APPLICABLE LAW REGARDING INHERITANCE ADMINISTRATION IN MALAYSIA

• Small inheritance

– Amanah Raya Corporation Act 1995 (Amanah Raya Berhad)

– Small Estates (Distribution) Act 1955 (Small Estates Distibution, Department of Director General of Lands and Mines)

• Big inheritance

– Probate and Administration Act 1959

  *Without a will: Letters of administration

*There is a will: Grant of probate

– Wills Act 1959

TYPES OF INHERITANCE

• Movable Property:

– Savings in the bank

– Cash

– EPF

– Shares

– Vehicles

– Insurance/takaful compensation

• Immovable Property:

– Home

– Land

AUTHORITY OF THE INSTITUTION REGARDING INHERITANCE ADMINISTRATION (1)

• Civil High Court
  • In relation to the application for letters of administration or probate by the heirs or interested parties.
  • Total property exceeding RM2 million.

• Syariah High Court
  • Only has the role of issuing a faraid certificate and is referred when collateral issues arise in the management and administration of the inheritance such as the issue of confirmation of heirs and the rights of heirs.
  • Confirming the heirs who are entitled to the property of a deceased Muslim and confirming the inheritance proportion according to faraid.

AUTHORITY OF THE INSTITUTION REGARDING INHERITANCE ADMINISTRATION (2)

• Amanah Raya Berhad
  • A trusteeship company with specific jurisdiction to represent the heirs in managing the administration of the inheritance.
  • Can be an administrator for assets less than RM600,000 and 100% movable property.

• Small Estate Office
  • In relation to the application for letters of administration.
  • Total property is less than RM2 million and there is immovable property.

Azim dan satu lagi lwn Malek dan lain-lain [2022] MLJU 671 – not the real name

HEIRS FIGHTING FOR RENT MONEY REGARDING THE INHERITANCE!

The case involves properties that have been listed as the inheritance of the late Hj Borhan through an application for letters of administration in the High Court. Azim is the son of Hj Borhan. Malek is the heir of the deceased named Ali, and Ali is the son of Hj Borhan. The properties of the late Hj Borhan have been declared by the Syariah Appeal Court (MRS) to be divided among the heirs by faraid. Before the MRS decision was issued, Malek and other heirs had rented out 4 shophouse units on the 4 properties involved. The rent has been taken. Azim made a claim against Malek regarding the rental payments that had been received from the 4 properties.

Azim dan satu lagi lwn Malek dan lain-lain [2022] MLJU 671 – not the real name

RENTAL CLAIM APPLICATION REJECTED BY THE COURT!

The High Court in this case ruled that the letters of administration order that had listed the properties left by Hj Borhan did not include the rental money that had been obtained by Malek and other heirs. This letter of administration order cannot be used to give power to Azim to include the rental amount that has been previously collected from the Order as part of the late Hj Borhan’s inheritance. The Court is of the view that this Court does not have the jurisdiction to determine that the rent that has been collected is part of the inheritance that needs to be distributed according to faraid. The court does not need to determine at this stage whether Azim has proven that the amount of money collected is the amount actually collected by Malek. Azim’s application was rejected.

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