Estate Administration Workflow (Affin Hwang Trustee Berhad as Corporate Executor)
Estate Administration Fee Structure (Affin Hwang Trustee Berhad)
The annual fee is calculated based on the gross value of the estate as follows:
- 1.0% on the first RM5,000,000
- 0.5% on the remaining balance
Minimum Fee: All estates are subject to a minimum administration fee of RM8,000 per annum.
Taxes and Disbursements: The fees stated above are subject to prevailing government taxes (where applicable) at the time
of administration.
Estate Administration Referral Commission Fee(Affin Hwang Trustee Berhad) for Koha Legacy Planners
This commission is derived from the administration fees charged by the Trustee:
- Rate: 15% of the annual fee charges OR a minimum of RM 1,200.
- Duration: Payable for the first five (5) years of administration or until the estate is fully settled, whichever
occurs first.
A Guide to the Estate Administration Process
Step 1: Notification & Initial Deposit
Upon the Testator’s passing, the family notifies Affin Hwang Trustee Berhad. To trigger the commencement of the file, an
initial deposit of RM10,000 is required.
- Who pays? While any individual (such as a friend or relative) can technically make the payment, it is highly
recommended that a family member with a direct interest in the estate handles it. This ensures smoother tracking and
simplifies any future reimbursement processes.
- Exceptions: If you choose to purchase an Insurance Trust, you have the option to settle legal fees and the Grant of
Probate (GOP) process through the trust during the application. If this option is selected, no upfront deposit is
required, as these costs will be covered by the trust's arrangements.
- Purpose: This deposit provides the initial liquidity needed to kickstart legal proceedings.
Step 2: Grant of Probate (GoP) Application
Affin Hwang Trustee Berhad engages a lawyer to apply for the GoP.
- AHTB can use its panel lawyers, or a Koha Panel lawyer nominated by the family.
- Cost: Legal fees are not included in the administration fee. The RM10,000 deposit partially will be used to pay
lawyer to kick start the process
Step 3: GoP Extraction & Reimbursement
The GoP is typically extracted within 3–6 months. Once AHTB can officially access the estate's bank accounts, the
initial RM10,000 deposit is reimbursed to the payer. If the estate lacks cash, AHTB will liquidate assets to raise funds
for the refund.
Step 4: Asset Consolidation & Fee Charging
The estate administration fee is charged. AHTB sends formal letters to banks and financial institutions to consolidate
all assets and identify liabilities.
Step 5: Debt Settlement & Gazette Notice
AHTB settles all valid debts, including LHDN (taxes) and bank loans (car, personal, business).
- Private Debts: To protect the estate, AHTB publishes a Gazette (Notice to Creditors) for 3 months. This is usually
done during the GoP application (Cost: ~RM100++).
- Liquidity: If cash is insufficient, AHTB reserves the right to liquidate the easiest/fastest assets to raise funds
for debt settlement.
Step 6: Distribution & Handover
After all debts and taxes are cleared, AHTB distributes the remaining assets to the beneficiaries as per the Will.
- Physical Items: AHTB takes responsibility for the handover of physical assets (e.g., jewelry) only if they are
specifically mentioned in the Will and can be located.
Additional Notes
- The administration fee for Affin Hwang Trustee Berhad is charged per annum. It is in the beneficiaries' best
interest to provide documentation quickly to ensure the process is completed within the first year.
- Insurance Trust: If the client has an Insurance Trust, during the initial insurance trust application process, they
could opt to fund the RM10,000 deposit and legal procedures using the trust funds. This prevents the family from
having to pay upfront during a time of bereavement.