ESTATE ADMINISTRATION

FUNCTIONS OF LETTERS OF ADMINISTRATION

Letters of administration is applied by an administrator who has an interest in the estate of the deceased to claim the estate. This application is made if the deceased did not leave a will. In the event that the deceased has a will, the executor needs to apply for a grant of probate to implement the deceased’s will. In short, letters of administration application is the first step that needs to be taken to ensure that the administration of the deceased’s estate is carried out.

WHO CAN APPLY FOR LETTERS OF ADMINISTRATION?

Speaking about the application for letters of administration, it can be applied for by parties who have an interest in the deceased’s estate. Usually, the administrator is among the heirs. For this purpose, the heirs of the deceased need to discuss to choose who is eligible to be the administrator. There are also other situations where the party also has an interest and may apply for letters of administration, namely:-

  • Creditors
  • Purchaser of the deceased’s property under a valid agreement
  • Business partners

WHERE CAN THE APPLICATION FOR LETTERS OF ADMINISTRATION BE MADE?

Administrators have the option to apply at:-

Civil High Court

    • In relation to the application for letters of administration or grant of probate by the heirs or interested parties.
    • The total amount of property exceeds RM2 million.

Small Estate Office

  • In relation to the application for letters of administration.
  • The amount of property is less than RM2 million, consisting immovable property.

Amanah Raya Berhad

    • A management company that can administer the estate without letters of administration from the High Court or the District Land Administrator’s Office.
    • Can be an estate administrator for assets less than RM600,000 and 100% movable property.

GRANT OF PROBATE APPLICATION?

If the deceased left a will, the executor named in the will can apply to the High Court for a Grant of Probate. The court will look and determine whether the will is valid and enforceable. Once the grant of probate is obtained, the administration of the estate can be done by the executor appointed by the Court to distribute and manage the deceased’s estate.

WHAT IS A WILL?

Section 2 of the Probate and Administration Act 1959:

Will includes any codicil or other testamentary document and a privileged will valid under section 26 of the Wills Act 1959 [Act 346], or the corresponding written law in force in Sabah or Sarawak. Section 2 of the Muslims Wills (Selangor) Enactment 1999: Iqrar of a person made during his lifetime on his property or benefits to complete something for the purpose of charity or any purpose permitted according to Hukum Syarak, after his death.

CONFLICT OF DISTRIBUTION OF INHERITANCE BETWEEN SIBLINGS

Amar v Siti dan Mira [2007] 3 MLJ 418-not real name (Court of Appeal case). Amar, Siti and Mira are siblings. Their parents have died. Amar demands from Siti and Mira the inheritance of their late mother. The deceased left a plot of land with a house on it. The distribution and transfer of ownership of the land has been made in the name of Siti and Mira only. Amar doesn’t know anything. Amar stated that when the application for division was made by Siti, the application was supported by a letter of declaration by their late mother’s biological brother; Uncle Jali. Uncle Jali made a confession that the deceased had no son. The Court of Appeal granted Amar’s application. The High Court shall hear and hear Amar’s application.

IS THERE AN ISSUE WITH YOUR FAMILY REGARDING ESTATE ADMINISTRATION?

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