Late at night, Amelia was folding clothes in the living room of her double-storey terrace house in Petaling Jaya, Kuala Lumpur, while an old drama replayed on the TV. The kids had finally fallen asleep — one of the rare quiet moments in her day. Under the warm yellow light, she heard soft footsteps. Six-year-old Emma stood timidly at the doorway, hugging her stuffed toy.
“Mom… I had a nightmare.”
The little girl whispered, then climbed onto her lap.
Amelia wrapped her arms around her daughter. As Emma slowly drifted back to sleep in her embrace, a thought Amelia had avoided many times suddenly resurfaced:
If she and her husband Daniel were no longer around, what would happen to Emma and her younger brother Ethan?
The next morning during breakfast, she casually asked her husband, “Have you ever thought about… if something happened to both of us, who would take care of the kids?”
Daniel put down his toast, startled. “Don’t say things like that. We’re young and healthy.”
“I know,” Amelia sighed. “But when Emma cried and came looking for me last night, it hit me — if something really happened, who would handle their school fees, medical bills? Even pocket money? Who would the court give guardianship to? Would our families fight over money?”
Daniel looked up, his expression turning serious. “You’re talking about legal guardianship?”
“Yes. And wills. I read that without a will, the court decides who gets custody of the kids. What if our relatives argue, or worse, want control of the money? And insurance payouts don’t automatically go to the children — they can’t touch a cent if they’re under 18. Unless we set up a trust fund.”
That afternoon, the thought weighed heavily on Amelia’s mind. During lunch with another mother from Emma’s kindergarten, she finally couldn’t hold back and brought it up again.
“Have you written your will?” she asked quietly.
Her friend nodded. “Just did it last month. I appointed my sister as the guardian. Honestly, at first I thought it wasn’t urgent… but the more I thought about it, the more I realized how important it is. I also set up an insurance trust, to make sure the money actually benefits the kids. Otherwise, how is a guardian supposed to manage? They have their own families to support too.”
“You can do that?” Amelia’s eyes widened in surprise.
Ensuring Asset Flow & Preventing Family Conflict
“Trust documents allow you to precisely plan how every cent will be used — from the children’s school fees and medical expenses to daily living costs, and even the guardian’s monthly allowance. Think about it: if the insurance payout goes directly to minor children, the money becomes ‘frozen’ and untouchable until they turn 18. Are we really expecting our siblings to pay everything out of their own pockets — and then wait more than ten years to be reimbursed? Is that fair?”
Amelia kept those words firmly in mind. That night, she had a deep conversation with her husband Daniel:
“We need to act immediately: write a will that clearly names the guardian, and set up an insurance trust. This ensures the proper flow of assets and prevents the children from becoming pawns in family disputes.”
Daniel was still hesitant. “But we already bought insurance. Isn’t that enough?”
“Having insurance without a trust means the money will be frozen, and the children can’t access it until they turn 18,” Amelia explained patiently. “Do you really expect your brother or my sister to pay everything first — international school fees, piano lessons, dental bills… and then wait more than a decade to be reimbursed?”
That finally woke Daniel up. He let out a long sigh. “You’re right. We need to settle this now to have peace of mind.”
Within a week, they met with a professional estate planner. Under the adviser’s guidance, they drafted their will — appointing Amelia’s cousin Sarah as the primary guardian, and Daniel’s older brother as the backup. They discussed not only the specific arrangements but also whether the guardians’ values aligned with their own: who had the stability, patience, and educational philosophy they trusted.
Establishing an Insurance Trust & Setting Clear Fund Usage Terms
Next came the crucial step: setting up an insurance trust. They transferred their existing life insurance policies into the trust and established clear terms — including a monthly allowance for the guardian, dedicated funds for the children’s education and medical needs, and an amount reserved until the children turned 25. They also added an emergency clause, allowing early withdrawals in special situations such as university tuition or medical emergencies.
The estate planner explained in simple words:
“When you’re no longer here, the trust becomes your banker and decision-maker. No frozen accounts, no legal delays, no chaos. The guardian will receive the funds needed to raise the children, and your children’s future will remain secure.”
Once all documents were signed, Amelia finally felt relieved. Not because she expected something bad to happen, but because she knew that even if the unexpected occurred, they were prepared. The fear she once avoided had now become a responsibility she had courageously fulfilled.
For many Malaysian parents, estate planning may seem heavy, distant, or even unlucky. But Amelia understood that it is one of the most loving things a parent can do — not only to safeguard their children’s inheritance, but also to protect their growth, daily life, and future.
A will without a designated guardian is incomplete.
And insurance without a trust? Almost the same as inaccessible funds.
For families with children, estate planning is not just about asset transmission — it is about who will raise the children, how they will receive support, and whether they can still feel your love and protection even after you are gone.
As Amelia told Daniel that night:
“We take care of them every single day while we’re alive. This is just another way of continuing to protect their future.”