Introduction
A staggering 80% of Malaysians lack valid wills, according to the Malaysian Institute of Estate Planners (MIEP). This means a significant portion of the population is leaving their loved ones to navigate complex legal issues and potentially unclaimed assets after their passing. With over RM90 billion worth of unclaimed assets reported nationwide, the importance of having a clear and up-to-date will cannot be overstated. While writing a will might seem like something for the distant future, it's a crucial step in ensuring your wishes are followed and your loved ones are taken care of after you're gone. But just like life, your will needs to adapt to changes. Here's why keeping your will updated is essential.
Why You Should Update Your Will
Imagine this: you write a will when you're young and single. Years later, you get married, have children, and accumulate more assets. Your old will might not reflect your current situation, potentially causing confusion and distress for your family. Here are some key life events that necessitate a will revision:
Marriage: In Malaysia, getting married automatically revokes your previous will. This means your will from before your marriage becomes invalid. You'll need a new will to ensure your spouse is included in your inheritance plan.
Divorce: If you get divorced, your former spouse is automatically removed as a beneficiary from your existing will. Review and update your will to reflect your current marital status and desired beneficiaries.
Birth of Children or Grandchildren: The arrival of children or grandchildren is a joyous occasion. You'll likely want to include them in your will. Consider:
Guardianship: If your children are minors, appoint guardians in your will to care for them in the event of your passing.
Backup Guardians: It's also wise to include backup guardians in case your primary choices are unable to take care of your children.
Death of a Beneficiary: Life is unpredictable. If a named beneficiary in your will predeceases you, your will needs to be updated. You'll need to designate a new beneficiary to receive the intended inheritance.
Acquisition of Significant Assets: As you progress in life, you might acquire significant assets like property or a business. Your existing will may not account for these. Updating your will ensures these assets are distributed according to your wishes.
What to Include in Your Updated Will
A well-drafted will clearly outlines your wishes and minimizes confusion during a difficult time. Here are some key elements to consider including in your updated will:
Beneficiaries: Who gets what? Be clear about who inherits your belongings. List each beneficiary by name and relationship to you. Clearly state the percentage or specific assets they will receive.
Guardianship: If you have minor children, appoint guardians in your will to care for them if you and your spouse are no longer alive. Choose responsible individuals who share your values and can provide a loving home for your children.
Executors: Choose someone trustworthy to handle your estate. This person, called the executor, will be responsible for tasks like paying off debts, distributing assets to beneficiaries, and finalizing taxes.
Specific Gifts: Do you have a prized possession you want a specific person to inherit? Perhaps a family heirloom or a cherished piece of jewelry. You can include these specific gifts in your will, ensuring they go to the intended recipient.
Charitable Donations: Consider including charitable organisations in your will. Specifying the amount or percentage of your estate you wish to donate allows you to support causes you care about even after you're gone.
Conclusion
Your will is a vital document that ensures your loved ones are taken care of after you're gone. Don't let an outdated will create unnecessary complications. Regularly review your will and update it whenever your life circumstances change. Consulting a lawyer specializing in wills and probate in Malaysia ensures your will is legally sound and reflects your current wishes. Remember, a little planning today can bring peace of mind tomorrow.
If you have any questions, please feel free to contact our Managing Partner, Eugene Yeong.
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