Is Your Will Still Valid? Madam Lee Inheritance Case Study

Inheritance Case Scenario: The Dangers of the “Set and Forget” Mentality

Many individuals in Malaysia treat will writing as a one-time administrative task – a document to be signed once and stored away indefinitely. However, as your life progresses, your old will can quickly become obsolete. At CNB Amanah, we have witnessed how “set and forget” estate plans often result in family exclusions and legal deadlocks.

A professional will review is a critical step in legacy planning. It ensures that your document accounts for your current family structure and your most recent asset portfolio, preventing unnecessary stress for your loved ones during estate administration.

The Case of Madam Lee: A Legacy Left in Limbo

Case Example:
Madam Lee was a proactive mother who wrote her will shortly after her first child was born 15 years ago. In that document, she left her entire estate to her husband and appointed her own father as the executor of the estate. She felt secure knowing she had a plan in place.

Over the following 15 years, Madam Lee’s life changed dramatically. She had two more children who were never added to the will. She also expanded her wealth, acquiring several investment properties and a family business. Sadly, her father (the named executor) passed away three years before she did, but Madam Lee never made the time to update her documents.

When Madam Lee passed away unexpectedly, her “old will” caused massive administrative hurdles. Her two younger children were legally excluded from the primary asset distribution. Furthermore, because the named executor was deceased, her family had to undergo a complex and expensive court process to appoint a new administrator with will annexed. This led to over two years of probate delays, during which her assets remained frozen.

When Should You Review and Update Your Will in Malaysia?

Under inheritance law in Malaysia, certain milestones should trigger a review of your estate planning documents. We recommend consulting professional will writing services if you experience:

• Change in Marital Status: Marriage in Malaysia typically revokes a will unless it was specifically made in contemplation of that marriage. Divorce, however, does not automatically revoke a will, which could lead to an ex-spouse inheriting your assets.
• Arrival of New Heirs: The birth or adoption of children or grandchildren requires an update to ensure fair inheritance distribution for all family members.
• Death of a Key Representative: If your named executor, guardian, or a primary beneficiary passes away, your will may become partially or fully ineffective.
• Material Change in Wealth: Acquiring significant new assets or starting a business means your old schedule of assets no longer provides a clear roadmap for your heirs.

The Advantage of a Professional Corporate Executor

The Madam Lee case highlights the inherent risk of appointing individuals as executors. People may pass away, fall ill, or move away, leaving your estate without a leader. By appointing CNB Amanah as your professional corporate executor, you ensure continuity of care.

A corporate executor provides permanent, institutional expertise, ensuring that your wealth succession is handled efficiently and without the delays associated with the death or incapacity of an individual executor.

Beyond the Will: Flexible Legacy Protection

For growing families, a static will may not be enough. Incorporating trust services, such as a private trust, allows for greater flexibility. A trust can be structured to manage assets for minor children or provide for elderly parents immediately, bypassing the public and often lengthy probate process.

Frequently Asked Questions

Does a will expire in Malaysia?

No, a will does not expire. However, it can be revoked by marriage, a newer will, or physical destruction. An outdated will remains valid but may not cover your latest assets or children.

What happens if my executor dies before I do?

If you haven’t named a substitute or updated your will, the court must appoint an administrator. This is a longer, costlier process. You can avoid this by naming a corporate executor like CNB Amanah.

Can I just write an amendment to my old will?

Yes, this is known as a Codicil. However, for significant changes such as adding new children or changing executors, it is legally safer to draft a new professional will to avoid confusion.

Will my younger children automatically inherit if they aren’t in the will?

No. In Malaysia, if a valid will exists, the estate is distributed strictly to the named beneficiaries. Children born after the will’s creation are generally excluded unless the document is updated.

For further enquiries or personalised assistance, reach out to CNB Amanah via our official contact channels.