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Inherit now or will?
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hanhanhan
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Nov 30 2024, 06:56 PM
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QUOTE(imtrobin @ Nov 28 2024, 09:22 AM) Hi, my mum is over 70 now, and consider whether to transfer the property to children now or do a will? My siblings don't have Malaysian citizenship anymore, so I know there's are more steps and fees when doing a will to my sibling, so we are trying to minimizes the fees when inheriting. 2 properties under 1M each, we can transfer to either of us (3 siblings) Is she able to transfer property now as inheritance? What are fees involved in doing transfer now vs executing will? ur siblings not malaysian anymore, cannot hold the property via normal love & affection transfer (inherit now while your mum is still alive), but can do so under probate (after your mum passes). if no intention to keep the house for own stay, sell it under ur mum's name, no tax payable under RPGT. if inherit via probate, if sell within 5yrs kena tax RPGT.
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hanhanhan
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Dec 2 2024, 02:55 PM
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QUOTE(imtrobin @ Nov 30 2024, 10:53 PM) Is RPGT 5 years for multiple properties or just first residence? We don't have any objections, just finding the best way to avoid unnecessary taxes/fees. all properties are subject for RPGT, currently if u hold the property for more than full 5 yrs (means sell during 6th year) then RPGT is 0% for malaysian citizen/PR. doesn't apply to foreigner & companies. each malaysian citizen have once in lifetime waiver for RPGT (eg. if u sell within 5 yrs n is subject to RPGT), however it must be a residential property and u need to have water/tnb bill under ur name dated prior to the date of sale to prove
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hanhanhan
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Dec 4 2024, 03:59 PM
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QUOTE(imtrobin @ Dec 3 2024, 10:57 AM) Oh I see. Then cannot transfer to overseas siblings. So if a child inherit property from parent, likely they won't have water/tnb bill in their name. So still need to switch before it can sell (within 5 years) to avoid RPGT. why cannot have water/tnb in ur name? once u inherit, u can just go change the water/tnb account, then only sell it and utilize the waiver. they just need to see the account owner is urs (tnb/water) on the date before you sell.
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hanhanhan
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Dec 9 2024, 03:19 AM
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QUOTE(imtrobin @ Dec 5 2024, 10:13 AM) If they don't check the water/tnb date, then it is a loophole, no? to qualify for the waiver, it is expressly stated in the RPGT form that you need to have the tnb/water bill registered under your name dated before the sale.
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hanhanhan
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Dec 9 2024, 03:21 AM
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QUOTE(abhipraaya @ Dec 2 2024, 03:02 PM) Is this confirmed? The information my lawyer told me is the opposite. This year i consulted my lawyer who specializes in property law (who also drafted the will) and he suggested let the will do it as transferring now is more expensive. Now I'm confused. not much difference in costs tbh if that property is the ONLY property ur mum has, then transferring it now is cheaper than will, because for the probate u literally dont need to do anything if your mum died with zero assets, or you have the account passwords for your mum's bank account and can transfer the money out urself. if she totally has no other tangible assets u might not even need to go for probate (cost about 5-8k for the probate, and excluding any property transfer transactions after probate obtained)
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