By Peter Lee
While reading the newspaper recently, I came across a report that saddened me. According to the Credit Counselling and Debt Management Agency, financial abuse is the most common form of elder abuse even more than psychological, physical, neglect, or sexual abuse. The most frequent cases involve theft of money or property and deceiving elders into handing over their assets. Many of the victims, unfortunately, suffer in silence.
One real-life story illustrates this tragedy vividly.
A woman in her seventies had transferred her only property a home left to her by her late husband to her son. She had been deceived into signing documents she believed were related to her husband’s pension. Being not highly literate and trusting her son completely, she signed them without question.
A month later, she discovered the heartbreaking truth that her son had sold the property and ordered her to leave. He refused to let her stay with him, cut off financial support, and severed all contact. Homeless and heartbroken, she moved in with her sister. With only a small widow’s pension, she took on odd jobs like dish-washing to support herself and contribute to the household expenses.
This story is a wake-up call for all of us. Before signing any document especially when it comes from family we must pause and think carefully. Love and trust are precious, but they should never replace caution.
It is important also to recognise that many families do show deep filial piety, love and responsibility. In such households, children honour their parents, commit to care, remain devoted and grateful and these are the families we hope for. But even in the best of families, it’s wise to put in safeguards to protect both the elders and the assets they worked hard to accumulate.
If your goal is to ensure your loved ones receive your assets, there is a safer and wiser way that is through a Will. With a Will, you remain in full control of your assets during your lifetime. Your property may one day become your lifeline and a refuge to fund your living expenses or medical treatment when the unexpected happens. I have seen many cases where life savings were wiped out by medical bills, and selling a property became the only option to survive.
While writing this article, I came across another case where a father went to court seeking to reclaim fourteen million company shares he had gifted to his son years before (in a Muslim family via Hibah / Gift). A bitter legal battle followed, with the son challenging the father’s move to revoke the gift. It is hard to judge whether the father’s initial decision to transfer the shares was right but it clearly ended in family conflict and pain.
For Muslims, an alternative to consider is preparing a Wasiat (Will), which allows specific assets to be transferred to your intended beneficiaries only after your demise ensuring you retain full ownership and control of your property during your lifetime.
Another option is a Deklarasi Hibah (Declaration of Gift), where you declare your intention to give a specific asset to your beneficiary, but the transfer of ownership only takes effect upon your passing. This approach lets you maintain control of the asset while you are alive, yet ensures a smooth transfer to your beneficiary later. However, it’s important to note that once the transfer takes place after your passing, stamp duty will be calculated based on the market value of the asset at that time, which can be a significant cost depending on the property’s value.
By comparison, transferring assets via your Will or estate distribution after death usually incurs only a nominal RM10 stamp duty per property transfer , a far lower cost than transfers made through Deklarasi Hibah or outright lifetime transfers based on current market value.
Ultimately, the decision to transfer your assets during your lifetime or after death depends on your family circumstances. But be mindful that transferring assets to loved ones during your lifetime should never come with the expectation that they will be Hopelessly Devoted To You.