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 26 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 1: Dear Rockwills, I have a few condominium properties and I am thinking of giving them to my three sons. As they are newly developed, the developers have yet to obtain the strata title. Will they be able to get my properties if the strata title is still not issued at that time?

Rockwills answer: The strata title of a property must be issued in order for the property to be inherited by the beneficiary. Without the strata title, your appointed Executor would not be able to transfer the properties to the beneficiary.

In many instances, the process involved in obtaining the Strata Title can be frustrating because the matters are not within the control of the executor but the developer of the property. The executor needs to have a good grasp of the situation as to why the strata title was not being issued then tackle the issues with the cooperation of the developer or the assistance of the authorities or the Tribunal For Homebuyer Claims (TTPR).

In conclusion, while you can still mention your properties in your Will although the strata title has yet to be issued, you should consider carefully and appoint a person who has extensive legal knowledge and experience in housing title matters as your executor. Otherwise, do consider a trust company that specialises in estate administration.

Question 2: Dear Rockwills, I am thinking about writing a Will lately but I have only 1 house which I can give to my 4 children. But I think my son would be happier if he received cash from me instead of a share of the house however I am not very cash rich. Will he be able to sell his share in the house in case he needs money?

Rockwills answer: We have seen many families in dispute due to difference in opinion regarding the assets that they share. If you give your house to all your children to share, your son will need to convince his siblings to reach a consensus to sell the house or buy over his share in the house.

Otherwise, there is nothing much your son can do with his share of the property. Perhaps you should consider whether your children actually need your house or not. If they are living by themselves at their own properties, it would be better to instruct your executor to sell off the house, then divide the proceeds of the sale among your children.

This could prevent disputes when you are no longer around. We recommend that you speak to an experienced estate planner to explore more options. Estate planners do more than just plan a Will, they also can help you plan such as how to create an emergency fund to ensure the family is not financially burdened after the person passes away.

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 Assistant General Manager Sam Chan (samchan@rockwills.com).