust Company Representative (TCR) further asked Dave (Lawyer) whether there were any more properties jointly owned by Lee Sr with Connie (Lee Sr’s 2nd wife). In reply Dave said “Yes, there are two houses jointly owned by Lee Sr and Connie. One of the properties was mortgaged to a bank for an overdraft facility of RM500,000 while the other one was mortgaged to the bank for its purchasing loan.” TCR then asked, “Was there any discussion on whether Lee Sr’s first family would renounce their entitlement to the 50% of these two properties?” Dave replied “As far as I remember, there was no discussion on this.”
TCR further said “In that case, I have to ask them. However, before distribution takes place, we have to deal with the repayment of the outstanding Overdraft Facility. This funding would most likely be derived from the money in the estate. But as for the housing loan, the Mortgage Reducing/Loan Term Assurance on the loan itself would be able to repay the loan instalment in full on Lee Sr’s portion if he had such coverage. In the event he didn’t, then we have to utilise the money from the estate again. In the meantime, since we have not obtained the Letter of Administration (L.A.) which enables us to access the assets of the estate, then their loan repayment would need to be paid by their family members to prevent the properties from being auctioned. Once monies from the estate is made available, the beneficiaries will be refunded from the estate either in full or proportionate to the available funds/assets taking into account the other creditors of the estate.”
TCR enquired further whether there were any more properties involved and Dave replied with a no. With that, Dave continued to discuss the shares in the Sdn Bhd companies held by Lee Sr. Dave said “Lee Sr owns 70% of the shares in three companies which he has set up for his first family. It is now managed by the first family. However, there is another investment company in which he has a 50% stake. The other 50% is held by Connie. These are all the family shares revealed to me.”
TCR interrupted and asked “Are there any problems in this area with regards to distribution?”. Dave then said “For your information, Connie has agreed to sell her entitlement as well as her children’s entitlement to the 70% shares in three companies held by Lee Sr to his first family for a consideration of RM 5.4 million. There was also an agreement signed together with share transfer forms for this transaction. However, as you know, the transfer of shares in exchange for cash can only be executed after obtaining L.A.” TCR then asked “What about the Investment Company between Lee Sr and Connie. Would the first family be willing to renounce the 50% shares held by Lee Sr or sell it to Connie?” In reply, Dave said “I think we have left out this matter as we were so engrossed in dealing with the three companies.” TCR then said “Ok, I will check with the family.”
To be continued…
