Is there a need to freeze deceased's bank accounts?

THE estate-duty law, as it stands, favours those who invest in residential properties with exemption of up to $9 million, compared to only $600,000 for 'Other Assets'.

Because of this, many who are in the middle-income group are disadvantaged. When the sole breadwinner dies, the rest of the family are often in financial distress due to the freezing of the deceased's bank account(s) by the bank. To get the bank to release the funds, the family has to seek help from lawyers and accountants and this adds to their financial woes. This process can take anything from a few months to a few years. Much of the problem is attributable to the family's ignorance of the deceased's financial affairs and their inability to explain or furnish information to the tax authorities to verify the deceased's assets and liabilities.

This invariably results in the family paying higher estate duty than had they been in a position to satisfy the tax authorities with the requisite information. The problem does not end there. In the meantime, the family has to rely on friends and relatives to support them financially until the matter is settled fully.

As the Government has often spoken of the need to build a gracious society and to show compassion to our fellow citizens, I hope it will set an example by abolishing estate duty.

Meanwhile, it would be appreciated if the authorities could review urgently the provisions of the law, particularly the freezing of bank accounts of the deceased by financial institutions.



Patrick Chan Choon Meng