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Slides 2020 04 20 Wills and Administration of Estates
Slides 2020 04 20 Wills and Administration of Estates
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Wills and Administration of Estates
BY GAN CHONG CHIEH & PRISILLA CHONG 20 April 2020
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Talk Points
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Importance and benefits of having a will
● You can choose a guardian for your children and provide for them
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Formalities and contents of a will
Basic formalities of a will
● The maker of the will must be of sound mind with animus testandi
(intention to make a will) (Sec 3 of the Wills Act 1959)
● Must be 18 years old and above (Sec 4 of the Wills Act 1959)
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Contents of a will
● Appointment of Executor(s)
● Beneficiary(s)
● Date
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Appointment of executor(s)
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Appointment of executor(s)
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What can be disposed of by a will?
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What cannot be disposed of by a will?
● If there are nominations in the Employee Provident Fund (EPF) and
insurance policies, payouts from EPF and insurance policies will not
form part of the estate or to pay the testator’s debts.
➢ EPF - How Yew Hock (Executor of the Estate of Yee Sow Thoo,
deceased) v Lembaga Kumpulan Wang Simpanan Pekerja [1996]
2 MLJ 474 - Statutory nominations will prevail over will.
➢ Insurance - Section 130 of the Financial Services Act 2013 &
Schedule 10 of the Financial Services Act 2013
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Condition gift(s)
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Condition gift(s)
● Cannot be uncertain/vague
➢ Eg: “a small portion of is what is left” or “one of the sons” of Mr A.
● Cannot be illegal
➢ Eg: to commit a crime or any act prohibited by law.
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Testamentary trust(s)
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Testamentary trust(s)
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Residuary clause
● Catch-all provision
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Beneficiary(s)
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Mode of execution
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Addressing common misconceptions
Addressing common misconceptions
➢ A will only comes to effect upon the death of the testator
➢ You can amend your will by making a fresh will or by way of a codicil
➢ Everyone can make a will (except for infants - Sec 4 of the Wills Act
1959)
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Administration of estates
Grant of Probate vs Grant of Letters of
Administration
Applicable laws in Malaysia
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Grant of Probate vs Grant of Letters of
Administration
Death
Persons interested in
the estate to apply for
Executor Grant of Letters of
Administration
Administration Bond
Grant of Letters of
Administration
Distribution Order
(Immovable properties)
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Testacy
● An individual who passed away with a valid will
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Intestacy
● All persons interested in the estate (usually beneficiaries) can make an
application for Grant of Letters of Administration upon the death of a
person without a will.
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Intestacy
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Intestacy
● Persons entitled under Section 6 of the Distribution Act 1958:
➢ Spouse
➢ Children
➢ Parents
➢ Siblings
➢ Grandparents
➢ Uncles and Aunts
➢ Great grandparents
➢ Great grand uncles and great grand aunts
➢ Bona vacantia
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Intestacy
● Manner of distribution under Section 6 of the Distribution Act 1958
Whole Estate X X
1/2 1/2 X
X X Whole Estate
1/3 X 2/3
X 1/3 2/3
X Whole Estate X
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Remuneration
● Executor’s Commission
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Possible Complications
● Renunciation
➢ The executor may expressly renounce his/her rights to the
representation - Sec 8 Probate and Administration Act 1959
➢ Constructive renunciation - Sec 9 Probate and Administration
Act 1959
➢ The person renouncing shall be precluded from applying for
representation thereafter
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Possible Complications
● Caveat
➢ Caveat can be entered by any person to ensure that no grant
of representation is made.
➢ Caveat can be entered at the High Court Registry.
➢ Caveat is valid for 6 months.
➢ The procedure for caveat - Or 71 of the Rules of Court 2012
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Possible Complications
● Citation
➢ Citation to accept or refuse or to take a grant
➢ Citation is a notice issued when the executor(s) in a will delays
or declines to apply for grant of probate.
➢ A caveat must be entered before issuing a citation.
➢ Procedure on issuing of citation - Or 71 r 42 of the Rules of
Court 2012
➢ The High Court shall have power to summon any person
named as executor in any will to prove or renounce probate of
the will and do any such other things concerning any will - Sec
40 of the Probate and Administration Act 1959.
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Possible Challenges
● Lack of testamentary capacity
(not of sound mind, memory and understanding)
● Suspicious circumstances
● Undue influence
● Forgery/Fraud
● Removal of executor(s)
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Possible Challenges
● Lack of testamentary capacity - not of sound mind, memory and
understanding
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Possible Challenges
● Lack of testamentary capacity - not of sound mind, memory and
understanding
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Possible Challenges
● Suspicious circumstances
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Possible Challenges
● Undue influence
➢ The testator was coerced into executing the will in the form that
it had taken, or the will was not the voluntary act of the testator
(Carmel Mary Soosai v Josephine Lourdasamy Ratnavathy R.
Soosai & Ors [1987] CLJ (Rep) 498).
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Possible Challenges
● Forgery/Fraud
➢ Person(s) alleging forgery bears the burden of proving.
➢ The testator’s signature on the will does not bear the true and
genuine signature of the deceased and is a forgery.
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Possible Challenges
● Removal of executor(s)
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Possible Challenges
● Removal of executor(s)
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Possible Challenges
● Removal of executor(s)
➢ Examples of sufficient cause:-
– failure to render accounts or periodic accounts
– failure to administer the estate
– failure to call in the assets
– intermeddled with the assets
– active hostility towards the beneficiaries
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Your Will - Prepared By Trusted Lawyers
● https://mahwengkwai.com/your-will/
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Questions?
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Notice: This presentation does not constitute legal advice and its contents should
not be relied upon as such. The facts and circumstances of each and every case will
differ and therefore will require specific legal advice. Feel free to contact us for
legal consultation.
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● https://mahwengkwai.com/your-will/
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