Frequently Asked Questions:



Estate Management
  • What is the meaning of estate?
    Estate or legacy means money or property left by the deceased which includes moveable and immovable assets. Moveable assets include cash, banks savings, shares, EPF savings, insurance claims, vehicles, furniture, clothes, and others. Immovable assets include assets such as land and anything which is of significant value on the land such as mines, paddy fields, well, lake and others.

  • What should be done before the distribution of the estate?
      1- Determine death / lost of heir
                  1.1 – Death Certificate
                  1.2 – Obtain the Proclamation order from the court (civil/syariah)
      2- Identify the deceased’s heirs
      3- Identify the deceased’s assets
      4- Identify the deceased’s debts and outstanding loans
      5- Identify the deceased’s last will and testament or ‘wakaf’ (donation for religious purposes)

  • What do I do if I do not have a Death Certificate?
    Proof of death such as the Death Certificate or burial permit must be enclosed together when an application is made to distribute the estate of the deceased. Usually these documents are issued by the hospital or police. If the death can be proved by normal circumstances, an application to obtain a Presumption of Death Order must be made in the High Court.

  • What is the meaning of Testate and Intestate Estate?
    If the deceased left behind any assets together with a legal and authentic will or last testament which includes ways to distribute the assets among the heirs, this estate is considered as a testate estate.
    For non Muslims, the will is considered lawful if it does not contain conditions against the Estate Management Ordinate and it’s legality is not disputed by any of the heirs. For Muslims, the deceased can only bequeath 1/3 of the estate to non heirs ( with or without the heirs’ agreement). While individuals who pass away without writing a will or last testament, leave behind intestate estate.

  • What is the meaning of small estate?
    Intestate estate below the value of RM 600,000.
    The following assets can be considered as small estate:
    • Landed property (with or without house)
    • Landed property and moveable property such as jewelry, shares, EPF savings, cash , vehicles, furniture, clothes, and others
    • Landed property and any amount of claims under the Section 7&8 of Civil Act  19566.

  • What is the meaning of normal / common estate ?
    Normal or common estate refers to any assets left behind by the deceased with or without a will or a portion of it without a will.
    The including assets can be considered as normal / common:
    Moveable and immovable assets worth above RM 600,000
    Immovable ( landed property ) worth above RM 600,000 and,
    Moveable assets only such as cash, shares and vehicles even though the total value is below RM 600,000

  • What is the meaning of ‘Probate’?
    Probate is the action to verify the last will and testament of the deceased. The purpose of a probate is to provide legal recognition to the last will and testament.

  • Who can apply for the Letter of Administration (LA)?
    Application can be made by :
    • Heirs of the deceased such as widow or widower, male and female children, parents, siblings and others
    • Creditors such as moneylenders, banks, cooperative and others

  • What are the procedures to apply for a Probate and Letter of Administration?
    For testate and intestate estate which is considered common estate, the application must be made at the High Court nearest to the address of the deceased. If the deceased has left behind a will or last testament, only the High Court has the jurisdiction to issue the probate. If the deceased did not leave behind any will or last testament, the application for the Letter of Administration without a will must be made.

  • Can a Trust Deed be considered as the deceased’s estate?
    Yes, because it is the deceased’s assets. But if the deceased is a trustee, the assets may not be considered as the deceased’s estate.

  • If the deceased does not have any heirs, who can apply to distribute the estate?
    For estate without any heirs, the Baitulmal. Islamic State Council, chieftain of the village, Placement Officer and Amanah Raya Berhad can become the applicant.

  • When can the application for the distribution of the estate be done?
    As soon as possible, most appropriately within 6 months after the death. Early application is crucial to avoid heirs’ death which may increase the number of substitute heirs and may cause difficulty and delay in the settlement of the distribution.

  • Can the applicant obtain the service of Amanah Raya Berhad in the management of the application?
    Yes, the applicant can obtain the service of Amanah Raya Berhad.

  • What is the meaning of a trial or a hearing?
    A trial or hearing is a form of investigation which is conducted by the Land Administrator to determine the situation and position of heirs for the a particular application. Other than that it is also a meeting place where any claims may be made and a distribution order will be issued.

  • What are the documents that need to be brought to a trial or hearing?
    Original documents such as identity card, birth certificate, death certificate, land ownership papers, share certificates, bank savings book and other documents related to the deceased’s assets.

  • What is the reason for a trial?
    A trial is to determine inheritance, distribution and to settle claims by related parties.

  • Who must be present during the day of the trial?
    All heirs must be present (above the age of 18 years), related parties and witness including village chieftain if their presence is necessary.

  • Who can inherit the deceased’s assets?
    If the deceased is a Muslim, the heirs are determined according to the Faraid regulations and this includes parents, wife, husband, male and female children, male and female grandchildren and others. For non – Muslims, heirs are as per stated in the Distribution Act 1958 and this includes parents, husband, wife, children and issues.

  • If the deceased is a citizen, and leaves behind non citizen heirs, can the heirs inherit the deceased’s estate?
    Yes. If the deceased is a citizen and leaves behind non citizen heirs, the heirs can inherit the deceased’s assets. Nevertheless, it is subjected to State Land Rules. The registration of the non citizen heirs must be made to the state authority. If the application is successful, a certain amount of fees may be charged.

  • What is the meaning of guardian?
    A guardian refers to an individual appointed for heirs who are under age (a minor) or disabled. The guardian acts on behalf of the heirs during a trial.

  • What are the responsibilities of a guardian?
    A guardian is responsible towards the needs of the under aged and disabled heirs and is granted authority to determine the distribution for the person in care.

  • Who can be appointed as a guardian?
    The appointment of the guardian is based on the discretion of the Land Administrator Nevertheless, it is the next of kin who are usually appointed.

  • Who is referred to as the holder of the Letter of Administration?
    The holder of the Letter of Administration or administrator is the person or party appointed by the Land Administrator after the estate distribution trial. The administrators are responsible to ensure the distribution of the deceased’s assets by preparing an inventory, accepting and making payments for the heirs until further distribution order is issued.

  • If the Administrator is not trustworthy in performing their responsibility, can another administrator be appointed to replace the administrator in charge?
    Yes. The administrator which was appointed can be terminated by the Land Administrator based on the application made by the heirs using the Latter Application Form (P Form). The related Land Administrator may also appoint a new administrator if deemed necessary.

  • Does a Muslim nominee have full right towards the money in the deceased’s EPF savings, Tabung Haji savings and Insurance ?
    As an appointed nominee, they have full right to withdraw the money. But the National Fatwa Council has stated that the nominee is also appointed as an executor who is responsible to divide the money among the deceased’s heirs according to Faraid.

  • How are the assets of a non Muslim distributed?
    The distribution of a non Muslim’s estate is according to the last will and testament of the deceased. In the absence of a will, the distributions of the estate will be done in accordance to the Distribution Act 1958 (Act 300). Nevertheless, distribution of the estate can be done according to the heirs’ agreement.

  • What actions can be undertaken to solve a distribution of an estate in the case of a missing or untraceable inheritor?
    The missing of the inheritor can be advertised in the local newspapers. After a certain time period, the trial will commence and the distribution will be made in accordance to the Faraid regulations for Muslims and the Distribution Act 1958 for non Muslims. After that an administrator will be appointed to administer the heirs’ portion. If a selling order is issued, the portion of the missing inheritor will be kept at Amanah Raya Berhad.

  • Can a Muslim heir inherit the estate of a non Muslim?
    No, the Syafie Mazhab / Sect prohibit Muslims from inheriting non Muslim estate and non Muslims are also prohibited from inheriting Muslim estate.

  • If the deceased is a Muslim and has an adopted child and in the child’s birth certificate it states the deceased as the lawful father, can the child inherit the father’s estate?
    Adopted children to Muslim parents are not qualified to inherit their step father’s estate even if the birth certificate states the decease as the legal father. If there is a dispute, the case will be brought forward to the Syariah Court to determine the authenticity the allegations.

  • Are adopted children by non Muslims qualified to inherit the deceased’s estate?
    Yes, the adopted children by  non Muslims are qualified to inherit the deceased’s estate if their status is registered legally under Adoption Act 1952( Act 257)

  • What is the meaning of Faraid ?
    Faraid is the estate inheritance an distribution law for Muslims according to the Al-Quran ,Sunnah and Ijmak Ulama.

  • What are the rights of illegitimate children in the inheritance rights?
    Illegitimate children are qualified to inherit their mother’s estate but are not qualified to inherit their father’s estate.

  • What are the rights of  divorced wife?
    A divorced wife is qualified to obtain common property from their (husband and wife) efforts together during their married life. If the husband dies during the idah period, the wife is entitled for 1/8 of the husband’s estate.

  • What are the portions of the male children compared to the female children?
    According to the Faraid regulations, male children will receive 2 portions and female children will receive 1 portion.

  • What is the actual aim or meaning behind the above distribution?
    The above distribution was discussed by Islamic scholars. For males, they are burdened with the responsibilities to provide for their families and to pay the mahar (dowry). On the other hand, females are not required to do so. This goes to show that men have more and heavier responsibilities than women. Therefore men need wealth more than women

  • What are the matters that must be completed before distributing the deceased assets?
    • Funeral expenses
    • The deceased’s debts and loans
    • Trust Assets
    • The deceased’s will
    • Distribution according to Faraid regulations
 
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