When a person passed away without a Will, he/she will be deemed to have died intestate.
Upon being notified of the person’s passing, banks may freeze accounts and the authorities may not allow any transaction of the assets of the deceased.
An administrator is needed to manage the distribution of assets. However, because no specific person was identified, it means that anyone eligible under the law may apply. This usually leads to infighting between family members. The process can be long and costly. Further, until an administrator is appointed, the estate of the deceased is usually untouchable.
Depending on the circumstances, the court might ask the administrator to find someone who guarantees their responsible management of the estate. These guarantors, also known as sureties, would be financially responsible if the administrator mishandles the assets.
When seeking a Letter of Administration in Malaysia, the approach depends on the estate’s worth.
- For estates under RM2 million, apply through the Small Estates (Distribution) Act 1955 to a Land Administrator or District Officer for a distribution order, a slower process suitable for straightforward estates.
- For estates over RM2 million, application is made by petition at the High Court, with the High Court appointing an administrator upon approval.
- An application may be made to Amanah Raya for estates worth less than RM600,000.00
By this time, the assets will be distributed through the governing law for each state. Mainly, Distribution Act 1958 and Intestate Succession Ordinance 1969 via the below table:
| Family | Parents Amount | Spouse Amount | Issues Amount |
| Leaving Parent(s) only | 100% | – | – |
| Leaving Spouse only | – | 100% | – |
| Leaving Issue only | – | – | 100% |
| Leaving Parent(s), Spouse and Issue | 25% | 25% | 50% |
| Leaving Parent(s) and Spouse | 50% | 50% | – |
| Leaving Spouse and Issue | – | 33.33% | 66.67% |
| Leaving Parent(s) and Issue | 33.33% | – | 66.67% |
When a minor is a beneficiary in Malaysia, a guardian must manage their inheritance until they reach adulthood. This guardian, designated by the will, trust, or court, handles the assets for the minor’s benefit, including education and healthcare.
If no guardian is named, the court appoints one. Guardians must prioritize the minor’s interests and can be held accountable for mismanagement. The role’s specifics are outlined in the will, trust, and Malaysian law, emphasizing the guardian’s responsibility towards the minor’s well-being and financial security.
Having a Will simplifies the entire process. The Testator is able to decide what happen to his/her assets and children. The court and law will not make that decision as the Testator has outline his/her wishes accordingly.
The basic requirement of a valid Will are as follows;
- The testator must be a minimum age of 18 years old
- The testator is of sound mind
- The Will is in writing and signed
- Two (2) witnesses are present at the time of signing
The clauses that may be included in the Will are the depiction of the Testator wishes which clearly outlines the following areas:
- Executor – Responsible for ensuring that the Will is executed according to the testator’s wishes. This includes locating the will, applying for the Grant of Probate, clearing of debts and distribution of assets.
- Beneficiary – A person who’ll benefit or inherit something from the testator
- Legal Guardian – Responsible in the caring and raising of the Testator’s minor children
- Pet guardian – Responsible in the pet’s welfare and care
- Witnesses – Responsible in ensuring the testator is of sound mind and not under any influence during the signing of the Will.
