“My Will, My Story"
"我的遗嘱，我的故事“

Throughout a decade of Estate Planning experience, I do have many fulfilling client stories. Let me share with you the story of one Mr Lee.

Mr Lee was introduced to me by a client of mine. He and his business partner were in the chemical business. When I first met Mr Lee eight years ago, he was keeping a busy schedule and was always travelling abroad on business.

He and his wife – parents to a teenage son and teenage daughter – knew that planning for their estate is important. Even though, they did not consider it as something to do urgently, they did get down to having a Will and Trust done before disaster struck.

Three years ago, Mr. Lee was diagnosed with lung cancer and passed away subsequently.

In his Will, Mr Lee appointed Rockwills Trustee Berhad as the executor. That was good foresight on his part. He knew that his wife would not be emotionally strong and be capable of handling the execution of his Will had be appointed his spouse to be the executor. True enough Mrs. Lee went into depression after her husband’s death.

In addition to the right choice of executor, I also guided the couple on paying attention to resources optimization, resources liquidity, resources allocation and resources preservation in the estate planning process. In the end, the wishes of Mr Lee came true because his Will was well prepared and Rockwills Trustee as the right executor was appointed to ensure his instructions are carried out.

Resources optimization

As a businessman, most of Mr Lee’s financial resources was in the business. How can his family cash out these resources if they don’t have anyone in the family to step into Mr Lee’s shoes and continue running the business? How can his business partner find the cash to take over the shareholding of Mr Lee and pay his family? These and a host of other uncertainties will crop up if Mr Lee or his partner pass on without proper planning of business succession.

A Buy Sell Trust set up together with his business partner helped Mr. Lee’s family to get a fair value for his shares when he dies, which was what Mr Lee opted for in protecting the value of his business share, in his estate plan. It worked well and without hitches when Mr Lee passed away. The Trust facilitated the shareholding of his business to be acquired by his partner and the purchase consideration duly went to Mr Lee’s family.

Resources liquidity, distribution, proper allocation and preservation:

As an entrepreneur, Mr Lee not only re-invested into the business but also diversified his investment to include properties.

His liquid resources are just enough for family operation. I have advised him to re-allocate some of his resources from non-liquid to guarantee and liquid resources. And I helped him to set up a trust as a firewall to protect the bulk of his wealth against creditors. By doing so, it prevented him from dying insolvent; estate shrinkage; squandering by beneficiaries who are not good in financial management, prevent gold diggers into his family and left a good legacy to his children.