During the webinar featuring Low Wan Gem, CEO of Rockwills, he shared with the audience about the market potential of estate planning business in Malaysia and the wide range of estate planning products and services provided by Rockwills that can benefit business franchisees. Below is part of his sharing.
The business of estate planning is still a vast, untapped market. Even though Rockwills has been quite aggressive in advertising, educating the public, providing educational, charts and reaching out to many organizations and societies, the awareness has improved but the market penetration is still very low. I believe there are still many who wished they have and should have written a will – who are adults, or couples that have not written their wills. We even advertise in the highway. You’ll see our billboards In the PLUS Highway There is a large market potential for in Malaysia
Besides the big market potential for Rockwills Franchise Business, here are some questions which I would like to address with you now. Questions such as: “Why do I need to pay Rockwills to sell their services?” People who ask these questions usually compare with agencies, direct selling, etc, where they don’t have to pay the company and yet they can represent the company and sell their services.
“Can I write my own will?”
“Are there many cheap or free will-writing services in the market?”
I’ll address all these but first things first, you’ll have to understand that even though you can write your own will, or you can get a free will or a cheap will in the market, a lot of people still won’t go for the free wills because there are no such thing as free lunch in this world. A lot of people may tie this on with other investments or other commitments.
Rockwills has started this franchise business originated from UK in 1995. At that time, we are the franchisee and they are the franchisor. Since year 1999 they handed over the franchise master licence and we are now the franchisor and we have even expanded to Singapore. For people who have invested in this business, you have the advantage because you can transfer your licence. You can even sell your license with a profit if you have built your business to a certain level and people may want to buy over your license and continue the service.
Will writing isn’t so simple or easy. Sometimes you really have to be very detailed with it. In the newspapers, you got to know that there are people who are not happy with their wills. Some of them may go to the court and sue their family members like:
- “Sister sues brother over dad’s will,”
- “Tycoon signed wills not explained to him,”
- “Two out of woman’s three wills are not valid,” and so on.
So people today are more careful when they plan wealth distribution.
So, what kind of wills would your clients need? You have to ask yourself an honest question. Do you want to be a professional Estate Planner or do you just want to provide a free will writing services? In many situations, a basic will or a free will would not account for assets that you control. This means that, sometimes, your clients will not be able to just have a simple will to take care of their wishes.
For example, a businessman may say that, “I want to will away the house.” Because I control the house, I can sell the house anytime. So, “I want to will the house to my…” But, can he do that? On further discussion you’d realize that the house is actually bought under the company. He can then say that he controls the company. He may be a 99% owner, he may be a 95% owner. He has the right to sell the house when he’s alive as a major shareholder who controls the company. But if he put it in a will, can he do that? No, he can’t, because it is not under his name, it is under the company’s name. He can only will away the share. So, a basic will may not be able to help him out.
If a person has created a Family Trust, had an EPF account, bought a life insurance policy, and so on, those things are not automatically covered by a basic will. Why? Because, actually, you don’t need to put it in a will. People will say that there’s an EPF Act, there’s a Life Insurance Act, which is true. Most of them have nominated a nominee or a beneficiary. But, many of them also share with me that they have gone for holidays vacation together with their only nominee in the EPF or the only beneficiary in their life insurance. Accidents can happen when it is most unexpected. If anything happens to the policy holder or the account holder when they pass on together with the beneficiary, is there a substitute beneficiary in your life insurance policy? Do you have a substitute? No, you don’t. You can’t even state that in your life insurance policy.
Sometimes it is better not to have a basic will but to have a comprehensive will where you can mention that in the case your nomination fail for your life policy, your substitute can be mentioned in the will. Who is going to take over the benefits of the policy? In most situations, we realize that in the market a lot of people make a comprehensive will rather than a basic will. So, in order to do a good job, a professional job, you have to make sure you understand their background, their wishes, and their needs before you proceed in order to not waste time.
When you talk about estate planning, it’s not just about will writing. The four major estate planning tools we will uncover are:
- Estate Planning for Businessmen,
- Business Continuation,
- Trust and Life Insurance which are very good funding vehicles.
The services that we provide in Rockwills, for Will and Custody are:
- professional will writing – in English, as well as in Chinese, and Mandarin.
- professional will translation – We can offer services in English or Chinese, professional will translations on English to Chinese, Chinese to English, and so on.
- Will Custody Services – For wills not even written by Rockwills, we provide Custody Service for them.
- Executorships Appointment – in the case where testators appoint Rockwills trustee to be the executor in their will.
- UPrepare Packages – where there is a discount factored in for Estate Administration;
- Private Trust
- Administration of the Estate Appointment Executor in the Will.
- Insurance Trust – a lot of people when they buy a policy, they would still want to control how the policy money is paid out to their beneficiary whether by installments or stacked up payments, and so on.
- Charitable Trust – more and more people, mostly those who are rich can donate to charity during their lifetime. If they want to do it upon death, they can setup the Charitable Trust.
- Investment Trust.
- Business Value Protection Trust – which is more for businessmen.
- Declaration of trust which is UDeclare.
- 3G (3 Generation) Family Business Trust.
Of course the details of these will explained and discussed during our all day training and our subsequent books.
For thorough information, watch the webinar replay here.