EPF should require beneficiaries to be named
SHAH ALAM - The Employees Provident Fund (KWSP) should make it mandatory for all members to designate beneficiaries to facilitate the asset management process in the event of death.
Financial advisor Shamsuddin Kadir has revealed that this proposal would be beneficial to the family heirs as it could prevent disputes regarding the distribution of the deceased's assets.
He explained that naming beneficiaries could also be done for other assets such as bank accounts, land, houses, and cars.
"It should be made mandatory because when the public lacks awareness, they do not realise the extent of the risks involved in this matter. This means KWSP should make it mandatory.
It should be understood that beneficiaries are administrators. So if possible, more than one name should be designated. I don't see why KWSP wouldn't educate (raise awareness) about this and advise people to name more than one beneficiary," he said.
Shamsuddin also suggested that when it comes to assets like cars, the Road Transport Department (JPJ) should play a role by providing forms for naming or bequeathing assets directly to the public.
"Why burden the public with unnecessary third-party dealings to make money? It's not necessary.
There was a case in Temerloh (involving ancestral land claims) that was resolved 50 years after the person's death. The asset distribution process becomes slow when no one is proactive," he said.
He stated that being too busy with work, lack of proactivity, and lack of understanding among heirs were factors that made the asset management process difficult.
"Some cases are delayed because everyone is busy with their jobs, whether in the public or private sector, especially those with KWSP or pensions.
They don't care about their siblings who need the assets; that's what I see. If everyone needs the assets, the process would be faster," he explained.