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?
Cost Saving
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.
Flexibility
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.
Perpetual existence
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