How Are Your Assets Distributed If You Don’t Have A Will In Malaysia
How Are Your Assets Distributed If You Don’t Have A Will In Malaysia
If you have yet to draft a will and are wondering whether or not you should get one, this article is for you. Malaysians can simply be categorized as Muslims and Non-Muslims. The two are bound by different inheritance laws- Syariah Laws and Distribution Act of 1958 as well as Will’s Act of 1959 respectively. Today, we will focus solely on the distribution of assets for deceased Non-Muslims.
If you die without a will (intestate), Section 6 of the Distribution Act 1958 (Amended 1997) will govern the distribution of your assets which are better known as estate. Instead of following your last wish, this section establishes a formula that helps determine the priority and order in which your estate is distributed to your legal beneficiaries. Generally, the estate will go to your immediate family members. For example, your issue, parents, and spouse. Issue is your lineal descendants of all generations such as children, grandchildren and great grandchildren. The same law applies to deceased persons of both genders. The distribution of estate in different scenarios are better discussed below.
Scenario 1: You are unmarried at the point of death
If you are single and childless, having no spouse and child but parents only, both your living parents will get your whole estate.
Scenario 2: You are married but childless at the point of death
If you have a spouse but the two of you do not have any children and both your parents have passed on, your spouse will inherit your whole estate. However, if your spouse as well as your parents are still alive, the former and the latter each gets half of your estate.
Scenario 3: You are married with children at the point of death
If you have a living spouse, children as well as parents when you pass on, your spouse and parents each gets a quarter of your estate while your children inherits the remaining two quarters or half of your estate. If your parents are no longer alive, your spouse will receive one-third of your estate while the remaining two-thirds will go to your child (or equal shares if more than 1 child). Nonetheless, if your spouse dies before you, one-third of your estate will go to your parents and two-thirds will be distributed to your children. Other than that, if both your spouse and parents have deceased, all your estate will go to your issue.
Scenario 4: You have no parents, spouse and issue at the point of death
If you die without any living parents, spouse and children, your estate will be distributed to your siblings; grandparents; uncles and aunts; great grandparents; great granduncle and grandaunts in order of decreasing priority. In other words, your estate would first be shared equally among your brothers and sisters. If you do not have any siblings, your estate would then go to your grandparents, and so on.
Scenario 5: You have absolutely no kin and kith at the point of death
If you die without any of the legal beneficiaries mentioned above, your whole estate will go to the government.
Although Section 6 of the Distribution Act 1958 (Amended 1997) has clearly outlined how your estate will be distributed if you do not have a will at the point of death in Malaysia, the whole administration process is lengthy and time-consuming, ranging anywhere from two to five years. Therefore, to prevent your loved ones from going through this cumbersome and taxing process, you are highly advised to get your will made. Estate planning is rather complicated. Why not get yourself an estate planning attorney to help you draft a valid will today?
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