Nov 03 2011
What is letter of administration
What is letter of administration Letter of administration is referring to the letter grant from court to administrate your loved ones (upon demise / died) hard earned money and assets. It’s complicated process as when someone died without a will writing, his/her assets will be distribute according to Distribution Act, Malaysia, table below shown that how the distribution chart look like. It’s seem to be OK from surface, as all hard earned money and assets will still be transferred to his/her immediate family.
DISTRIBUTION 1958 (AMENDMENT ACT 1997)
| Beneficiary |
Entitlement |
||
|
Spouse |
Parent |
Children |
|
| Spouse, Parent, children |
25% |
25% |
50% |
| Spouse & children |
1/3 |
- |
2/3 |
| Parent & children |
- |
1/3 |
2/3 |
| Spouse only |
100% |
- |
- |
| Spouse & parent |
½ |
- |
½ |
| Children only |
- |
- |
100% |
| Parent only |
- |
100% |
- |
However, the process of obtaining the letter of administration is long and hectic. Prior to appointing the lawyer to applying the letter of administration, we need first appoint the administrator, and this administrator must support by two sureties (guarantors) with total assets of this two sureties must be equal / over than your estate. It’s to prevent that administrator abscond your estate. Ended up your family may appoint trust corporation as your administrator and of course another cost incurred.
To prevent the above incident happen, and unnecessary cost involved, consider write your will today. Small cost can save big cost. It’s worth. With a valid will writing, letter of administration is no longer required and it will be replaced by grant of probate.
Call/sms us today at 0125559398 or drop us an email at onlinewillwriting@gmail.com
Great! thanks for the share!
Arron