What Happens If You Die Without a Will in Malaysia?

What Happens If You Die Without a Will in Malaysia?

I was the chairperson for another full-house event by Comfori. It’s their “Malaysia Property Law Conference 2024.” (image below) I learnt a lot from the speakers and one particular speaker’s topic stands out as something that I really think couples should do in advance, especially if we already have children. As I listen to some of horror stories, I think many of these could be avoided if we have written a will. No one could predict unforeseen circumstances.

The speaker is Sim Wen Yee, Founder and Business Partner at Sim & Rahman. Yes, she is a qualified lawyer specializing in Estate and Inheritance. She informed all of the delegates that there are lots of good information at her website: simrahman.com I quickly dropped by her website as soon as I have the time as learning something new is critical.

As I browsed through her site, I saw the below article which she wrote and I think it is very relevant. So, I just take some of her points. If you want to read the article in full, feel free to browse her website yeah. simrahman.com If need her service, feel free to contact her directly yeah. No need to mention my name, no extra discount.

1. Basic will 

This is the simplest and most straightforward will most Malaysians can and will consider. As its framework is comprehensive and easy to comprehend, many couples tend to opt for this kind of will. 

In a simple will, the contents are pretty straightforward. All you need to include are your trustees and your beneficiaries. In a simple will, you’ll include all your assets and how it is divided up between your beneficiaries. 

You can have a lawyer to legalize this simple, basic will so it will be harder for 3rd parties to contest it. Although non-legalized wills may not hold as much power as a will that is legalized by a certified lawyer, it’s still valid nonetheless. You can also edit the will every now and then when you have acquired new assets or let go of some. 

2. Testamentary will 

A testamentary will is one where you place some assets into a trust for the benefit of your beneficiaries. You will then name a trustee to handle your trust for you. It’s useful when you have beneficiaries who are minors or underage and you’ve passed away before your time. 

As you may pass away before your beneficiary (your children, for instance), you may not want them to handle the assets on their own for very logical and understandable reasons. In this case, the appointed trustee will guide and look after how your assets are managed until the minor beneficiary become of legal age. 

In this kind of will, you can put assets in the trust and place certain terms and conditions on the inheritance. It’s kind of like a step-by-step guide except in the form of a will or trust. In this kind of will or trust, you can say by a certain age, the minor beneficiary can inherit some assets and whatnot. By a certain age, the “minor” beneficiary would have inherited all of their shares in the will. 

There are a few more including Joint Will and also Living Will. Read it here: simrahman.com

What happens when we do not have a will and we left this world?

Again, referring to simrahman.com (click here to read the full article. Below is just a small part to answer the question of what will happen if we left this world suddenly and has no will. Below would be for non-muslims.

#1 The estates will be frozen until the case is solved

#2 The family members have to nominate an administrator. The decision requires permission from all the interested family members involved by signing the renunciation of administration letter to be witnessed by the commissioner for oaths.

#3 The protocol for wealth allocation is the same as when you have a valid will. The priority is given to the provision of funeral expenses.

After the preference, the provision shall be made to the outstanding debts. And finally, the balance of the estate(s) shall be inherited by the beneficiaries based on Distribution Act 1958 (amended during the year 1997), while the Intestate Succession Ordinance 1968 is used for Sabah.

#4 The court may nominate a guardian for the will-owner who are still minors (children who are under 18 years old) who may not be the will-owner’s favourable candidate.

#5 Before the will-owner can allocate the wealth, the beneficiaries have to apply for Letters of Administration. Subjecting to the asset’s value, they can also apply for the L.A. at the District Land Administrator office or AmanahRaya Berhad.

Additionally, the administrator will have to seek for 2 guarantors that can guarantee the same value of the asset as the will-owner. This generally takes about a whopping 6-9 months!

#6 These guarantors must make sure that the estate(s) are being properly allocated and the accounts are properly processed.

In the event of any stealing, the guarantors have to carry the obligations of refunding the loss.

#7 Guarantors are not needed if the total value of the asset(s) is less than RM600k where the matter could only be filed in the public administrator which may takes up to 3 years to be completed.

Here’s that full article: simrahman.com

Conclusion

I think having a will helps the loved ones get what we want to give them without the need to be lost at a time when they are also sad too. Do we want to give certain assets to certain beneficiary but not all others? If we are already very clear about this, then make it very clear to the authorities with a will which will allow everything we wanted to be executed accordingly. Happy deciding.

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