I came across this old article, called Placing Trust in Wills, by BhupinderSingh which first appeared in the June 2006 edition of MalaysianBusiness:
WILLS and trusts are generally associated with the rich. One company that is bringing these services to the mainstream is the Rockwills group. When it comes to distribution of wealth, wills and trusts play an important role, but few use them as not many people are familiar with this subject.
The common perception among the public about making a will is that it does not involve estates which are small.
`This has nothing to do with the size of a person’s estate,’ says Saw Leong Aun, chief executive officer of Rockwills Corporation Sdn Bhd, the will-writing arm of the group. He adds that this misconception leaves many families vulnerable if the breadwinner passes away suddenly.
The company’s survey of some 1,100 respondents last year showed a high percentage of Malaysians (91%) believe that every adult should write a will, but more than 81% did not have one yet. While the perception about the importance of a will is heartening, only about 40% of the respondents said they would write a will when they have accumulated wealth – a glaring lack of understanding of estate and estate management or wealth distribution.
`This perception is wrong. Most adults have some assets, be it a bank account, securities, a car or a house. In fact, not being wealthy is all the more reason to have a will as the dependents will need access to funds quickly following the breadwinner’s demise,’ explains Saw.
By law, when a person dies without a will, all his/her assets will be frozen until the court grants a letter of administration. This can take anywhere from two to six years, according to Saw.
Having a will shortens the distribution process considerably as the executor needs only to apply for a probate from the court. This is usually given within two to six months. Trust services go hand in hand with will- writing services, as more often than not, the testators use this service. A trust will contain specific instructions to manage, protect, preserve and distribute the creator’s assets. The group incorporated Rockwills Trustee Bhd early this year to become an integrated estate planning specialist. The group’s ultimate vision is much grander.
`The company’s aim is to become a one-stop centre for the golden years offering estate planning advice, bereavement care, retirement planning, and tax and investment advice, including banking products. We want to provide a place where they can shop around for such services. Now it is fragmented and no one is catering to the retired,’ says Johari Low Han Hing, the group’s chairman.
Rockwills Corporation was established in 1995 by Saw and Johari in a partnership with a few friends. The company is a member of the Rockwills International Group, and is the top professional will- writing company in the country.
The early years, according to Saw and Johari, were tough but things are moving now. `In 1995, we only wrote 105 wills. Last year, we wrote 8,350, due to a growing awareness. This is still small if compared to unit trust or insurance, which may write over a hundred thousand polices every year,’ says Saw.
Rockwills has now written a total of 56,000 wills. It’s the only company that advertises its services in the papers. Will writing is a growing business, with many banks and financial planners offering this service, riding on the awareness created by Rockwills, according to Saw, who adds that its nearest competitor only wrote 800 wills last year.
Rockwills’ edge is its business model. The company has franchised the will-writing business by training financial planners and insurance agents as professional will writers. Rockwills provides the legal backup through its 12-man legal team.
The company has trained and supports some 2,300 franchisors as at the end of last year across the country. Many of the financial planners offering will-writing services in the market are Rockwills franchisees, according to the management. `It’s a growing business. On average, about 30 new franchisees join us every month to learn will-writing services. With our franchisees, we have made it personalised and convenient. The franchisee meets clients personally at a time of their convenience,’ says Saw.
The wills are prepared by the head office, based on information collected by the agents.
Rockwills trains the franchisee, who pays a fee of RM1,800 for a term of five years. The company holds a three-day training programme, and prospective franchises must pass a test.
`We want to reach out to the masses but we are not in the business of providing cheap service. We want to be the equivalent of McDonald’s in this business. We essentially want to give fast responsive quality service at affordable prices,’ say Johari.
Rockwills also has an associate dealing with syariah-related will writing. It also writes wills in the Chinese language.
Johari, or Patrick Low as he is more commonly known, has a colourful past in corporate Malaysia.
He used to head or sit on the board of companies like the Berjaya Group, KFC Holdings (M) Bhd, Taiping Consolidated Bhd, Nam Fatt Bhd, Metroplex Bhd, Apex Equity Holdings Bhd, Golden Plus Holdings Bhd and Arab-Malaysian Corporation Bhd. He was elected as a council member of the Malaysian Institute of Accountants in 1993. Today, he still sits on the board of public companies like I Bhd, Hirotako Holdings Bhd, Kumpulan Powernet Bhd and Global Carriers Bhd.
`This is my passion. It’s not big but it’s something good. We have done some 56,000 wills, which will help 56,000 families,’ he says.
A will costs between RM250 and RM500 on average, depending on complexity. The profile of testators has started to change as well. When the company started 11 years ago, the main customers were older and more affluent people. Now 60% of its clients are in the 30 to 50 year-old range. This segment of the market has better awareness of the importance of will writing, according to Saw.
Many have young children and use the will and trust to appoint guardians for their children, and also to plan out the financial aspects in case of unforeseen events or death.
The company offers business continuity trusts, which plan how a business partnership will be managed in the case of one or all the partners passing away. The trust will allow for the business to continue running, and reveals how family members will be compensated. Parents with special needs children can also set up a trust fund for them.
Another area Rockwills wants to tap is the will custody services. It now keeps in custody quite a number of wills, but wants to develop this into a national will custody centre. `Keeping the will is as important as having one written. The company encourages the public to keep their wills here, says Johari. Some lawyers are already using the facility. Rockwills charges RM80 annually for the custody services, or the public can opt to make a RM800 to RM1,200 lifetime payment. The company will give discounts for rewriting wills if the customer pays the high-end custody charge. The company is starting to get the recognition from the public for its services. Rockwills won the Silver Award for emerging brands from the Malaysian International Chamber of Commerce and Industry last year.