The deceased, ABC, died intestate (without a will) in 1996. Mr ABC was the sole strata title holder for an apartment unit. He left behind a wife and 3 children. One of them is a minor (now 17 years old).
His wife, DEF, retained a law firm to extract the Letter of Administration and transfer the name of the title to the beneficiaries. Her two children has renounce the right of claim to the apartment.
10 years has passed but DEF still not able to sell the apartment.
Since the value of the property is less than RM600K, it is within the jurisdiction of the Land Office under the Small Estate Distribution Act.
The conveyancing clerk did not consider the fact that one of the beneficiaries is a minor and had not execute a deed of trust. The representation to the land office was rejected.
DEF came to see me. She knew that I am on the path to become a lawyer.
I rang up the firm and talked to the legal clerk who handles the file. The clerk told me that she has to pay up a RM500 disbursement for the preparation of Deed of Trust.
The situation is like this:
The name on the strata title: DEF as administrator of the estate of ABC.
The correct name should be DEF and DEF as trustee for the XYZ (the daughter)..
When the daughter reaches 18 years old, the name on the title should be change to DEF and XYZ.
Thus, at this stage, it is imperative to execute the deed of trust.
In addition to that, according to Para 4 Schedule 2 of Real Property Gain Tax Act, there is no chargeable gain for inheritance of real property from deceased under a will or intestacy. Therefore, no tax liability under RPGT.
Conclusion:
1. Peoples always told me that they have bad experience with the law firm. Well, it is half truth.
Most of the time, they were actually dealing with the legal clerk and not the solicitor.
2. For those suffer a terminal disease, draw up a will to spare your love ones from all these legal hassles.