Many people know the importance of writing a Will. One of the most important decisions you need to make when writing your Will is the appointment of your Executor. An Executor is the person or trust corporation you choose to carry out the terms of your Will. The Executor is responsible for the entire administration of an estate until the final distribution of the assets is made to the beneficiaries.
Generally, the Executor must handle all the deceased assets and settle all his debts and liabilities before distributing assets of the estate to the intended beneficiaries according to the Will.
If you appoint a person to act as your Executor, there may cause some hardship to your loved one. The appointed individual Executor in your Will may lack of the maturity, knowledge and experience in handling the administration of your estate. He may be incompetent or unfamiliar with his duties. Thus, he may seek for assistance from other competent professionals to assist him. This will definitely lead to extra costs. On the other hand, by appointing Trust Corporation such as Rockwills Trustee Berhad, you are assured of the professionalism and competence in the work done at a cheaper cost for the overall administration.
In addition, if your last surviving Executor decides not to act or becomes unable to act due to poor health, work or family commitment when you pass away, their refusal or resignation could cost your beneficiaries a lot of money and time because a new Administrator has to be appointed among the beneficiaries. The Administrator will have to apply for the Letters of Administration with Will annexed instead of the Grant of Probate. This will involve a longer process and cost your beneficiaries a lot of money and time.
Furthermore, if the sole or last surviving Executor and Trustee passes on with a Will before the estate administration process is completed or trust period is ended, then his Executor and Trustee (i.e. the Executor and Trustee of the sole or last surviving Executor and Trustee – chain of executorship) will assume the role. This is clearly stated under section 12 of the Probate and Administration Act 1959. Therefore, it could be a total stranger to administrate your estate. Do you want a stranger to handle your estate? Therefore, it is advisable that you should appoint Rockwills Trustee Berhad as a substitute Executor in your Will.
By section 43 of the Probate and Administration Act 1959 which provides that ‘the Court may its own discretion allow the Executors or Administrators a commission not exceeding five per centum on the value of the assets collected by them, but in the allowance or disallowance of the commission the Court shall be guided by its approval or otherwise of their conduct in the administration of the estate’, the individual Executors may charge up to 5% on the estate value as their commission with the consent of the High Court. In contrast, the fees charged by Trust Corporation (such as Rockwills Trustee Berhad) are fair and competitive, it is usually less than 2%.
The continuity in the estate’s administration may not be provided as the individual Executors may die, fall sick or become very busy. The services of the Executor may be required at any time upon the death of the Testator, and at times the responsibility of the Executor may also continue throughout a period of time especially where minor beneficiaries are involved and where there is a testamentary trust for the beneficiaries is held until the trust end. Therefore, it would be difficult to ensure that the appointed individual Executors will always be available to discharge their responsibilities. As a Trustee Corporation, Rockwills Trustee Berhad has perpetual existence with full time legal staff to ensure continuity in the administration process until the final distibution.
