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One of them is the introduction of a personal tax relief of up to RM500 for expenses related to wills and estate planning to encourage more people to manage their estates.
“This encourages individuals to proactively engage in estate planning, which is essential in addressing the issue of unclaimed monies that currently total RM11.5 billion.
“By providing tax relief, the government can incentivise responsible financial planning and ensure that more individuals create wills,” said MIEP in a statement.
MIEP also suggested tax incentives for family offices, including a 15% tax rate on investments exceeding RM20 million to bolster financial security for families and promote better management of wealth across generations.
Another proposal is for a reduced tax rate of 16% for income generated by family trusts, making it easier for middle-income families to establish these trusts before advancing into the T20 category, where setting up family offices becomes more feasible.
MIEP also suggested a capital gains tax exemption for the transfer of family-owned businesses during estate planning.
“This measure will facilitate business continuity and succession planning, allowing family businesses to be passed down without the burden of significant tax liabilities,” said MIEP.
The other suggestions include increasing public awareness of estate planning through the national education curriculum, and ensuring vulnerable groups such as low-income families and the elderly have access to estate planning services.
“The implementation of these initiatives will not only benefit individual families but also contribute to the country’s overall financial stability,” said MIEP.
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