In February 2025, Amanah Raya Berhad reported that assets of approximately RM65 billion lie idle or unclaimed in Malaysia, some RM60 billion of it immovable property, and that only about 1.7 million Malaysians have made a will. Behind those figures are families who cannot withdraw from a bank account or transfer the family home, often for years.This article sets out the requirements for a valid will, the consequences of dying intestate, the routes by which an estate is administered, and the assets that pass outside a will altogether. The making of a will by a non-Muslim in Malaysia is governed by the Wills Act 1959. Where a person dies without a valid will, the estate is divided in the fixed shares prescribed by the Distribution Act 1958, and the authority to deal with the estate comes from a grant issued by the High Court under the Probate and Administration Act 1959.A testator must have attained the age of majority and must be of sound mind when the will is executed. The will must then satisfy the formalities prescribed by section 5 of the Wills Act 1959 :- it must be in writing;
- it must be signed at the foot or end by the testator, or by another person in his presence and at his direction;
- the signature must be made or acknowledged by the testator in the presence of two or more witnesses present at the same time; and
- each witness must then attest and sign the will in the presence of the testator.
Under section 9 of the Wills Act 1959, a gift to a person who attests the will, or to the spouse of that person, is void, although the will itself and the attestation remain valid. Witnesses should therefore be adults who take no benefit under the will. A will that fails these formalities is of no effect, however clearly, it expresses the deceased's wishes. These formalities are precisely where homemade wills most often fail.What should a will contain?
Where A properly drawn will ordinarily provides for:Executors : The persons who will administer the estate. Representation will not be granted to more than four persons in respect of the same property. An executor may also be a beneficiary, and a substitute should be named in case the first appointed dies, declines or is unable to act.
Guardians : Where there are children under 18, a parent may appoint a guardian by deed or by will, the appointment taking effect on that parent's death (section 7(1), Guardianship of Infants Act 1961). The mother and the father have equal rights in this respect.
Beneficiaries and gifts : Specific gifts and shares of the estate, described with enough precision to identify both the beneficiary and the asset, and with provision for a beneficiary who does not survive the testator.
A residuary clause : Disposing of everything not specifically given away. Without one, overlooked or later-acquired assets fall into a partial intestacy and are distributed under the Distribution Act 1958, which is the very outcome the testator sought to avoid.
Practical directions : Including a record of digital assets such as online banking, e-wallets, and investment and trading accounts, so that the executor knows what exists and where to look for it.
The signed original should be kept in safe custody and its location made known to the executor.Who inherits if there is no will?
What passes on an intestacy is the net estate, being what remains after the deceased's debts, funeral expenses and the expenses of due administration have been paid. That balance is then divided in the fixed proportions laid down by section 6(1) of the Distribution Act 1958, irrespective of the deceased's known wishes.The proportions turn on which of three classes of relation survive the deceased (1) the spouse, (2) the issue, and (3) the parents. "Issue" includes children and the descendants of deceased children, and "child" means a legitimate child. Where a child of the deceased died before him leaving children of his or her own, those grandchildren take between them the share their parent would have taken had he or she survived. The shares of a class are divided equally among its members, so where there are three surviving children the two-thirds due to the issue is divided into three.Where no spouse, issue or parent survives, the estate passes to the first surviving class in a statutory order to brothers and sisters, then grandparents, then uncles and aunts, then great grandparents, then great grand uncles and aunts. If none of them survives, the estate passes to the Government.Two consequences deserve emphasis. First, a surviving spouse does not automatically inherit everything. A widow or widower with children takes one-third of the estate, and only one-quarter where a parent of the deceased also survives. Those fractions apply to the matrimonial home as much as to the bank accounts, so a surviving spouse may be left holding a fractional share of the house he or she lives in, as co-owner with the children. Secondly, an intestacy leaves no executor. No one has authority over the estate until the court appoints an administrator, and until the grant is extracted the assets cannot be dealt with at all.How is an estate administered?
Grant of probate : Where there is a will, the executor applies to the High Court for a grant of probate confirming his authority to administer the estate. The will identifies both the person in charge and the beneficiaries, which makes this the most direct route. An uncontested application is ordinarily completed within three to six months.Letters of administration : Where there is no will, an interested person, usually the surviving spouse or an adult child, applies to the High Court for letters of administration, a process which commonly takes six to twelve months. The court must first be satisfied as to who is to administer the estate. An administration bond is ordinarily required, with two sureties whose means are sufficient for the value of the estate, however, no security is required where the gross value of the estate does not exceed RM50,000, and the sureties may be dispensed with in defined circumstances. Finding willing sureties is, in practice, among the most common obstacles a family encounters.Small estates : With effect from 15 July 2024, a small estate is one not exceeding RM5 million in total value and comprising any property, movable or immovable (Small Estates (Distribution) Act 1955, as amended by Act A1643, in force by P.U. (B) 267/2024). The threshold was previously RM2 million and the estate had to include immovable property. Petitions are heard by the Estate Distribution Section under the Department of Director General of Lands and Mines rather than by the High Court, and parties may appear in person. The procedure is confined to estates of persons who died intestate: a small estate left under a will must still be proved in the High Court.Summary administration by Amanah Raya : Where an estate consists wholly of movable property not exceeding RM600,000, the family may apply to Amanah Raya Berhad for summary administration under section 17 of the Public Trust Corporation Act 1995, frequently the quickest route for a modest estate.Which assets fall outside the will?
Not everything a person owns passes under the will.EPF savings : A member's savings are paid to the registered nominee. For a non-Muslim member the nominee receives them as the beneficiary, so the nomination prevails over the terms of the will. Where no nomination has been made, the savings are released to next-of-kin under the EPF's own procedures, which adds both delay and documentation.Jointly held land : Malaysian land law does not recognize a right of survivorship between co-proprietors. On the death of one co-proprietor the undivided share does not pass automatically to the other. It is dealt with under the deceased's will or on intestacy (section 343, National Land Code). Spouses who assume that the survivor simply keeps the house are usually mistaken.ConclusionA will determines three things that are otherwise decided by statute and by the court ie (1) who administers the estate? (2) who inherits and in what shares? and (3) who is to be guardian of minor children? Its absence does not prevent an estate from being distributed, but it removes the family's say in the matter and adds months, and sometimes years, to the process.Reviewing a will matters as much as making one. Marriage revokes it, divorce does not, and the nominations made to the EPF and to insurers operate independently of it. A will made at the start of a marriage rarely reflects the position twenty years and three properties later.
If you are considering making a will, reviewing an existing one, or have been named as executor, our team is able to advise on the preparation and review of wills and to act in probate and estate administration matters.
Contact us at office@lschambers.my
References :
Wills Act 1959 [Act 346] — Sections 2, 4, 5, 9, 12, 14 & 15
Distribution Act 1958 [Act 300] — Sections 3, 4 & 6, as amended by the Distribution (Amendment) Act 1997
Probate and Administration Act 1959 [Act 97] — Sections 4 & 35
Small Estates (Distribution) Act 1955 [Act 98] — Section 3, as amended by the Small Estates (Distribution) (Amendment) Act 2022 [Act A1643], in force 15 July 2024 [P.U. (B) 267/2024]
Public Trust Corporation Act 1995 [Act 532] — Section 17
Guardianship of Infants Act 1961 [Act 351] — Sections 5 & 7
Financial Services Act 2013 [Act 758] — Schedule 10, paragraphs 5 & 6
Employees Provident Fund Act 1991 [Act 452]
Inheritance (Family Provision) Act 1971 [Act 39]
National Land Code [Act 828] — Section 343
Age of Majority Act 1971 [Act 21]
Figures as reported by Amanah Raya Berhad on 24 February 2025 (New Straits Times).