Division of Inheritance
In Malaysia, inheritance (harta pusaka) is divided into several main categories for the purposes of management and distribution. This classification is important to determine the legal procedures that must be followed. Main Categories of Inheritance Assets 1. Immovable Property (Harta Tak Alih) Assets that cannot be moved from one place to another. Examples: Land (individual or joint title) Houses / buildings Farms, plantations 2. Movable Property (Harta Alih) Assets that can be transferred or moved easily in terms of ownership. Examples: Cash Vehicles (car, motorcycle) Jewellery Furniture & household items Financial instruments such as EPF, ASNB units, Tabung Haji savings
Below are the main estate categories and the respective management authorities: Small Estate (Below RM5 million) Small estate refers to the deceased’s assets where: Leaving property either movable property only, immovable property only or both The total value of the property (movable and immovable) does not exceed RM5 million on the date of application Managed by the Department of the Director General of Land and Mines (JKPTG) or Amanah Raya Berhad (ARB) Subject to faraid law (if Muslim) or the Partition Act 1958 [Act 300] (non-Muslim) Large Estate Large estate refers to cases where: The value exceeds RM5 million, or; The deceased left a will under the Wills Act 1959 (non-Islamic) Jurisdiction of the Civil High Court If there is a will: Application for Grant of Probate (Testamentary Estate) If there is no will: Application for Letters of Administration (LA) The court will appoint an administrator of the estate from among the heirs Summary Estate ( Below RM600,000 ) Estate involving movable property only , such as bank accounts, ASB, KWSP Administrative power of attorney issued by Amanah Raya Berhad Example: EPF, ASNB, bank savings, Takaful, car
Before applying for the management of the estate of a deceased Muslim, heirs need to take several initial steps to ensure that the process of distributing the estate runs smoothly and complies with Islamic law and Malaysian legislation. Important things before distributing the estate for Muslims: Identify abandoned property Gather property information List the estimated value of each property (if possible) Identify the amount of the deceased's property to determine the jurisdiction of the court that will hear the case Resolve debt-related matters Pay the debts of the deceased (including zakat, vows, bank debts, etc.) Matrimonial property claims (if relevant) Identify assets purchased during the marriage and whether there were joint contributions Make a claim for marital property at the Syariah High Court The spouse's share claimed and confirmed as marital property will be removed from the estate Check if the deceased has a will/gift If there is a valid will/gift according to Islamic law, the will/gift must be executed first. Identify eligible heirs Determine who is still alive and has the right to inherit the estate (according to Faraid law) Make sure the heir's identification documents such as MyKad/birth certificate are available Application for Faraid certificate (if required): The Syariah Court will confirm the list of entitled heirs and their respective shares according to faraid. Orders are implemented in relevant agencies Heirs can submit orders to relevant agencies, for example: Land Office for land title registration Bank for claiming savings JPJ for changing vehicle ownership
The following is the complete procedure for the distribution of small estates in Malaysia, namely estates consisting of: Immovable Property only or Movable Property only or Combination of Immovable Property with Movable Property which is worth not more than RM5 million on the date of application Application steps: Prepare supporting documents Copy of the deceased's death certificate Copy of the heir's identity card Copy of land grant/immovable property title Proof of movable property: bank statement, EPF, ASNB Copy of marriage certificate/birth certificate Apply via the MyLand portal Submit an application online via the MyLand portal Small Inheritance Trial All heirs will be given notice to attend the small estate hearing Heirs who are unable to attend must complete the DDA form (consent form) Heirs must state the method of distribution whether: Faraid: According to Islamic law (for Muslims) According to the Partition Act 1958 [Act 300] (for Non-Muslims) Muafakat waris: All heirs agree voluntarily If there is agreement from all heirs, the decision is finalized. Implementation of orders in relevant agencies JKPTG will issue a Distribution Order / Letter of Administration Heirs can submit the order to the relevant agency for example: Land Office for land title registration Bank for claiming savings JPJ for changing vehicle ownership This estate distribution order does not apply in Sabah and Sarawak.
The MyLand Portal is an integrated digital platform developed by the Department of the Director General of Federal Lands and Mines (JKPTG). Among the online services offered: Application for distribution of small inheritance Property information check Faraid calculator Act 300 calculator (non-Muslim property distribution)
The procedure for applying for a large inheritance in Malaysia involves an estate exceeding RM5 million. The following is the general procedure for applying for a large inheritance: Related documents Death certificate Identification documents of applicant and heirs Full list of assets (immovable and movable) Proof of property ownership: land grant, bank account, EPF, insurance, shares, etc. Copy of will (if any) Marriage/birth certificate of heirs Identify the type of application Deceased has a will: application for probate Deceased has no will: application for Grant of Letters of Administration (LA) File an application in the high court The application must be filed by the lawyer appointed by the heirs in the High Court through an originating summons and affidavit. Court hearing The court will determine whether: Approve the appointment of an administrator (if there is no will) Recognize the executor (if there is a will) If there is no objection, the court will issue an order Letter of Administration (LA): To administer and distribute the estate (if there is no will) Probate: To carry out the contents of a will (if there is a valid will) Registration and division of property The administrator/executor must register a letter of Power of Administration at the Land Office and related institutions to carry out the division.
A simple inheritance refers to an inheritance worth RM600 thousand or less and containing movable property. Application steps: Open the application file Come to Amanah Raya Berhad branch Bring relevant documents (refer to list below) File will be opened for inheritance administration application if complete Submission of supporting documents Original certified Death Certificate Identity cards of all heirs Birth certificate/marriage certificate (for proof of heir relationship) Proof of property documents (bank account, land grant, ASNB statement, EPF, insurance, etc.) Copy of will (if any, different procedure) Amanah Raya will carry out the following process: Investigation to verify heirs and property Obtaining verification of property value Issuance of power of attorney by Amanah Raya Property claim process to the agency Filing at the High Court/JKPTG (if necessary) Amanah Raya will make an application to the High Court or the Small Estates Office, if relevant. Property Division Once completed, Amanah Raya will manage the distribution according to: Faraid Law (for Muslims) Partition Act 1958 (for non-Muslims)
Amanah Raya Berhad (ARB) is a wholly government-owned company under the Ministry of Finance Malaysia. It offers a wide range of professional and legally-based estate management and inheritance services. Services offered by ARB include: Will: A legal document that details the distribution of assets to loved ones according to your wishes. Assets that can be bequeathed include immovable property (houses, buildings) and movable property (vehicles, stocks, investments, etc.) The estate administration process includes: Collecting and managing the deceased's assets Settling any debts Distributing the estate to the rightful beneficiaries Trust Management ensures that your movable and immovable assets are inherited by your loved ones. A trust account can be opened by any individual or corporate company. Purpose: Protecting the interests of loved ones such as minors or people with disabilities Any other charitable purpose within a certain period of time Alternative instrument for the donor to transfer ownership of property that is still secured or unsecured to the recipient of the hibah The donor during his lifetime can also give away the hibah property that is still secured by fulfilling the pillars and conditions of hibah
