Estate Administration Malaysia

Estate Administration in Malaysia

Estate administration means the management of the estate of a person. In the context of Wills and Trusts, it means the management of the estate of a person who has died (the deceased).

The Estate of a Person

An estate is the assets or wealth. In financial terms, this means the wealth of a person. When a person dies, the estate is frozen by law. Nothing owned by the deceased can be used by others, including their family members.

The estate is defined by law as movable and immovable assets. Immovable assets would be properties such as land, apartments and houses. Movable assets would be jewelry, cash, share certificates, bitcoin and bank accounts.

Contact our expert estate planner, Levine Lee for clarification and more information.

Estate Administration Steps in Managing the Assets of the Deceased

The Government steps in to manage the assets of the deceased. According to the process of the laws of Malaysia as follows:

• Assets are immediately frozen upon death
• No bank transactions on the deceased’s accounts is allowed

Estate Administration in Malaysia for Death without a Will

• Death without a Will
  • The deceased is declared to be Intestate (Has not legally stated how the estate is to be distributed)
  • The deceased’s legal heirs will have to identified and defined by the Distribution Act of Malaysia
  • These legal beneficiaries will have to agree on who would be an administrator of the estate.
  • These legal beneficiaries will then have to get a lawyer to get a Letter of Administration from one of the following:
    • The High Courts (If the estate is more than RM5 million) or
    • District Land Administrator (If the estate with partly immovables, is less than RM5 million or movable assets less than RM600,000)
    • Amanah Raya Berhad (If the estate with wholly movable, is less than RM600,000)
  • Apply for a Letter of Administration
  • With the Letter of Administration, the Executor can then pay all debts of the deceased, and distribute the balance of the estate according to the Distribution Act of Malaysia.

Example of Letter of Administration by Malaysian Courts

Estate Administration in Malaysia for Death with a Will

• Death with a Will
  • The deceased is declared to be Testate (Has legally testified how the estate is to be distributed to beneficiaries)
  • The Will is to be found and to be shown to be legally correct
  • The Executor named in the Will needs to be found
  • The Executor will have to get a lawyer to go to court to apply for the grant of probate
  • The lawyer applies for a Grant of Probate
  • With the Grant of Probate, the Executor can then pay all debts of the deceased, and distribute the balance of the estate according to the Will.

Example of Grant of Probate by Malaysian Courts

Estate Administration and Executor’s duties

With either the Letter of Administration or Grant of Probate, the Executor will then:

• Make the list of the assets (movable and immovable) of the deceased
• Get an appraisal of the assets
• Paying off the debts of the deceased
• Paying off any taxes, or other legal fees
• Collecting any payments or debts owed to the estate or to the deceased
• Collect and assemble all beneficiaries as legally defined or listed in the Will
• Announce to all assembled beneficiaries their inheritance
• Distribute the assets to beneficiaries

Issues with Estate Administration in Malaysia

The biggest issue is the speed of getting expert advise and action to release the frozen assets to the beneficiaries. Which is why people use Trusts to ensure assets are made available to beneficiaries much faster with minimal legal issues.

An expert in Will Writing and legal matters is Rockwills and their Franchisees. Contact the Rockwills Franchisee for best advice and estate planning.

Rockwills Will Writing and Will Custody Services

Rockwills Will Writing and Will Custody Services

Rockwills provides a range of services for wealth distribution management.  This product offers both Will writing in Malaysia and Will safe keeping (custody) services.

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Contact Rockwills Malaysia Franchisee and Estate Planner Levine Lee

Rockwills franchisee Levine Lee is available to advice, guide and plan your estate administration needs. Whether its will writing services or trustee services.

You can call or WhatsApp to Rockwills franchisee Levine Lee at +6012-684-0948 or send in the form below. She will get touch with you based on your request in the form.

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