 |
| Normally, the richer they are, the more issues they have over how to protect their assets and business succession - Saw Leong Aun |
Posted on 20 September 2013 - 05:37am
Kang Siew Li
KUALA LUMPUR (Sept 20, 2013): Hong
Kong's late billionaire Nina Wang, once Asia's wealthiest woman. Her case
captivated Asia after her former lover was convicted of forging her will and
was sentenced to 12 years in prison back in February 2010.
Macau casino magnate Stanley Ho. In January 2011, the
public saw a bitter feud among his three surviving wives and 17 children over
the family empire.
Thanks to these much-publicised cases, more high-income
Malaysians have come forward to seek advice on estate-planning affairs, said
Rockwills Corp Sdn Bhd group managing director and director Saw Leong Aun
(pix).
Saw said the group's unit Rockwills Advisory Services Sdn
Bhd (RAS), which was established in 2010 to offer comprehensive estate
planning, has witnessed a surge in business as more rich clients and
businessmen seek to protect their assets.
"Many of these businessmen are multi-millionaires. As
they get richer, the more worries they have (over how to protect their assets).
"For example, some worry whether their daughter's
boyfriend marry her for love or for money. Then there are those with overseas
investments and assets and they want to know how they can minimise the tax
liabilities," he told SunBiz in an interview.
"That's where we (RAS) come in to help them put
together a comprehensive estate planning package that will lay out what will
happen to their assets and the individuals under their care after they pass
away," he added.
While the advisory segment has grown, the majority of
Rockwills Group's business still comes from its will writing and trust services
as well as franchise fees.
Saw noted that awareness about will writing and trust
services among Malaysians have grown over the years, albeit "not very
much". "Today, if you talk to 10 people, four to five will know about
wills and trusts."
He revealed that there is greater awareness in areas like
the Klang Valley, Penang and Johor Baru where the levels hover at 40% to 50% of
the population and 20%-30% for the smaller towns.
Saw attributed the higher awareness to Kuala Lumpur-based
Rockwills having set up four regional offices in Penang, Johor Baru, Kuching
and Kota Kinabalu.
"Another reason why the awareness is increasing
faster now is that many (independent) financial planners have signed up with us
to promote this service to offer a complete package. Today, we have 3,000
registered agents across the country.
"For the other areas, while the awareness of wills
and trusts has improved, it is not as high as that of unit trust and insurance.
One of the main reasons is that we are the only (will
writing) company promoting this business," he added.
Saw said most bank trustees and law firms deal with
corporate clients rather than individuals due to higher will-writing or trust
charges and is less time consuming.
"Will writing for individuals is more personal. The
process (relative to corporate clients) is different, lengthy and tedious.
"For example, signing a loan agreement uses the same
template, but setting up a trust or drawing up a will entails sitting down with
the person, understanding their situation and drafting these clauses. Then the
charges are only RM500," he explained.
"Also, if you are a good client of the company, you
may request to only see the senior partner (to discuss matters). But as a senior
partner (of the company), how do I keep myself from spending time with one
client all the time?
"And after drafting the will, there will be changes and that involves redrafting. If you count the time spent, business-wise it is not worth it for them (bank trustees and law firms). Also, they can only do a few. So, there's no economies of scale," Saw added.
For Rockwills, over time it has set up a system that
encompasses some 300 will precedents and reference clauses based on Parker's
Modern Wills Precedents to suit all requirements.
"We also have about 30 in-house legal advisers to
help draft clauses in special conditions," said Saw.
Saw noted that there is a growing trend of clients who
seek to write terms of endearment to the guardians in their will.
"We started offering clients the option to include
special clauses and instructions to their loved ones which need not relate to
money in their will some 10 years ago when a group of ladies asked to include
special words in their wills after one of their friends died of a heart attack,
without leaving any last word," Saw said, adding that such a request
constitutes about 10% of the 800 to 1,000 wills that Rockwills handle a month.
At the same time, the death of celebrities such as Michael
Jackson and Anita Mui has left people to become more aware of preparing for the
eventuality, he added.
Saw believes that the local will-writing industry is a
sunrise business. Statistics showed that 95% of Malaysian adults are still
without a will.
Founded in 1995, Rockwills is owned by its chairman Johari
Low Abdullah, Saw, Datuk Seri Goh Eng Toon of former Ban Hin Lee Bank, Dr Lee
Chee Koon and Cerilnus Tan@Cyril Pinso.
With about 120 employees in Malaysia, Rockwills has
written about 150,000 wills and holds over RM2 billion worth of assets under
trust to date.
The group realised a gross turnover of RM25 million last
year, covering both Malaysia and Singapore.
"We still have a long way to go. If you compare us
with the insurance or unit trust companies, everybody is aware of their
products because there are many players. That's why we still spend a great deal
of time educating people on wills and trusts," said Saw.
Sign Up!
No comments:
Post a Comment