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Many still do not know the importance of the will writing Malaysia. According to a press report in 2016, the value of an unclaimed estate is estimated at RM60 billion! The best way to solve this problem is to make sure you have written a will. Unfortunately, only a small number of Malaysians have written their will. This is further exacerbated when our society does not know that their assets can be frozen when they die. Before we continue to the topic of the importance of will, it is important to know the definition of will first.
Will Writing Malaysia: What Is a Will?
According to the Muslim Will (Selangor) Enactment 1999, the will is a person’s Iqrar made during his lifetime or the benefit of completing something for the purpose of welfare or any purpose allowed in accordance with Islamic law, after death.
Although the law of the law is a recommended act of circumcision, the law can also change according to the following situations:
Wajib
The will is compulsory when a person has responsibilities that must be fulfilled especially in the form of ‘rights of God’ such as zakat, kafarah and pilgrimage that cannot be fulfilled if it is not given to someone to perform it. Similarly, the responsibility of human rights such as having property entrusted to it and the debt that has not been settled.
Haram
The will is illegal when one presents something that is banned by the Islamic law or is intended to harm the heirs.
Should
The will should be made to the rich either from relatives or any party with no specific purpose. If the will is intended to do good and connect the bond of friendship, then it is circumcised.
Makruh
The will is a good idea if the testator has little property but at the same time has a poor heirs who are in dire need of property. Similarly, it is not advisable to give a will or a person who often commits evil because it is feared that the will will further enhance their tendency to commit evil.
The Distribution Process of the Will
For your information, the will of the will is for non-heirs only. The will cannot exceed 1/3 of the total property. If the rate is exceeding 1/3, the consent of the beneficiary should be obtained. The consent of the beneficiary is not required if it is less than that amount. The will only need ijab and the transfer of property can only occur after death. However, EPF savings or insurance policies cannot be considered. The money will be given to the nominees of these two things subject to different acts.
Distribution of estate can take more than five years if it involves complicated cases. Your death will be classified as ‘unbeatable’ if you die without a will. This is because, you do not leave the instructions for who should receive your estate, including the amount and value of the relics. These property include all your bank savings, real estate and other assets.
Muslims
In Malaysia, Muslims and non-Muslims are subject to different inheritance laws. For Muslims, the unprecedented inheritance will be divided by the law of faraid. The unexpected estate will be given to Baitulmal. If the beneficiary has not reached the age of 18, disabled or disabled, their part will be deposited into the Trust Account in AMANAHRAYA. It can be claimed when the beneficiary is 18 years of age or age agreed upon in the Trust deed.
Non-Muslims
For non-Muslims, priorities will be given to those who manage the burial and repayment of the outstanding debt. Subsequently, the remaining estate or unwanted money you will be given to the beneficiary in accordance with the rules of the Distribution Act 1958 (Amendment 1997) for Peninsular Malaysia and Sarawak, while the Intestate Succession Ordinance 1968 is used for Sabah.
For the beneficiary under the age of 18, a guard will be appointed by the court but this does not mean that the guard has the right or absolute power of the inheritance. Permission from the court is necessary if the guardian wishes to withdraw or use the money left to support the cost of education and the costs involving the beneficiary under 18.
The Importance of a Will
Indeed, death cannot be expected. However, we can determine what happens to the property that exists after our departure by making a will. When no will is made after the person dies, all assets will be divided under the Small Property (Distribution) Act 1955.
According to the official portal of the Director General of Land and Federal Mines, this Act describes the definition of small inheritance. It also explains the jurisdiction, work process that starts with the application of inheritance, trial, issuance of orders, to the appeal process to the High Court.
In addition to the Act, there are rules of inheritance that outline the implementation and application of relevant forms in small inheritance solutions. In determining the division, faraid law is used for Muslim inheritance, while the Distribution Act 1958 is used for non -Muslim inheritance.
Died Without a Will? 4 Steps to Distribute property Based on Faraid
What will happen to the property if you die before you can make a will? If the deceased dies without leaving a will, the Muslim inheritance can be divided by the concept of faraid.
What is Faraid?
Faraid is part of Islamic law relating to the distribution of assets to legitimate heirs of a deceased person, based on Islamic religious law. The basis of faraid law is based on the Quran and the hadith. According to the official e-Shariah portal, the estate (faraid) is divided into two, namely:
- Non-movable property such as land and home.
- Movable property such as bank savings, stocks, EPFs, Hajj Funds, Insurance, Cooperatives, Cars, Jewelry, and the like.
However, the distribution of faraid cannot happen immediately. Many are aware that the process of dividing the property without a will will take a long time, and it can be very complicated if not applied properly.
The estate will be frozen shortly after you die and cannot be claimed by anyone. The property can only be distributed once the division case has been resolved. Below is a list of what will happen to your property when you die without making any will, and what your legal beneficiary should do.
#1 Apply for Faraid Certificate
To start the Farid Property process, or to file a faraid case, the beneficiary must submit a form to apply for a Faraid Certificate.
Among the documents that the beneficiary needs to provide is:
- Complete application form.
- A copy of the deceased’s death certificate or declaration.
- Copy of the Identification Card of the Waris/Birth Certificate/Declaration Letter.
- Copy of property grant/account book/statement.
- Real Estate Certificate (if any).
- Process money according to the full value of the estate (RM30/RM20/RM10).
#2 Follow the Process of the Process Carefully
The beneficiaries need to make sure that all processes are followed and made carefully so that the distribution can be approved and managed smoothly.
This is the process involved in the Faraid Certificate application:
- Submitting the application.
- Receive application.
- Check.
- If complete, receive and sign.
- Investigation of the beneficiary is conducted on the day of registration, or another day as prescribed.
- The calculation will be done when the investigation is completed.
- Get the certificate within 5 days after the investigation of each heirs is completed.
- Notifications will be given when the investigation is over.
#3 Get the Heirs’ Consent
According to the faraid system, all heirs according to the Quran must agree to select the same administrator. The appointment of the administrator must also be done in writing. Who is the heir according to the Quran and the administrator?
The heirs according to the Quran are the heirs who have the right to obtain the part of the deceased’s property as described in the Quran. The administrator is a person who is appointed to administer the deceased’s estate such as the heir, not the heir, the property management institution or the lawyer.
How to Claim Assets Without Will?
Many consider the process of applying for a claim to distribute the deceased’s estate to be complicated so that the billions of inheritance are not claimed. In fact, the complexity that is often used by a heirs in applying for the distribution of inheritance is usually when they are less knowledgeable and do not want to use the various facilities they have offered. Property Degree Procedures should be in accordance with the following procedures:
#1 Big Estate
Applications for the administrative authority under the category of large estate must be made in the Civil High Court. Applications can be made by anyone who has an interest in the property (including Amanah Raya Berhad and Baitulmal). The administration is subject to the Probet and Administration Act 1959.
Applications must be made in court near the deceased to obtain a letter of administration. Once a letter of administration is obtained, the administrator must register himself at the Land Office so that all of these title letters are registered with the applicant as the trustee of the deceased property.
Then the administrator has to list all the assets of the deceased (after searching) and obtain a faraid order from the Syariah Court. The administrator is responsible for resolving the deceased’s liability including the cost of burial and debt of the deceased. Then, the administrator shall apply for an order for the distribution of property in the Civil Court. These divisions can be made in accordance with the law of faraid or in agreement (not among the heirs).
#2 Small Estate
Small estate is an inheritance subject to the Small Property (Distribution) Act 1955, the deceased who abandoned immovable or immovable property along with the movable property and the value of all not exceeding RM 2,000,000. Applications for divisions for small estate can be made by (a) the heirs such as a widow or female, son or daughter, mother or father, Islamic Religious Council (Baitulmal) and so on; (b) creditors and debtors; (c) Buyer under a valid sale agreement letter; (d) the deceased’s land or leaseholders; (e) The Leader or Settlement Officer directed by the Land Administrator; (f) Amanah Raya Berhad. Applications are made by filling out Form A and submitting several documents including death certificates, fertilizers and documents related to the deceased property and the property search certificate.
Form A must be submitted in the Nearest JKPTG Unit. The trial notice will be issued later through Form D and all beneficiaries are required to attend. The unable to attend can submit a letter of consent (Form DDA). The trial was held to determine the property of the deceased, to determine the deceased’s heirs, to determine the heirs and to determine the method. The inheritance solution will be made by a small inheritance officer in accordance with Islamic law or in agreement if all beneficiaries are entitled to inherit the deceased’s estate (takharuj). Distribution is made after the administrator appointed by Form F resolves the cost of the burial and debt of the deceased. A division order will be issued later through Form E and the beneficiary shall submit the Land Title (Grant) to the relevant Land Office for the purpose of registration of the Distribution Order.
#3 Simple Estate
Simple estate is made up of movable property only such as cash not exceeding RM 600,000.00, shares, Employees Provident Fund (EPF), National Stock Trust (ASN), Bumiputera Stock Trust (ASB), cars, savings in banks etc. Applications for the distribution of this simple property must be made to the Director General of the Trust Corporation Berhad. The division of consensus can be implemented if all the beneficiaries are entitled to inherit the deceased’s estate (not). Distribution is made after the appointed administrator resolves the cost of the burial and debt of the deceased.
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