KUALA LUMPUR: The current challenge for the estate planning industry is not so much educating the public on the need for a will or trust as essential in estate planning but the tendency to procrastinate.
Rockwills International Group Group chief executive officer Azhar Iskandar Hew said the attitude that 'I will not die so soon' or 'I am still young' is often associated with the young and continues to exist among parents with young children and the elderly.
"There is also the misconception about estate planning that it is for the rich only. Estate planning caters for the man on the street.
"Procrastination to have a will written or completing an estate plan is another major stumbling block.
Constant education and awareness building are crucial to correcting misconceptions and overcoming procrastination, and our franchisees are primed to do this across"Malaysia," Azhar told Business Times.
In the past, Azhar said that discussing wills and estate planning was considered a sensitive topic, but that is not the case anymore.
Nowadays, the main difficulty lies not in expanding the audience but in raising awareness about the importance of involving a skilled professional with extensive knowledge and expertise in creating comprehensive wills and estate plans.
"Not all wills are the same, and there are limitations to online templates. Each person will have different family dynamics and circumstances.
"So, when a one-size-fits-all approach is taken, it can have unintended consequences such as fragmentation of wealth, potential disharmony among loved ones, and the breakup of businesses," Azhar said.
Azhar also noted that about 50 Rockwills' materials on social media and talks to create awareness and promote will writing and estate planning are written in Chinese for the Mandarin-speaking group.
"We have more than 6,000 estate planners in Malaysia ready to assist consumers with their wills and estate planning.
"Our estate planners are often seen in various booths in malls and public places nationwide, creating awareness.
"As local presence allows us to be nearer to our consumer base, Rockwills has just opened its new branch in Kuantan in September," Azhar said.
He said this is in addition to the company's offices at Wisma Rockwills in Kuala Lumpur, its business centre in Petaling Jaya and branches in Penang, Johor Bahru, Kuching, Kota Kinabalu and Ipoh.
"With our various offices, we will be able to service consumers at the"r locale," he said.
Areca Capital Sdn Bhd chief executive officer, fund manager and financial planner Danny Wong said another common misconception about estate planning is that it is only for the wealthy, older adults and people with minor children.
"Everyone needs to have proper estate planning. It is also for everyone who has something or someone that they cherish and would like to protect.
"Ways to improve perception, awareness and encourage earlier adoption are through awareness talks such as public seminars or webinars, regular articles or columns, and exclusive sessions with the targeted audience (age group, cultural backgrounds, and socioeconomic statuses)," he said.
Wong pointed out that estate planners should wear the hat of a financial planner and understand the client holistically.
"Again, everyone has something or someone they love and want to protect, so estate planners will gauge this information and provide suitable estate planning solutions, not just lucrative services.
"Therefore, it is crucial to have a financial planner for more holistic planning to include investment planning rather than just estate or distribution planning.
"In addition, there are value-added services to complement conventional estate planning services, such as property management, tax planning, corporate advisory (for some trusts with businesses), and legal advisory," said Wong.
Further, Wong said that to go beyond just the awareness stage, estate planners will need to build trust with their clients so that they are willing to share the head and tail of their situation or the actual intention (sensitive information like asset listing, preferred beneficiaries, other concerns, family arrangements etc).
"Estate planners must be aware that gaining trust takes time, so they should refrain from aggressively pushing products.
"When the timing is right, the client will come to you," he said.
Moving on further, the Malaysian Institute of Estate Planners president See Kok Loong said the wills and estate planning industry faces continuous challenges in addressing complex family dynamics, such as fair distribution of 'assets to 'blende' families' (stepchildren, biological children, and new spouses), estranged relatives, and handling inheritance disputes.
He said understanding the family situation and maintaining open communication with the settlor (the person creating the estate plan) is critical for estate planners to address these challenges effectively.
"By closely working with the settlor, estate planners can gain insights into the family dynamics, individual preferences, and potential conflicts that may"arise.
"This information helps them create an estate plan that considers member's specific needs and concerns while aligning the settlor's intentions.
"Furthermore, encouraging open communication and transparency throughout the estate planning process can help prevent misunderstandings and disputes over inheritances," See said.
He said that by facilitating discussions and addressing any potential issues upfront, estate planning minimises the likelihood of family conflicts.
See also said that utilising various estate planning tools, such as trusts and conditional bequests, can provide additional layers of protection to ensure that assets are distributed according to the settlors and minimise the potential for disputes.
"Overall, estate planners must balance legal expertise with interpersonal skills to navigate complex family dynamics successfully and create estate plans that preserve family harmony and settlor's settlor's intentions," he said.
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