Ask and we will answer

Borneo Post with the expert help of Rockwills Trustee Bhd, the leading specialist in estate planning having pioneered wills and trust 24 years ago, is publishing a regular Q&A column on estate planning.

It will feature questions which readers have in mind but don’t know who to ask.

Question: I have nominated my sister in my life insurance policy but was told that my wife and children are the true beneficiaries. Is this true? If yes, how do I ensure she gets the money?

Rockwills Answer: Yes, it is true if you do not have a Will. Paragraph 6 of Schedule 10 in the Financial Services Act 2013 states that any person other than spouse, children and parent (if single) will only receive the money in the capacity of an executor and must pass the money back to the deceased’s estate.

Therefore, if you want your sister to receive this money, you can either:

a) Write a Will in which you name her as the beneficiary to this particular policy; or

b) Assign the policy directly to her; or

c) If you want to ensure the insurance proceeds are not squandered, set up an insurance trust with a trustee company like ours specifying how such proceeds are to be disbursed over time and under what conditions, and also name substitute beneficiaries in the event your sister predeceases you.

Question: I have written a Will and left all my possessions to my children, mentioning their names in the Will. I have also adopted a few children, who have now left the family. I have left their names out of the Will. Can these adopted children, who have my surname, contest the Will?

Rockwills Answer: In making a Will, you have the freedom to choose your beneficiaries, but there are certain categories of people who can apply under the Inheritance (Family Provision) Act 1971 for reasonable provision to be made for their maintenance if nothing, or an insufficient amount, is left to them under the Will. These people include: a) A wife or husband; b) A daughter who has not been married or who is, by reason of mental of physical disability, incapable of maintaining herself;

c) A son who is, by reason of mental of physical disability, incapable of maintaining himself.

d) An infant son (below the age of 21) If your adopted children fall under categories (b), (c) or (d), they have the right to apply to court to have your Will varied to make reasonable provision for them because the definition of a “son” or “daughter” under the Inheritance (Family Provision) Act 1971, includes legally adopted children. owever, whether they will succeed or not depends on the merits of the case.

This Q&A Column in published as a joint public service and educational initiative with Rockwills Trustee Bhd. Please email your questions related to Estate Planning to bizhive@theborneopost.com or Rockwills’ Training & Business Development Senior Manager Sam Chan (samchan@rockwills.com).