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.
What are the duties of an Executor?
(a) Locate a Will;
(b) Make funeral arrangement;
(c) Apply by petition for Grant of Probate;
(d) Assemble, protect and insure all assets;
(e) Pay for the debts and liabilities;
(f) Pay income taxes;
(g) Prepare and complete detailed accounting; and
(h) Distribute assets of the estate according to the Will.
Importance rules for the Executor
1. Keep the beneficiaries informed throughout the estate administration process.
2. At all times, the Executor must act in the best interest of the beneficiaries as the Executor owes a fiduciary duty to them.
3. Section 74 Income Tax Act 1967:
(5) the Executor must not distribute the estate unless made provisions for full or reasonable tax payment.
(6) failure to comply with (5), the Executor will be liable to pay a penalty equal to the amount of tax payable.
Why appoint Rockwills Trustee Berhad as Sole or Substitute Executor in your Will?
If the appointed individual Executor in your Will decide not to act or become 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. Letter of Administration with Will annexed will have to be applied for instead of the Grant of Probate, and the Court will appoint a suitable person to administer the estate. This will involve a longer process and cost your beneficiaries a lot of money and time. The cost of appointing Rockwills Trustee Berhad as the Executor or substitute Executor is only one time fee of RM 120.00 and the administration fees only becomes effective upon the death of the Testator or when the appointed Executor is unable or unwilling to act or resigns.
If the individual Executor finds himself not suitable for the duties and decides that a competent Trust Corporation like Rockwills Trustee Berhad who has the economy of scale to save cost, he would not be able to hand over the administration work, unless Rockwills Trustee Berhad is appointed as a substitute Executor in the Will.This means your Will will be more flexible and durable if Rockwills Trustee Berhad is appointed as a substitute Executor.
No sureties required
If a new Administrator is appointed, the law requires the Administrator to provide two sureties who should have at least the same equivalent gross value of the estate. This is one of the major cause of most delays in administration of the deceased’s estates because it is very difficult to find sureties (guarantors) whereas appointing Rockwills Trustee Berhad does not require any sureties.
Professional and Competence
The misconception that appointed a Trust Corporation like Rockwills Trustee Berhad would increase the administration cost is wrong. Since the individual Executor may not have the expertise or time, he will engage other competent professionals to perform his function as an Executor. This means that the administration cost will be the same or even higher. In addition, the individual Executor still have the responsibility in law and is still liable for any legal action brought by third parties like the Inland Revenue Board and other creditors of the estate. By appointing Rockwills Trustee Berhad, you are assured of the professionalism and competence in the work done at a cheaper cost for the overall administration.
The services of the Executor may be required at any point in 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 it can be a situation where there is a delay in the legal process. Therefore, it would be difficult to ensure that the appointed individual Executor will still be around to discharge his 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 distribution.